Your cash has potential. Use it.

Your cash has potential. Use it.

22 April 2016Reading time: 3 minutes

There are certain selected products that could help you harness the potential of your cash holdings. The array of options is continually changing, so it's worth keeping a regular eye on developments!

It’s not getting any easier for investors to find investments that offer returns but are conservative in nature nonetheless. Longer-term government bonds with good credit ratings are beset by negative interest rates, for example, while even bonds of solid companies are offering meagre yields.

Many investors are stockpiling cash and holding off from investing. The question preying on their minds when will our banks start with the broad-scale introduction of negative interest rates on short-term savings deposits? Holding out for a turnaround in the trend doesn't appear to be worthwhile, however, since the capital market is anticipating negative CHF interest rates of -0.25% in the 3-month segment through to the end of 2021 (source: Bloomberg, 12.04.2016).

Against this backdrop, the following Vontobel investment products with reduced risk may be suitable as liquid investments:

 

(Callable) Multi Defender VONTIs with low barrier

  • Reduced price risk of underlying compared with direct investments; high safety buffer thanks to low barrier.
  • Guaranteed and attractive coupon.
  • The nominal value is repaid as long as the underlyings do not touch their barriers during the barrier monitoring period (see termsheet). However, if at least one of the underlyings has touched its barrier during barrier monitoring and at least one of the underlyings closes below its strike price at final fixing, the stock with the poorest performance is delivered or a cash compensation corresponding to the final fixing price of this underlying is paid (unless early redemption has been made in full).
  • Callable feature: On each monitoring date, Vontobel as the issuer has the right to terminate the (Callable) Multi Defender Vonti and repay on the next coupon payment date. The redemption is made at the nominal value, plus the (most recent) coupon.

 

Callable Multi Barrier Reverse Convertible

Securities
No.
 UnderlyingsCouponCoupon p.a.BarrierMaturityCur.Subscription
closure
  
119434988
  • Quanto
  • (Issuer) Callable
EURO STOXX 50® Index
S&P 500® Index
SMI®
11.00% 5.50% 50.00% 07/10/2024 q CHF still 2 days
119434982
  • Product with sustainability features
  • (Issuer) Callable
Alcon
Galenica
Novartis
10.50% 7.00% 50.00% 08/04/2024 CHF 07/10/2022
119434976
  • Product with sustainability features
  • (Issuer) Callable
Bâloise
Helvetia
Swiss Life
11.25% 7.50% 55.00% 08/04/2024 CHF 07/10/2022
119434981
  • Product with sustainability features
  • Quanto
  • (Issuer) Callable
BP
Shell
TotalEnergies
16.125% 10.75% 50.00% 08/04/2024 q CHF 07/10/2022
119434984
  • Product with sustainability features
  • (Issuer) Callable
Givaudan
Richemont
Sonova
16.50% 11.00% 50.00% 08/04/2024 CHF 07/10/2022
119434987
  • Product with sustainability features
  • Quanto
  • (Issuer) Callable
LVMH Moët Hennessy Louis Vuitton
Richemont
10.00% 10.00% 50.00% 09/10/2023 q CHF 07/10/2022
119434979
  • Product with sustainability features
  • (Issuer) Callable
Nestlé
Richemont
Swisscom
15.00% 10.00% 55.00% 08/04/2024 CHF 07/10/2022
119434980
  • (Issuer) Callable
Credit Suisse
UBS Group
15.00% 15.00% 50.00% 09/10/2023 CHF 07/10/2022
119434978
  • Product with sustainability features
  • Quanto
  • (Issuer) Callable
Danone
Kellogg
Lindt & Sprüngli
Nestlé
16.50% 8.25% 55.00% 07/10/2024 q CHF 07/10/2022
119434983
  • Product with sustainability features
  • (Issuer) Callable
Logitech
Straumann
Swatch
20.25% 13.50% 50.00% 08/04/2024 CHF 07/10/2022
119434977
  • Product with sustainability features
  • (Issuer) Callable
Nestlé
Novartis
Roche
Swiss Life
Zurich Insurance
27.00% 9.00% 50.00% 07/10/2025 CHF 07/10/2022
119434974
  • Product with sustainability features
  • (Issuer) Callable
Swiss Life
Swiss Re
Zurich Insurance
18.00% 9.00% 50.00% 07/10/2024 CHF 07/10/2022
119434975
  • Product with sustainability features
  • (Issuer) Callable
Allianz
AXA
Generali
15.00% 10.00% 50.00% 08/04/2024 EUR 07/10/2022
121709318
  • (Issuer) Callable
Coca-Cola
Johnson & Johnson
Procter & Gamble
18.00% 9.00% 50.00% 07/10/2024 USD 07/10/2022
121709313
  • Quanto
  • (Issuer) Callable
Tesla
Volkswagen
26.00% 26.00% 50.00% 09/10/2023 q USD 07/10/2022

 

 

Multi VONTIs with low exercise price: either buy the stock cheaper or simply profit from a good coupon

  • It is possible for shares to be appealing but too expensively valued at that given moment. Equity investors would often happily buy certain stocks but at a (much) lower price.
  • The Multi Vonti with low exercise price is suitable for conservative investors who would in principle like to buy each of the stocks at a lower price (compared with the price at initial fixing), giving them a favourable entry opportunity.
  • If all of the equities are above the low strike price at final fixing, the nominal value is repaid in full and none of the underlyings are delivered. The investor receives the annual coupon in any event (unless early redemption has been made in full).
  • If physical delivery takes place, this may result in a loss (in terms of value) if the coupon payments made are insufficient to balance out the difference between the low strike price and the lower final fixing price of the stock.
  • Callable-Feature: On each monitoring date, Vontobel as the issuer has the right to terminate the (Callable) Multi Vonti and repay on the next coupon payment date. The redemption is made at the nominal value, plus the (final) coupon.

Callable Multi Barrier Reverse Convertible

 Securities
No.
 UnderlyingsCouponBufferYield max.Yield max. p.a.MaturityCur.BidAsk  
119434988
  • Quanto
  • (Issuer) Callable
EURO STOXX 50® Index
S&P 500® Index
SMI®
11.00% 07/10/2024 q CHF In Subscription
119434982
  • Product with sustainability features
  • (Issuer) Callable
Alcon
Galenica
Novartis
10.50% 08/04/2024 CHF In Subscription
119434976
  • Product with sustainability features
  • (Issuer) Callable
Bâloise
Helvetia
Swiss Life
11.25% 08/04/2024 CHF In Subscription
119434981
  • Product with sustainability features
  • Quanto
  • (Issuer) Callable
BP
Shell
TotalEnergies
16.125% 08/04/2024 q CHF In Subscription
119434984
  • Product with sustainability features
  • (Issuer) Callable
Givaudan
Richemont
Sonova
16.50% 08/04/2024 CHF In Subscription
119434987
  • Product with sustainability features
  • Quanto
  • (Issuer) Callable
LVMH Moët Hennessy Louis Vuitton
Richemont
10.00% 09/10/2023 q CHF In Subscription
119434979
  • Product with sustainability features
  • (Issuer) Callable
Nestlé
Richemont
Swisscom
15.00% 08/04/2024 CHF In Subscription
119434980
  • (Issuer) Callable
Credit Suisse
UBS Group
15.00% 09/10/2023 CHF In Subscription
119434978
  • Product with sustainability features
  • Quanto
  • (Issuer) Callable
Danone
Kellogg
Lindt & Sprüngli
Nestlé
16.50% 07/10/2024 q CHF In Subscription
119434983
  • Product with sustainability features
  • (Issuer) Callable
Logitech
Straumann
Swatch
20.25% 08/04/2024 CHF In Subscription
119434977
  • Product with sustainability features
  • (Issuer) Callable
Nestlé
Novartis
Roche
Swiss Life
Zurich Insurance
27.00% 07/10/2025 CHF In Subscription
119434974
  • Product with sustainability features
  • (Issuer) Callable
Swiss Life
Swiss Re
Zurich Insurance
18.00% 07/10/2024 CHF In Subscription
119434975
  • Product with sustainability features
  • (Issuer) Callable
Allianz
AXA
Generali
15.00% 08/04/2024 EUR In Subscription
121709318
  • (Issuer) Callable
Coca-Cola
Johnson & Johnson
Procter & Gamble
18.00% 07/10/2024 USD In Subscription
121709313
  • Quanto
  • (Issuer) Callable
Tesla
Volkswagen
26.00% 09/10/2023 q USD In Subscription

 

Harness the Swiss real estate market's potential to remain robust

  • The massive appreciation of the CHF and the resultant turbulence in 2015 had no direct impact on Swiss real estate stocks, with income and costs being predominantly 'home-grown'. Accordingly, these stocks put in a robust showing.
  • The VONCERT Open End on the "Swiss Property Equities" basket gives investors virtually 100% participation in the basket's potential share price gains or losses.
  • The basket contains the shares of six leading Swiss real estate firms.
  • Annual distributions: An annual compensation payment is defined to offset any dividend payments received.

 

COSI® Credit Linked Notes: fixed coupons with 100% capital protection

03/10/2022 09:50:49

 

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