Investment Idea

Express certificate on the STOXX Global ESG Leaders Select 50 EUR

Zurich Insurance Group is one of the top performers in the STOXX® Global ESG Leaders Select EUR 50 Index thanks to ESG rating, high dividend and low volatility. The new headquarters in Zurich is scheduled to open in 2020. PHOTO OF THE ZURICH INSURANCE GROUP

With 3% p.a., our investment idea offers an attractive return if the STOXX Global ESG Leaders Select 50 EUR Index tends sideways. The index tracks the performance of the 50 global ESG Leader stocks with the lowest volatilities and highest dividends. Recent research shows that companies with high sustainability ratings achieve higher long-term profitability with lower risk.

Sustainability is becoming an increasingly important topic, especially since the consequences of advancing climate change and shortages of resources are becoming ever-more visible. Consequently, issues such as environmental sustainability or an ethical approach to animals and resources are coming to the fore, leading to growing numbers of companies attempting to implement sustainability strategies. Contrary to common belief, investing in sustainability does not just bring about costs and limitations: it also has a positive effect on business in the long term, as economically smarter decisions are made and fewer resources are consumed.

50 global stocks from the STOXX Global ESG Leaders Index with the lowest levels of volatility and high dividend payments are selected and used for the STOXX® GLOBAL ESG LEADERS SELECT 50 EUR INDEX.

The component selection process first excludes all stocks whose three or twelve month historical volatilities are the highest. Among the remaining stocks, the 50 stocks with the highest twelve month historical dividend yields are selected to be included in the index. The composition of the index is reviewed on a quarterly basis.

STOXX® Global ESG Leaders Select 50 EUR Index price, 5-year view

Over the past five years, the price of the STOXX® Global ESG Leaders Select Index has traded at EUR 50 and EUR 173.39 respectively. It reached its high of EUR 200.02 in April 2015 and its low of 148.14 in February 2016. DATA BLOOMBERG

How the express certificate with memory works

The Credit Suisse express certificate on the STOXX® Global ESG Leaders Select 50 Price Index, with memory, is a bearer bond of Credit Suisse AG (the ‘issuer’). It matures on 30 June 2025, except in instances of early redemption. There is the opportunity for interest to be paid and the option of early redemption, dependent on the development of the STOXX® Global ESG Leaders Select 50 Price Index (underlying). Repayment at maturity is also dependent on the development of the underlying.

Interest payments

The underlying is reviewed on the observation date in question to ascertain whether it is at or above the interest barrier of 70.00% of the initial fixing. If this is the case, an interest amount of EUR 30.00 will be disbursed in arrears as a one-off payment for each certificate, plus any interest amounts that may not have been disbursed previously (memory effect). If this is not the case, no interest will be disbursed. In the event of early redemption, interest payments will not be made subsequently.

Opportunity for early redemption

The underlying is reviewed on the observation date in question to ascertain whether it is at or above the relevant observation level. If this is the case, the certificate will be repaid early at par value. Otherwise, the certificate will continue to run until the following observation date.

Redemption at maturity

The final fixing will determine whether the underlying is quoted at or above the final redemption level of 70.00% of the initial fixing. If this is the case, the redemption amount will be disbursed for each certificate. Otherwise, it will be redeemed at par value minus the negative development of the underlying between the initial and final fixing. Please note that any income from the underlying that may accrue prior to maturity will not be passed on to the holder of the certificate.

Express certificate with memory

Underlying STOXX® Global ESG Leaders Select 50 Price Index
Coupon 3.00% p.a.
Maturity 72 months
Issuer Credit Suisse
Barrier at maturity 70%
Issue price EUR 1,005.00
Subscription period Until 2 p.m. on 21 June 2019, early closing possible
Currency Euro
Express level Every 12 months = 100%

Your contact

Christopher Kumpas

CEO Picard Angst MEA

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