Asset allocation funds
Our asset allocation funds let you diversify your investments among stocks, bonds, short-term holdings and the money market, according to your investor profile.
When the structured product reaches the end of its term, you get back all the money you initially invested. That means your capital is fully protected. In addition, if the value of the asset underlying the structured product (e.g., the stock or stock market index) goes up, you will also receive the corresponding gain. However, you won't lose any money if the underlying asset's value goes down.
Susan Brown wants to invest in the Swiss stock market index, the SMI. But she doesn't want to risk losing the money she has to invest. So she decides to place CHF 1,000 in a capital-protected structured product linked to the SMI.
The amount of money Susan will get back when the structured product matures will depend on both the SMI's performance and the product's participation rate in the SMI's performance. For example, if the participation rate is 100%, each time the SMI goes up by 1% the value of Susan's investment will increase by 1% (or CHF 10, which is 1% of her initial CHF 1,000 investment). Of course, if the SMI goes down, Susan's investment is not affected.
Therefore one of two things could happen when Susan’s investment matures: