Participation – The Julius Baer certificates
Participation products – how they work
Returns and risks vary with the price development of the corresponding underlying securities. Together with your investment advisor at Julius Baer, you can flexibly adjust the underlyings, the currency and expiration of a certificate to meet your specific needs. The simplest variant of a participation product is the tracker certificate. In addition, it is possible to structure variants with a risk buffer (Julius Baer Cushion certificates) or with above-average earnings potential.
Participation is the right investment solution if you
wish to optimize or diversify your portfolio so as to pursue opportunities in current or specialized investment themes or asset classes
expect the underlying security to perform well (for negative market expectations, products such as the short tracker certificate might be of interest)
are prepared to bear the risk of the underlying securities
Long-tracker-certificate
Risk and return correspond to the underlying security.
Short-tracker-certificate
Like long-tracker certificates, but with the opposite payout profile; i.e., when the underlying declines, the value of the product rises and vice versa.
Bonus-certificate
Bonus certificates offer unlimited participation in the price performance of the underlying security and conditional capital protection (until knock-in is hit).
Outperformance-certificate
Outperformance certificates enable the holder to participate disproportionately in a positive performance if the underlying security is above the strike price at expiry.
Airbag-certificate
An airbag certificate permits full participation in any price rise in the underlying security and buffer protection on the downside. If the underlying declines sharply, the certificate falls disproportionately and gradually approaches the price of the underlying.
Twin-Win-certificate
Twin-win certificates offer profit potential whether the market trades higher or lower. If the knock-in is touched during the life of the product, the certificate has the same risk profile as the underlying.
