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Bonus Certificates on Single Stocks

After strong gains in equities this year, investors may be cautiously hunting for further upside – bonus certificates on individual equities could be the answer. In contrast to direct investment, an investor has a potential bonus-yield on top of similar upside potential on the underlying equity, as well as additional downside protection.

Investors holding the underlying equity can also consider selling the stock and entering into a bonus certificate in order to reduce the downside risk of their investment. This type of strategy may be particularly suited if the investor expects the underlying stock to move sideways or moderately higher.

Based on this view, we have currently bonus certificates on the following Hold-rated stocks in subscription:

  • AXA (Price/Target: EUR 23.34/EUR 23.00)
  • BASF SE (Price/Target: EUR 71.79/EUR 70.00)
  • Daimler (Price/Target: EUR 56.67/EUR 55.00)
  • Total (EUR 49.99/EUR 55.00)
  • UBS (Price/Target: CHF 12.92/ CHF 12.00).


Product Highlights

  • Bonus level of 108% - 110%
  • Risk buffer of 21.2% - 31%
  • 100% upside participation in the underlying above the bonus level, no cap


How it Works

Investors receive at maturity the greater of the bonus level (between 108% and 110%, in per cent of the initial level of the stock) or the underlying’s performance, if it never touches or falls below the barrier (between 69.00% and 78.80%, in per cent of the initial level of the stock) during the product’s lifetime.

However, if the underlying is quoted at or below the barrier during the lifetime of the product, the bonus certificate trades one-to-one with the stock (physical settlement if below strike). In this case, the investor directly participates in any move up or down from the barrier level.

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