Participation products - Julius Baer Certificates

How participation products work With participation products, you participate in the performance of individual underlying securities, indices or any basket of underlying securities.

How participation products work

Returns and risk are determined by the performance of the underlying securities. The underlying assets, currency and expiry of a certificate can be adjusted to meet your needs. The simplest variant of a participation product is the long-tracker certificate. There are also variants with, for example, risk buffers or disproportionate earnings potential:

Participation products are the ideal investment solution if you

• wish to enhance or diversify your portfolio with investments in special or current investment topics or asset classes;
• expect a positive performance by the underlying security (in the event of negative market expectations, other products such as a short-tracker certificate are more suitable);
• 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.