Investment Ideas

Global equities remain resilient. Julius Baer’s balanced, currency-hedged and diversified investment solution offers compelling return potential in today’s volatile market environment – without full exposure to market risk. With an 18-month investment horizon, it represents a genuine alternative to the bond market.

Market opportunities in dynamic times

As 2025 draws to a close, global equity markets continue to defy expectations. Both US and European indices have benefited from improving economic sentiment, delivering solid returns. The key question for investors now is how to position portfolios wisely in an environment that remains uncertain and volatile – yet full of opportunity – to capture attractive returns without being fully exposed to market risk.

Balancing stable returns and reduced risk

With yields on traditional bonds continuing to fall, investor interest in alternative sources of income is rising. This broadly diversified investment idea provides the opportunity to stay engaged in international equity markets while maintaining a substantial risk buffer. Julius Baer’s investment approach incorporates a mechanism that cushions market setbacks up to a clearly defined level, while at the same time generating fixed, regular income. In turbulent markets such as today’s, this can represent an appealing alternative to the bond market.

A structured global solution

With an 18-month term and broad exposure to four leading international equity indices – the SMI, Euro Stoxx 50, S&P 500 and Nasdaq 100 – this attractive investment solution combines a sizeable risk buffer against market declines with the potential to earn guaranteed fixed monthly returns. Particularly appealing in the current environment is the callable feature, which allows for early redemption by the issuer and, in turn, a higher return. Issued in CHF, EUR and USD, the solutiont is currency-hedged, allowing you to align your investment precisely with your preferred reference currency.

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This content constitutes marketing material and is not the result of independent financial/investment research. It has been produced by Bank Julius Baer & Co. Ltd., Zurich, which is authorised and regulated by the Swiss Financial Market Supervisory Authority FINMA.

This content is intended for information purposes only and does not constitute advice, an offer or an invitation by, or on behalf of, Julius Baer to buy or sell any securities, securities-based derivatives or other products or to participate in any particular trading strategy in any jurisdiction.

Julius Baer does not accept liability for any loss arising from the use of this document.

This content may include figures relating to simulated past performance. Past performance, simulations and performance forecasts are not reliable indicators of future results.

For further details about risks and suitability, as well as important legal information, please consult the following link: IMPORTANT LEGAL INFORMATION

The current market environment offers opportunities but remains vulnerable to sudden corrections. Structural shifts and political risks add to the uncertainty. Callable Multi Barrier Reverse Convertibles provide a way to participate in market developments through coupons and barriers while at the same time making use of defined risk buffers.

Balancing risk and reward

This year has rewarded investors with impressive equity market gains, with numerous indices reaching record highs. At the same time, persistent geopolitical tensions, structural shifts in global trade, and unpredictable political measures are shaping the market backdrop. This mix of promise and uncertainty leaves many investors asking: how can one participate in potential returns without taking on full equity market risk?

Structured approach with predefined buffer

Against this backdrop, a new structured product emitted by Julius Baer can offer investors the opportunity to invest in a balanced way in today’s demanding market environment. The JB Callable Multi Barrier Reverse Convertible combines regular income potential with a predefined risk buffer, thereby offering the option to benefit from market developments without being fully exposed to equity risk. The structure also incorporates a degree of flexibility with respect to maturity, making it suitable for investors who value predictable income while seeking broad exposure to international indices.

Global opportunities with targeted risk control

The JB Callable Multi Barrier Reverse Convertible is available in three instances, each denominated in a different currency (USD, EUR, and CHF), allowing investors to tailor their exposure to their preferred reference currency while managing market and currency risks in a targeted manner. Broad diversification across regions and underlyings enhances the product’s international scope. If any of the underlyings touch or fall below their individual knock-in barriers of 65% during the 15-month lifetime of the product and close below their respective strike prices at maturity, investors receive an amount that takes into account the decrease of the underlying with the worst performance compared with its individual strike price.

More product details:

Product Details CHF

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This content constitutes marketing material and is not the result of independent financial/investment research. It has been produced by Bank Julius Baer & Co. Ltd., Zurich, which is authorised and regulated by the Swiss Financial Market Supervisory Authority FINMA.

This content is intended for information purposes only and does not constitute advice, an offer or an invitation by, or on behalf of, Julius Baer to buy or sell any securities, securities-based derivatives or other products or to participate in any particular trading strategy in any jurisdiction.

Julius Baer does not accept liability for any loss arising from the use of this document.

This content may include figures relating to simulated past performance. Past performance, simulations and performance forecasts are not reliable indicators of future results.

For further details about risks and suitability, as well as important legal information, please consult the following link: IMPORTANT LEGAL INFORMATION

Market uncertainties not only harbor risks - they can also be an opportunity. Learn how a new tracker certificate from Julius Baer uses short-dated put options on major US indices to create a steady income stream for investors aiming to diversify in today’s quickly shifting markets.

Invest defensively for optimal returns

Equity market volatility is expected to persist at elevated levels, punctuated by periodic spikes driven by ongoing uncertainty stemming from political developments and increased downside risks in the US economy. To capitalise on this heightened volatility, investors may consider selling equity put options, which offer attractive premiums. By adopting a defensive approach, this strategy has the potential to yield returns that surpass those of traditional money market investments, making it an attractive option for those seeking to navigate turbulent markets.

New put options strategy for dynamic markets

The issuance of short-dated equity options has experienced remarkable growth over the past five years, with a highly liquid daily market since 2022. As a result, these instruments now comprise approximately 50% of total option trading volumes in the United States. Building on this trend, a novel product is being introduced that offers access to a systematic options strategy focused on the S&P 500 and Nasdaq 100 indices, designed to deliver consistent premium income through the sale of short-dated put options.

Regular cash flow for your portfolio

The very short-term nature of the underlying options and the systematic investment methodology mean that the JB Tracker Certificate on the US Equity Daily Put Selling Index is a unique structure designed to provide an interesting alternative investment stream within a diversified portfolio. Further increasing the appeal of the product, investors receive a fixed quarterly pay-out that translates into an attractive annual yield on the nominal of their investment. The certificate will be listed in the secondary market.

More product details

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This content constitutes marketing material and is not the result of independent financial/investment research. It has been produced by Bank Julius Baer & Co. Ltd., Zurich, which is authorised and regulated by the Swiss Financial Market Supervisory Authority FINMA.

This content is intended for information purposes only and does not constitute advice, an offer or an invitation by, or on behalf of, Julius Baer to buy or sell any securities, securities-based derivatives or other products or to participate in any particular trading strategy in any jurisdiction.

Julius Baer does not accept liability for any loss arising from the use of this document.

This content may include figures relating to simulated past performance. Past performance, simulations and performance forecasts are not reliable indicators of future results.

For further details about risks and suitability, as well as important legal information, please consult the following link: IMPORTANT LEGAL INFORMATION

Prominent European banks like BNP Paribas, ING Groep, and Unicredit are trading at attractive valuations and offer generous dividend yields. Julius Baer has put an interesting one-year structured product into subscription that offers exposure to the aforementioned three stocks and capital protection.

While much of the market’s attention has been focused on US financials over the past decade, European banks are now ready to take centre stage. They are not only trading at cheaper valuations but also offer generous dividend yields. Furthermore, technically, the Stoxx Europe 600 Banks Index appears to be breaking out of a 15-year base, and earnings expectations are optimistic. Thus, the prospects for European banks are bright.

Three of the most prominent European banks are BNP Paribas, ING Groep, and Unicredit. All three are currently trading at attractive valuations, despite having reported robust profits for the fourth quarter of 2024.

BNP Paribas boasts a well-diversified business portfolio across attractive markets. Its credible dividend and earnings-per-share growth potential is underpinned by revenue initiatives and a comprehensive cost-savings programme.

ING Groep possesses a solid balance sheet that is characterised by continued improvements in loan loss reserves and a robust equity tier-1 ratio. The group has recently announced plans to distribute excess capital through special dividends and share buy-backs.

Unicredit has improved its earnings visibility following rigorous cost-cutting measures and a comprehensive restructuring programme in recent years. The company’s medium-term strategic objectives prioritise growth and value creation for shareholders.

For more risk-averse investors seeking yield and wanting to lock in returns, we have put an interesting one-year structured product into subscription that offers exposure to the aforementioned three stocks. Besides an attractive guaranteed coupon, the downside risk is reduced by a quarterly lock-in feature that can convert the structure into a 100%-capital-protected product.

For further information about this product click here:

Product Details CHF

Product Details EUR

Product Details USD

IMPRINT

This content constitutes marketing material and is not the result of independent financial/investment research. It has been produced by Bank Julius Baer & Co. Ltd., Zurich, which is authorised and regulated by the Swiss Financial Market Supervisory Authority FINMA.

This content is intended for information purposes only and does not constitute advice, an offer or an invitation by, or on behalf of, Julius Baer to buy or sell any securities, securities-based derivatives or other products or to participate in any particular trading strategy in any jurisdiction.

Julius Baer does not accept liability for any loss arising from the use of this document.

This content may include figures relating to simulated past performance. Past performance, simulations and performance forecasts are not reliable indicators of future results.

For further details about risks and suitability, as well as important legal information, please consult the following link: IMPORTANT LEGAL INFORMATION