These indices are designed to enable investors with Swiss franc as their reference currency to track the share price movements of leading global companies eliminating the need for FX conversion. This is particularly advantageous for investors seeking exposure to international equities while maintaining their portfolios in Swiss francs, as it simplifies performance comparison and risk management.
Although indices are typically associated with baskets of multiple securities, single stock indices are a well-established concept. They serve as important benchmarks and are often used as underlying assets for various financial instruments. Derivatives products based on single stock indices can offer different risk and payout profiles compared to direct investments in shares, such as providing capital protection or leverage.
Historical index values of the indices are available from July 31, 2015, and have been normalized to align with the price level of the original stock, expressed in Swiss francs. Local currencies are converted to Swiss francs with interbank FX rates for the intraday calculation and WM fixings for the end of day closing.
Raphael Cyna, Global Head of Payoff Structuring, at Bank of America: “Bank of America is proud to launch its second partnership with SIX on this new suite of indices. Carefully designed to enhance the economics of structured products, they provide Swiss investors with intuitive exposure to global single stocks by directly converting share prices to Swiss francs.”
Christian Bahr, Head Index Services & ESG, Financial Information, at SIX: “Bank of America’s decision to further expand our partnership reflects the strength of our collaboration and their continued confidence in the value we’re delivering together.”
For further information on the SIX Global Single Stock Indices, please click here.