Credit Suisse has developed the Credit Suisse Global Nanotechnology Index, which focuses on companies offering nanotechnology products, and has launched two structured products based on th
Credit Suisse has developed the Credit Suisse Global Nanotechnology Index, which focuses on companies offering nanotechnology products, and has launched two structured products based on the index to allow investors to benefit from this sector’s potential growth.
Nanotechnology is defined as an enabling technology stemming from changes in the intrinsic characteristics of materials when size scales are reduced to the nanometre level (one nanometre is one billionth of a metre).
Processes at the nanometre level enable the creation of materials with new properties. Some early applications include cold-resistant and waterproof clothing, anti-graffiti wall coatings, mud-resistant car bodies, organic light-emitting diode-based televisions and transparent solar panels.
Credit Suisse forecasts annual growth of between 10 and 25 per cent by 2010 in five sectors, nano materials, nano information technology, nano healthcare, nano tools, and nano energy/other, on which the index is based.
The Credit Suisse Global Nanotechnology Index series offers investors exposure to 25 stocks representative of the nanotechnology universe, consisting of the largest companies in each of the five sectors, based on market capitalisation and other criteria including free float and daily traded volume. Companies must also achieve more than 10 per cent of their sales in nanotechnology or display leadership in the field.
The index is rebalanced every six months to select new market leaders in each sector, making it possible to react to corporate activities such as IPOs and new initiatives from existing firms.
The Credit Suisse Global Nanotechnology Index is designed to offer a tradable and investible indicator that reflects the significant growth potential of the markets for nanotechnology.
Credit Suisse is offering two new structured products based on the index and catering for different risk-return profiles. The more conservative CPUPlus allows investors to benefit from capital protection at maturity, while retaining the opportunity to participate in positive performance of the index.
The return paid at maturity depends on the change in the index during the term of the CPUPlus. This is assessed each quarter, with the three best quarterly performance values of the underlying index being substituted by a predefined value.
The CertificatePlus offers investors 100 per cent of the positive performance of the underlying index at maturity, and they receive the return of their original investment in full provided that during the term the index does not reach predefined barrier values. If the index reaches its barrier at least once during the term, investors will continue to participate in the positive performance of the index, but without any minimum repayment guarantee.