The Credit Suisse Investment Foundation has launched a new Pillar 3 pension solution, CSA Swiss Index Protected.
The company said that the newest member of the structured product family for personal pension provision is specifically designed to meet the needs of security-conscious investors. It combines capital protection and a minimum income with the potential returns offered by participation in the Swiss Market Index SMI.
CSA Swiss Index Protected was developed in association with the Credit Suisse Privilegia Pillar 3 Pension Foundation. This new pension product combines the advantages of secure bank-account savings with the additional potential returns that equity investments can generate.
The company said that the solution allows Pillar 3a savers to participate in a positive Swiss Market Index SMI performance. Investors benefit from a minimum return of 7.5% at the end of the product’s five-year term, irrespective of the index’s performance. With a 40% participation in the positive performance of the Swiss Market Index SMI – the definitive participation rate will be set on December 21, 2007 – investors are also protected in the event that their capital investment performs poorly. The upper limit for returns is open-ended.