Swiss banking giant Credit Suisse has launched a new product that provides both an investment return, and contributes to charity.

The so-called Charity Notes give investors in Switzerland an opportunity to achieve a return on their investment and support a charitable cause at the same time. In conjunction with the Symphasis Foundation, selected projects aimed at combating youth unemployment in Switzerland will be supported.

The Charity Bonus Note is an alternative to investing in bonds and offers 100% capital protection. The Charity Yield Note offers conditional capital protection, as investors benefit from regular, fixed interest payments. Both notes enable investors to achieve a return and contribute to the fight against youth unemployment at the same time: 1 to 1.5% of the nominal value is donated to selected projects each year.

The Charity Bonus Note is a structured derivative with capital protection. It is based on a global portfolio of 20 underlying equities that Credit Suisse analysts expect to increase in value. The performance of each equity since issue (limited at 6%) is taken into consideration when calculating the total return on the portfolio. The total return is paid out as a coupon. In addition, an annual amount of 1% of the nominal value of the note is paid to the charity Symphasis each year. Even if the overall performance of the portfolio is negative, the investor receives repayment of at least 100% at maturity.

The Charity Yield Note is based on four equity indices: DJ EURO STOXX 50SM Index, S&P 500 Index, Nikkei 225 Index and SMI. Investors receive an annual coupon of 5.5%. In addition, 1.5% is distributed to the Symphasis Foundation each year. If one of the indices touches or falls below the predetermined barrier during the term, the repayment of the nominal amount may be reduced (conditional capital protection).

For both notes, the minimum investment is 1,000 francs, and the term is six years.

The beneficiary of the charitable contributions is the Symphasis Foundation, which was established in 2002 by Credit Suisse. It provides targeted support for sustainable social welfare projects in Switzerland and abroad. Credit Suisse bears all the administrative costs of the Symphasis charitable foundation.