NEW YORK, June 19, 2018 /PRNewswire/ -- Credit
Suisse AG announced today that, effective at the open of trading on
June 26, 2018, it will reduce the
Daily Investor Fee Factor for its VelocityShares™ VIX Short Term
ETNs ("VIIX" or the "ETNs") as follows:
|
Current
|
New
|
Daily Investor Fee
Factor
|
0.89%
|
0.75%
|
The Daily Investor Fee Factor is used to calculate the Daily
Investor Fee, which in turn reduces the Closing Indicative Value on
each calendar day. The Daily Investor Fee reduces the return (or
increases the loss, as applicable) on the ETNs, as set forth in the
Pricing Supplement for the ETNs accompanying this media release. On
any calendar day, the Daily Investor Fee for the ETNs will be equal
to the product of (1) the Closing Indicative Value of the ETNs on
the immediately preceding calendar day times (2) the Daily
ETN Performance of the ETNs on the calculation day times
(3)(a) the Daily Investor Fee Factor divided by (b)
365. Once the Daily Investor Fee Factor is reduced, Credit Suisse
AG may not, without the consent of each affected holder as set
forth in the Prospectus, increase the Daily Investor Fee
Factor.
Credit Suisse AG also announced that, with respect to new
issuances of VIIX, it will waive the creation fee, effective
immediately. Notwithstanding the foregoing, Credit Suisse AG may
reinstate the creation fee at any time in the future and if so
reinstated, may from time to time increase or decrease such fee
without notice to the public.
The ETNs are senior medium-term notes of Credit Suisse AG, the
return on which is linked to the performance, before fees and
expenses, of the S&P 500 VIX Short-Term Futures™ Index ER (the
"Index"). The Index is designed to provide investors with exposure
to one or more futures contracts on the CBOE Volatility
Index® (the "VIX Index"). The Index targets a constant
weighted average futures contracts maturity of one month.
None of the other exchange traded notes issued by Credit Suisse
AG are affected by this announcement.
The ETNs are subject to fees. If the level of the Index
decreases or does not increase sufficiently to offset the sum of
the Daily Investor Fees (and in the case of Early Redemption, the
Early Redemption Charge) over the term of the ETNs, the payment on
the ETNs will be less than the initial investment amount of the
ETNs at maturity, upon early redemption or acceleration of the
ETNs.
The ETNs are intended to be trading tools for sophisticated
investors to manage daily trading risks. They are designed to
achieve their stated investment objectives on a daily basis, but
their performance over longer periods of time can differ
significantly from their stated daily objectives. The ETNs are
riskier than securities that have intermediate or long-term
investment objectives, and may not be suitable for investors who
plan to hold them for longer than one day. Accordingly, the ETNs
should be purchased only by knowledgeable investors who understand
the potential consequences of investing in volatility indices and
of seeking inverse or leveraged investment results, as applicable.
Investors should actively and frequently monitor their investments
in the ETNs, even intra-day.
An investment in the ETNs involves significant risks. For
further information regarding these risks, please see the section
entitled "Risk Factors" in the Pricing Supplement.
Credit Suisse has filed a registration statement (including a
prospectus) with the Securities and Exchange Commission, or SEC,
for the offering to which this media release relates. Before you
invest, you should read the applicable Pricing Supplement, the
Prospectus Supplement dated June 30,
2017 and the Prospectus dated June
30, 2017 that Credit Suisse has filed with the SEC for more
complete information about Credit Suisse and the ETNs. You may
obtain these documents without cost by visiting EDGAR on the SEC
website at www.sec.gov or clicking the hyperlinks below:
Pricing Supplement for VIIX dated June 8,
2018:
https://www.sec.gov/Archives/edgar/data/1053092/000095010318007255/dp92090_424b2-a51.htm
Prospectus Supplement and Prospectus dated June 30, 2017:
http://www.sec.gov/Archives/edgar/data/1053092/000104746917004364/a2232566z424b2.htm
Press Contacts
Azar Boehm, Credit Suisse AG,
telephone +1 212 538 3953, azar.boehm@credit-suisse.com
Credit Suisse ETNs
Telephone +1 800 320 1225,
ETN.Desk@credit-suisse.com
Credit Suisse AG
Credit Suisse AG is one of the
world's leading financial services providers and is part of the
Credit Suisse group of companies (referred to here as 'Credit
Suisse'). Our strategy builds on Credit Suisse's core strengths:
its position as a leading wealth manager, its specialist investment
banking capabilities and its strong presence in our home market of
Switzerland. We seek to follow a
balanced approach to wealth management, aiming to capitalize on
both the large pool of wealth within mature markets as well as the
significant growth in wealth in Asia
Pacific and other emerging markets, while also serving key
developed markets with an emphasis on Switzerland. Credit Suisse employs
approximately 46,370 people. The registered shares (CSGN) of Credit
Suisse AG's parent company, Credit Suisse Group AG, are listed in
Switzerland and, in the form of
American Depositary Shares (CS), in New
York. Further information about Credit Suisse can be found
at www.credit-suisse.com.
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SOURCE Credit Suisse AG