Increasing tensions in the trade conflict between China and the US are currently putting pressure on markets. As this puts even more strain on already weak global economic growth, equity investors are hoping for stronger support from central banks. Particularly in a market environment characterized by uncertainty, high-dividend stocks enjoy particular popularity.
Security-oriented investors, who expect a positive performance of the STOXX® Global Select Dividend 100 Index over the next 5 years, while wanting to protect a large portion of their invested capital, can position themselves with the dividend stock Winner V 95% for this market scenario.
The certificate enables investors to participate at 100% in the performance of the underlying index up to a maximum of +25%. Investors only participate in losses up to -5% as the capital protection of 95 % applies at the end of the term. The certificate has a term of 5 years.
At the initial valuation date the starting value of the underlying index (closing price as of July 25, 2019) is determined.
At the end of term the performance of the index is determined and one of the following scenarios will apply:
- SCENARIO 1 – positive index performance
The performance of the index up to +25% in comparison to the starting value will be paid out 1:1 in addition to the nominal amount at maturity. The maximum repayment amount is limited to EUR 1,250 per nominal amount. Investors do not participate in price gains above +25%.
- SCENARIO 2 – unchanged or negative index performance
Investors also participate in a slightly negative index performance at the end of the term in a ratio of 1:1. However, in the case of price losses of more than 5%, the capital protection of 95% applies at the end of the term. In this case, the payment will be effected at 95% of the nominal amount (equivalent to EUR 950 per nominal amount) at maturity.
The 95% capital protection by Raiffeisen Centrobank AG only applies at maturity, i.e. during the term the certificate price may drop below 95%, but the investor obtains at least 90% of the nominal value at the end of the term. Further information as well as the Key Information Document please refer to the product page.
Capital Protection Certificates – simply explained:
Please adjust your cookie settings to allow YouTube videos or start the video here: External link to the video on YouTube
For any additional information you may require do not hesitate to contact us on +43151520484.
The Structured Products Team of Raiffeisen Centrobank