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Are you ready to leave the capital protection area, but don't want to take the full market risk? Bonus certificates offer attractive returns with partial protection. Even when stock market prices are moving sideways. Raiffeisen's Bonus&Safety certificates unite:
- Attractive returns even in sideways-trending or moderately falling markets
- Fixed interest payments during the term or final bonus payment
- Comfortable safety buffer of at least 50% at the beginning of the term
- Please always consider all opportunities and risks when investing in securities.
Bonus&Safety with fixed interest - how does it work?
⛵ Always water under the keel - thanks to safety buffer and fixed interest payments
Still waters are known to be deep, but in troubled waters dangers can hide just below the surface.
Regardless of whether 🐮 bulls or 🐻 bears are stronger, with bonus&safety certificates with a fixed interest rate, investors receive interest payments regardless of the performance of the underlying. Thanks to the attractive combination of fixed interest and partial hedging, attractive returns can be achieved even in moderately falling markets.
Depending on their need for safety, investors can choose between a higher potential return or a lower barrier - if the barrier is 39%, for example, this corresponds to a safety buffer of 61%.
➨ To stay on course even in volatile market phases, the certificates of the Bonus&Security series with fixed interest rate and partial protection are an excellent solution.
⚙ Transparent functionality:
At the beginning of the term:
The starting value of the underlying(s) is/are determined on the initial valuation date and the barrier(s) is/are calculated on this basis. The amount of the fixed interest rate is specified from the beginning.
During the term:
• An interest amount is paid out annually.
• During the observation period, the barrier is compared with the underlying prices.
At the end of the term:
• A) Redemption at 100% of the nominal amount if the barrier has never been touched or undercut. This also corresponds to the maximum redemption at the maturity date.
• B) Payment on the redemption date is according to the performance* of the underlying if at least one underlying price was quoted at or below its respective barrier. In case of several underlyings, redemption corresponds to the worst performance (*percentage performance from the starting value to the final valuation date).
The annual fixed interest rate is paid out regardless of the performance of the underlying.
The maximum repayment at the end of the term remains limited to 100% of the nominal amount in every scenario.
Bonus&Safety with bonus amount at the end of the term
⛵ Picking up speed with the chance of higher returns
The possibility of achieving higher investment targets without foregoing a partial protection mechanism is created by Bonus&Safety certificates with a terminal bonus payment.
These certificates have the same partial protection mechanism as those with a fixed interest rate, but differ from them in one important detail: The yield opportunity (bonus payment) is now dependent on whether the barrier is touched or not. However, this additional risk of loss is compensated for with a higher chance of return.
⚙ Transparent functionality:
At the beginning of the term:
The starting value of the underlying(s) is/are determined on the initial valuation date and the barrier(s) and the respecitve bonus level is/are calculated on this basis.
During the term:
• During the observation period, the barrier is compared with the underlying prices.
At the end of the term:
Whether the bonus amount is paid out at the end of the term depends on the performance of the underlyings. One of the following scenarios occurs on the final valuation day:
SCENARIO 1: Underlyings always quoted ABOVE the barrier.
If the prices of the underlyings always quoted above the respective barrier during the observation period, the redemption amount is the nominal amount plus the bonus amount. This amount also represents the cap/maximum amount (= maximum payout amount).
SCENARIO 2: The barrier is TOUCHED or undercut by at least one underlying.
If an underlying has breached the respective barrier, payment on the redemption date is made according to the performance* of the underlying. (*percentage development from the starting value to the closing price on the final valuation date).
Even if the barrier is touched or undercut, the maximum payout amount remains limited and investors do not participate in price increases above the cap.
An important parameter that must be taken into account for bonus certificates with bonus payments at maturity it the so called agio. This indicates how far the price of the certificate is above that of the underlying asset. If a barrier is breached, the value of the investment falls by at least the amount of the agio as a result of the breach.
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