The new brochure by Raiffeisen Centrobank AG explains the most important product categories of investment certificates. The folder is suitable for beginners as well as experienced investors and investment consultants, who aim to extend their certificates knowledge. Readers of this work await over 70 pages of conceptual definitions of the certificates world, product functionalities, sample calculations as well as opportunities and risks involved with the different types of certificates.
Capital Protection Certificates offer full protection of the invested capital at the end of the term and enable the investor to participate at the same time in the performance of shares, indices or commodities. Depending on how the certificate is structured, investors participate either in the performance of the underlying and/or generate interest income.
Bonus Certificates combine the opportunity to generate sound returns with partial protection of the invested capital down to the barrier. This product category bears less risk than a direct investment into the underlying (share, index or commodity), and qualifies for almost every market phase.
Express Certificates provide the opportunity for early termination at a predefined termination amount several times during the term if the underlying quotes at or above the termination level at any of the valuation dates. If the underlying quotes below the termination level, the term is extended and the potential termination amount increases.
Reverse Convertible Bonds combine an attractive fixed interest rate with a short term. While classic Reverse Convertible Bonds generate yields in slightly rising markets, Barrier Reverse Convertible Bonds even offer profit opportunities in moderately falling markets. Investors in Reverse Convertible Bonds are prepared to become shareholders of the underlying share in a worst-case scenario.
With a Discount Certificate, the investor acquires the underlying at a discount. Thus Discount Certificates are traded at a discount compared to the underlying and quote below the underlying's market price. In return for the discount the investor's profit participation is limited by the cap.
Index/Participation Certificates enable investors to realise a rising (long) or falling (short) market expectation in a simple and transparent way. With an Index Certificate investors participate directly in the underlying index's performance. Participation Certificates mirror the performance of a commodity or a share basket 1:1. If the underlying quotes in a currency that is different to the certificate's currency or the underlying is a commodity future, there may be deviations from mirroring the 1:1 performance.
Warrants enable investors with a high risk appetite to benefit above average and at little capital expenditure in rising or falling prices of the underlying. A warrant enables investors with the right buy (call) oder sell (put) an underlying at the predetermined price during a definite period of time (American) oder a certain point in time (European).
Factor Certificates enable investors to participate with a leverage effect in the underlying's performance. The certificates have a constant leverage factor; no knock-out and are open-ended. The underlying of a Factor Certificate is usually a share, an index or a commodity.
Turbo Certificates enable investors with a high risk appetite to participate at a little capital expenditure in rising (long) or falling (short) underlying's price movements. Due to their simple functionality, these leverage products are suitable for those investors who wish to realize their market opinion quickly and transparently. If the investor's market expectation fails to come true, the investor can suffer a total loss of the invested capital.
Express-Zertifikate entwickelten sich auch in stabilen bzw. sogar leicht fallenden Märkten seit 2011 mit einer durchschnittlichen Rendite von rund 8 % (entspricht 6,15 % p.a.) beachtlich.
Die Barriere, welche ausschließlich am Laufzeitende beobachtet wird, wurde bei keinem der betrachteten Express-Zertifikate, die mit einem anfänglichen Sicherheitspuffer von zumindest 35 % emittiert wurden, durchbrochen.