Topics such as artificial intelligence (AI) and robotics may often seem somewhat futuristic, but in fact they are already ubiquitous today. For example, numerous applications that we consume on a daily basis use artificial intelligence to better process our requests: Every Google search, every online purchase, every interaction with a virtual „smart home“ assistant already uses the technology in the background. And yet we are only at the very beginning of a development that will seriously change the world in the coming years and decades.
To enable investors to invest in the future topic of AI & robotics, Raiffeisen Centrobank issues the AI/Robotics Bonus&Growth Certificate. The underlying is the underlyingindex Solactive® Robotics & AI EUR Index 3.5% AR, which tracks the performance of the shares of 30 companies whose business activities are wholly or partly focused on robotics or AI. A specificity of the index is that distributed dividends (after deduction of withholding taxes) are automatically reinvested in the index, but in exchange a fixed dividend of 3.5% p.a. is deducted from the index price (daily aliquot), facilitating a better certificate creation. Details on this index as well as the current list of index members can further be found on the website of the index provider Solactive® AG.
With this investment product without capital protection, investors participate at 100% and unlimited in the positive performance of the underlying index at the end of the term. The barrier of 50% of the index starting value (corresponds to a safety buffer of 50% at the issue date) serves as a protective mechanism. Provided that the barrier is never violated during the observation period, the certificate is redeemed at a minimum of 110% of the nominal amount – even if the index performance is negative at the end of the term. The certificate has a term of five years.
At the initial valuation date the closing price of the Solactive® Robotics & AI EUR Index 3.5% AR is fixed as starting value and the barrier (50% of the starting value) as well as the bonus level (110% of the starting value) are determined. At the final valuation date the closing price of the index is compared to the starting value and one of the following scenarios applies:
- SCENARIO 1: index performance ≥ +10%
In addition to the nominal value the positive index performance is paid out at the end of the term. This applies in any case – irrespective, if the barrier was violated during the term or not.
- SCENARIO 2: index performance < +10%
In case the Solactive® Robotics & AI EUR Index 3.5% AR index always quoted above the barrier of 50% of the starting value, redemption is effected at 110% of the nominal value. This means: if the index never declined by 50% or more during the term compared to its starting value, investors obtain the nominal value of EUR 1,100 at the maturity date.
Provided, the barrier of 50% of the Solactive® Robotics & AI EUR Index 3.5% AR starting value was touched or undercut at least once during the observation period, redemption at the maturity date is effected according to the index performance (percentage change from the starting value to the closing price at the final valuation date).
The issue price amounts to 100% (nominal value EUR 1,000) within the subscription period. Further information as well as the Key Information Document can be found on the product detail page.
Bonus Certificates – simply explained:
For any additional information you may require do not hesitate to contact us on +43 1 515 20-484.
The Team Structured Products of Raiffeisen Centrobank