Megatrends are major social, economic, political and technological changes that have the potential to change the world sustainably. They usually lead to fundamental social change and can shape our everyday lives permanently. Megatrends are particularly robust and can withstand temporary resets without losing their dynamics.
In order to enable investors to invest sustainably in megatrends, Raiffeisen Centrobank together with the renowned index provider STOXX Ltd. developed the ESG-compliant iSTOXX® Global Megatrends Select 50 Price EUR index, which comprises the following nine megatrends:
- Sharing economy
- Industry 4.0
- Smart cities
- Housing construction
- Next generation telecoms
- Silver economy
Investors who expect a positive development of this megatrend index, but at the same time want to protect a large part of their invested capital, may position themselves for this market scenario with the Megatrends Winner 90 % II.
At the end of the term investors participate at 100% in price gains of the underlying index. In case of price losses of more than 10% the capital protection of 90% applies at the end of the term.
At the initial valuation date (June 16, 2020) the closing price of the iSTOXX® Global Megatrends Select 50 Price EUR index is defined as the starting value. At the end of term (June 12, 2026) the performance of the index is determined and one of the following scenarios will apply:
- SCENARIO 1 – positive index performance
1:1 participation in the index performance, e.g.: index +30% → redemption: EUR 1,300
- SCENARIO 2 – negative index performance
a) … but ABOVE 90% of the starting value
1:1 participation in the index performance, e.g.: index -5% → redemption: EUR 950
b) … and BELOW 90% of the starting value
capital protection of 90% applies, e.g.: index -40% → redemption: EUR 900
During the term, the price of the certificate may fall below the capital protection level of 90% due to price fluctuations. The capital protection of 90% of the nominal value only applies at the end of the term.
The issue price amounts to 100% (nominal value EUR 1,000) within the subscription period. Further information as well as the Key Information Document please refer to the product detail page.
Details on the iSTOXX® Global Megatrends Select 50 Price EUR index as well as the current list of index members can be found on the website of the index provider STOXX Ltd.
Capital Protection 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