The certificate MSCI Europe Value Bonus&Growth is based on the sustainability index MSCI® Europe Value Index (EUR).
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 55% of the index starting value (corresponds to a safety buffer of 45% 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 105% 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 MSCI® Europe Value Index (EUR) is fixed as starting value and the barrier (55% of the starting value) as well as the bonus level (105% 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 ≥ +5%
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 < +5%
In case the MSCI® Europe Value Index (EUR) index always quoted above the barrier of 55% of the starting value, redemption is effected at 105% of the nominal value. This means: if the index never declined by 45% or more during the term compared to its starting value, investors obtain the nominal value of EUR 1,050 at the maturity date.
Provided, the barrier of 55% of the MSCI® Europe Value Index (EUR) 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).
Further information as well as the Key Information Document can be found on the product detail page.
Bonus Certificates – simply explained:
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The Structured Products Team of Raiffeisen Centrobank