The Guarantee Certificate USD Global Water Winner enables investors to participate 100% in the positive performance of the S&P Global Water index up to a maximum of +25% in relation to the starting value. The certificate is suited to safety-oriented investors, who expect the index to post at least a moderate rise within in the next five years, and who also wish their investment to be 100% capital protected at the end of the term.
At the initial valuation date the closing price of the S&P Global Water index as of March 5,2020 and the cap (125% of the starting value) are determined. At the end of the term the performance of the index is evaluated and one of the following scenarios will apply:
- SCENARIO 1 – Index performance is POSITIVE
… and BELOW the cap of 125%
1:1 participation in the index performance,
e.g.: index +20% → redemption: USD 1,200
… but ABOVE the cap of 125%
Redemption at the maximum amount,
e.g.: index +50% → redemption: USD 1,250
- SCENARIO 2 – Index performance remains UNCHANGED or NEGATIVE
… and thus BELOW 100% of the starting value
100% capital protection applies at the end of the term,
e.g.: index -40% → redemption: USD 1,000
At the end of the term the investment is 100% capital protected by Raiffeisen Centrobank AG, i.e. during the term price fluctuations may occur, but at the end of the term the investor obtains at least 100% of the nominal value.
The certificate USD Global Water Winner is denominated in USD. If the cash flows from the certificate (repayment) are later converted into another currency, additional risks as well as opportunities arise from possible fluctuations of the currency price in relation to the nominal value.
Details on the S&P Global Water index as well as the current list of highest-weighted index members can be found on the website of the index provider S&P Dow Jones Indices LLC.
Further information as well as the Key Information Document can be found on the Product Page.
Capital Protection Certificates – simply explained:
For any additional information you may require do not hesitate to contact us on +43151520484.
The Structured Products Team of Raiffeisen Centrobank