The certificate USD MSCI Emerging Markets Bonus&Growth is based on the MSCI Emerging Markets index.
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 54% of the index’ starting value (corresponds to a safety buffer of 46% 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 100% 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 Emerging Markets index is fixed as starting value and the barrier (54% of the starting value) is 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 POSITIVE
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 UNCHANGED or NEGATIVE
MSCI Emerging Markets index always quoted above the barrier of 54% of the starting value ► redemption is effected at 100% of the nominal value, this means: if the index never declined by 46% or more during the term compared to its starting value, investors obtain the nominal value of USD 1,000 at the maturity date.
MSCI Emerging Markets index touched or undercut the barrier of 54% 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 certificate USD MSCI Emerging Markets Bonus&Growth quotes in USD. If the cash flows from the certificate are subsequently converted into another currency, additional risks as well as opportunities arise from possible exchange rate fluctuations.
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