Many investors are generally interested in the stock market, but do not have the appropriate risk tolerance to actually hold shares in their securities deposit. Capital Protection Certificates can be a solution for this situation: they allow participation in rising stock prices while at the same time (partly) protecting the invested capital.
The voestalpine Winner 90% is suited for investors who expect the price of the voestalpine AG share to rise over the next 5 years but also seek protection for part of their invested capital (capital protection at 90% of the nominal value).
Investors participate in the positive performance of the underlying share up to the cap of 130%. In case of a negative performance of the voestalpine share of more than -10%, the capital protection of 90% applies at the end of the term.
At the initial valuation date the closing price of the voestalpine share is defined as the starting value and the cap (130% of the starting value) is determined. At the end of term the performance of the voestalpine share is evaluated and one of the following scenarios will apply:
- SCENARIO 1 – positive share performance
a) … and BELOW the cap of 130%
1:1 participation in the share performance, e.g.: share +20% → redemption: EUR 1,200
b) … but ABOVE the cap of 130%
Redemption at the maximum amount, e.g.: share +50% → redemption: EUR 1,300
- SCENARIO 2 – negative share performance
b) … but ABOVE 90% of the starting value
1:1 participation in the share performance, e.g.: share -5% → redemption: EUR 950
a) … and BELOW 90% of the starting value
capital protection of 90% applies, e.g.: share -40% → redemption: EUR 900
At the end of the term the investment is 90% 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 90% of the nominal value in the worst case.
Further information as well as the Key Information Document can be found on 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
The product described herein is subject to and governed by the Base Prospectus (including all supplements and amendments thereto) approved by the Austrian Financial Market Authority (FMA). The Base Prospectus has been deposited at the Oesterreichische Kontrollbank AG, published at www.rcb.at/securitiesprospectus and contains the risks and terms and conditions of the product.
Additional information may also be obtained from the key information document of the product published at www.rcb.at. Raiffeisen Centrobank AG is subject to supervision by the FMA and the Austrian National Bank as well as the European Central Bank within the Single Supervisory Mechanism (Council Regulation (EU) No 1024/2013).