New Bank Austria "Fonds GarantieAnleihe" bond with 100 percent
capital repayment1) at end of term
The new "Fonds GarantieAnleihe 2010-2017 Series 12" bond of Bank Austria is based on two renowned Austrian funds of Pioneer Investments Austria, which are pooled in a fund basket. The Pioneer Funds Austria (PIA) Trend Bond2) with its performance accounts for 40 percent of the fund basket while the PIA Austria Stock2) is taken into consideration with 60 percent. Thanks to this splitting of investment in European bonds and Austrian shares, the fund basket has a wide spreading, and yield potential as well as risks are spread to two investment categories – bonds and shares.
As, from a historical point of view, share investments offer higher yield potential, the average performance of the share fund has a slightly overweight position in this bond with 60 percent. However the performance of the two selected funds develops during the term, the "Fonds GarantieAnleihe 2010-2017" guarantees that capital is repaid at 100 percent of nominal value1) at the end of the term.
The "Fonds GarantieAnleihe 2010-2017 Series 12" bond has a term of seven years and is denominated in units of EUR1,000. Recommended minimum investment is EUR4,000. Investors requiring their capital before maturity can sell their Fonds GarantieAnleihe at the current market price. However, in this case, 100 percent repayment of capital is not guaranteed and therefore, share price losses are possible.
Average performance based on monitoring deadlines
At the beginning of the bond term, December 13, 2010, the respective starting level of the two funds is determined and the fund basket is created. In the basket calculation, the PIA Trend Bond accounts for 40 percent and the PIA Austria Stock for 60 percent. Afterwards, the respective fund price will be identified on seven fixed annual monitoring deadlines. The first monitoring takes place on December 6, 2011, the last one on December 6, 2017. Based on these levels, the average is calculated: The fund prices identified each year are added together and divided by the number of all monitoring dates, i. e. seven (= calculation of average). If the average performance of the fund basket shows an increase as compared to the starting level, this surplus will be paid in addition to the nominal value of EUR1,000 per unit at maturity, on December 13, 2017.
The two funds of the GarantieAnleihe
Being a bond fund, the Pioneer Funds Austria Trend Bond2) invests exclusively in government bonds of the euro zone. Only bonds with a long term (mostly seven to ten years of residual term) and a good financial rating (AAA to BBB) are bought. For bonds without rating, a comparable rating is drawn on. The fund is secured against considerable increases in bond interest, which would have negative effects on the price. Investment in shares in other investment funds is admissible for up to 10 percent of the fund volume.
Being a share fund, the Pioneer Funds Austria Austria Stock2) mainly invests in Austrian shares and securities similar to shares of Austrian issuers. In addition, convertible bonds and option bonds can be acquired for a smaller part.
1) By repayment of 100 percent of the nominal value at the end of the term by UniCredit Bank Austria AG
2) The published, complete and simplified prospectuses of the funds stated in their up-to-date version respectively, including all changes since first announcement (Trend Bond: Publication in the Amtsblatt zur Wiener Zeitung of September 30, 2004; Austria Stock: Publication in the Amtsblatt zur Wiener Zeitung of September 17, 2004) are available in electronic format on www.pioneerinvestments.at as well as the pay office UniCredit Bank Austria AG, Schottengasse 6-8, 1010 Vienna, free of charge.
Details of the bond issue:
Fonds GarantieAnleihe 2010-2017 Series 12 of UniCredit Bank Austria AG
|Offered:||from November 8, 2010, constant issues|
|Volume:||EUR22m (with the option of additional issues)|
|Denomination:||EUR1,000 (recommended minimum investment: EUR4,000)|
|Term:||7 years (value date: December 13, 2010, maturity: December 12, 2017)|
|Base value/fund basket:||40 percent PIA Trend Bond (ISIN: AT0000706601)|
60 percent PIA Austria Stock (ISIN: AT0000674908)
|Fund basket starting value:||December 13, 2010|
|Monitoring days:||December 6, 2011, December 6, 2012, December 6, 2013, December 9, 2014, December 7, 2015, December 6, 2016 and December 6, 2017|
|Redemption:||on December 13, 2017 at 100 percent of nominal value, plus participation in positive development of fund basket maturity value compared to fund basket starting value. The fund basket maturity value is the average value of the fund basket of seven annual monitoring days.|
|Early redemption:||Not possible|
|Listing:||Third Market of the Vienna Stock Exchange on December 27, 2010|
Enquiries: Bank Austria Press Office Austria
Matthias Raftl, Tel.: +43 (0) 50505 – 52809