Banking on the earnings opportunities of three leading equity indices with capital security:
The new Weltaktienindex GarantieAnleihe of Bank Austria
- Investing worldwide with EURO STOXX 50, S&P 500 and NIKKEI 225: Retroactive index weighting increases earnings opportunities
UniCredit Bank Austria is now offering the new Weltaktienindex GarantieAnleihe 2015–2022 with an index basket comprising the EURO STOXX 50, S&P 500 and NIKKEI 225. The bond also offers capital security at maturity.
"This bond offers interesting opportunities on the equities markets in these times of low interest rates. The indices in the basket track the market developments on the most important stock exchanges in the world. The investment horizon of seven years means investors benefit from long-term economic growth, while short-term fluctuations in economic activity are less significant. The capital security also significantly limits the risk of holding the investment to the end of the whole term", emphasised Helmut Bernkopf, Bank Austria Director for Private and Corporate Customers.
The change between the start and end readings are assessed for each individual index to measure performance. The index with the best performance is weighted the highest at 50 percent. The index with the second-best performance is weighted at 30 percent and the index with the third-best performance is included at 20 percent. This retroactive weighting increases the earnings opportunities. Investors participate 100 percent in any positive performance of the index basket; the maximum earnings opportunity in this respect is 56 percent, which means the maximum repayment amount can total 156 percent of the nominal amount.
The performance of the equity market is influenced significantly by the development of corporate earnings, which in turn are affected by economic developments. The investment horizon of seven years means investors benefit from long-term economic growth, while any short-term fluctuations in economic activity are less significant.
Economic trends in a country can develop differently for a time, certainly on a regional basis, within today’s dominating global economic cycles. These three indices diversify the product geographically into the three leading economic regions.
The indices comprise the largest companies in the given countries, many of whom are known brands and global businesses. So investors not only benefit from success in their own home markets, but also from growth opportunities in other important regions with the experienced management teams of established firms.
In the event the performance of the underlying index basket is negative, the bond has a capital security guarantee of 100 percent at the end of the term. This means that the bond will be paid back at least at the nominal amount of EUR 1,000 per bond. The capital is invested for a total of seven years, and the bond can be sold under normal market conditions at its current price.
Details on the issue:
Weltaktienindex GarantieAnleihe 2015–2022 Series 98 from UniCredit Bank Austria AG
Issuer: UniCredit Bank Austria AG
Underlying instrument: Index basket comprising the EURO STOXX 50, S&P 500 and NIKKEI 225
Weighting: Weighted based on performance of indices: 50%, 30%, 20%
Subscription period: 28 September 2015 to 30 October 2015 (2:00 pm) - except a closure ahead of time
Redemption: 3 November 2022
Issue price: 100.00% + 3% front-end load
Denomination: EUR 1000
Observation dates: 30 October 2015, 20 October 2022
Listing: Third Market of Vienna Stock Exchange
Fees and charges: Custodial fee: 0.235% p.a. plus 20% VAT on the market value, no less than EUR 3.92 p.a. plus 20% VAT per securities position; but no less than EUR 26.28 + 20% VAT per securities account.
Selling fees: 0.7% of the sale value, but no less than EUR 23,50
The information on the Weltaktienindex GarantieAnleihe 2015–2022 Series 98 is product information only and does not constitute investment advice or an investment recommendation, a product recommendation, an offer or solicitation to buy or sell this bond, or a solicitation to make an offer.
It is intended solely as introductory information and is not a substitute for advice provided on the basis of the investor’s individual circumstances and knowledge. Every capital investment involves a certain degree of risk. The value of the investment and the earnings generated by the investment can change suddenly and considerably during the term and therefore cannot be guaranteed.
There is a possibility that the investor may not get back the total amount of capital invested if the investment is not held for the entire period to maturity.
UniCredit Bank Austria Media Relations
Matthias Raftl, Tel.: +43 (0) 5 05 05-52809;