UniCredit has released on the market today a new series of 14 Memory Cash Collect Worst Of in addition to the more than 250 investment certificates offered by the bank and listed on the regulated MTFs of the Italian Stock Exchange (SeDeX and EuroTLX). The new products have baskets made up of three or four Italian and international shares as underlying, a maturity of 2 or 3 years (December 2023 and December 2024) and quarterly conditional premiums with memorandum effect, ranging from 1% to 4% depending on of the instrument.
How do they work?
Memory Cash Collect Worst Of allow investors to receive periodic rewards in the event that the value of the underlying stock with the worst performance in the basket (Worst-Of characteristic), on the quarterly observation dates, has a value greater than the barrier level, placed for this emission between 50% and 70% of the initial value. Thanks to the memory effect, any unpaid premiums are not lost but will be paid later if, on one of the subsequent observation dates, the payment condition is met. Furthermore, starting from June 2022, in the event that the value of the underlying stock with the worst performance in the basket reaches a value higher than the initial value, the certificates are redeemed early, with an amount equal to the nominal value (100 euro) plus the premium.
If the certificate has not been redeemed early, at the time of maturity (i.e. December 2023 or December 2024) two scenarios are possible. If the worst performing underlying stock in the basket has a value equal to or greater than the barrier value, the product redeems 100 euros in addition to the premium. Otherwise, if the underlying stock with the worst performance in the basket has a value below the barrier, the certificate will redeem an amount proportional to the performance of the underlying stock, which is part of the basket, with the worst performance (<50 euros in the case of the barrier placed at 50% and <70 euros in the case of the barrier placed at 70%).
A wide range of underlyings with a wide choice of sectors
In this new issue we find a wide range of assortment that covers different sectors and allows to obtain a good degree of diversification within a portfolio. For those wishing to invest in the technology sector, the Memory Cash Collect Worst of on the basket formed by Amazon, Netflix, Microsoft and Nvidia (ISIN DE000HB15GK2) allows you to take exposure to leading companies in e-commerce, video streaming, graphics cards and processors. An increasingly important segment nowadays given the growing dependence on technology. The instrument, whose price is at par (letter at 100), has a quarterly premium of 2.2% and a barrier of 60%, maturing on 19 December 2023.
The insurance sector should benefit from an environment of rate normalization in the event of a return of inflation, and the Memory Cash Collect Worst of (ISIN DE000HB15GE5) allows you to gain exposure to the sector while maintaining a good degree of geographical diversification. The instrument (whose letter at current prices is 99.9) selects the best players at European level in the insurance sector such as Allianz, Assicurazioni Generali and AXA. The quarterly premium is 1%, the minimum required for this issue, and the barrier placed at 60%. The deadline is December 12, 2024.
To focus on the diffusion of the electric in the automotive field, the certificate with ISIN can be used DE000HB15GN6 which also deals at a discount (letter of 91.3). The basket consists of four stocks: two companies specializing in the production of electric cars (Tesla and NIO), one of batteries (Varta) and one of automotive transport service (Uber). The instrument boasts a premium of 4%, the highest of this issue, and the very deep barrier is set at 50% (maturity 12 December 2024).
It is possible to view information on all the products updated in real time on the site www.investimenti.unicredit.it