UniCredit launches a new issue of 15 Cash Collect Worst Of Maxi Conditional Initial Bonus certificates. These products are added to the other Cash Collects issued by the Italian bank in recent months traded on the SeDeX segment of the Italian Stock Exchange.
The new Cash Collect Maxi Premiums have compound baskets as underlying from three or four Italian and international actions and cover a wide variety of sectors. The maturity is set at approximately three years (May 16, 2024) and they pay, in addition to the maxi initial premium which can reach up to 18%, a conditional quarterly fixed premium ranging from a minimum of 1.15% to a maximum of 4, 80% depending on the underlyings. The Barrier level varies from 50% to 70% of the initial value.
How Maxi Cash Collects work
The new Cash Collect Maxi Premiums have been designed for investors who have need to optimize the tax structure of the portfolio recovering any losses in the portfolio thanks to the maxi initial premium. If on the first observation date the underlying stock, which is part of the basket and with the worst performance (Worst Of characteristic) has a value equal to or higher than the Barrier level, the investor will receive a premium between 10 and 18%.
After the first observation date placed three months after the issue date, on subsequent valuation dates, also quarterly, Cash Collect Maxi Premio certificates allow you to receive quarterly rewards if the underlying stock, which is part of the basket and with the worst performance, has a value equal to or above the barrier level. Furthermore, starting from the sixth month (February 2022) the certificates can be redeemed early if, on the observation dates, the value of the underlying share, which is part of the basket and with the worst performance, is equal to or greater than the Initial value.
In the end, if the certificate expires, two scenarios are possible: if the value of the underlying share, which is part of the basket and with the worst performance, is equal to or greater than the barrier level, the instrument redeems the nominal amount in addition to the premium; if the value of the underlying share, which is part of the basket and with the worst performance, is below the barrier level, a value is paid that is commensurate with the performance of the underlying share, which is part of the basket and with the worst performance: in this case, the certificates do not protect the invested capital.
A wide range diversified geographically and by sector
In this new issue we find a wide range of assortment that allows to obtain a good degree of diversification both at sectorial and geographical level within a portfolio. To focus on the recovery of the Italian economy, the Cash Collect Maxi Premio on the basket formed by Eni, Enel, Intesa Sanpaolo and Leonardo (ISIN DE000HV8CQ14) allows exposure to the three most capitalized blue chips on the Italian market, including Enel and Intesa, which are particularly exposed to the domestic economy. The instrument, whose price is slightly above par (letter at 100.3), has a maxi premium of 10%, a quarterly premium of 1.15% and a barrier of 60%.
The most popular sector at the moment is probably that of electric cars. The certificate with ISIN DE000HV8CQC6 invests on Varta, which is the leading European manufacturer of batteries for electric vehicles, Tesla and Nio which in addition to being focused on the production of electric vehicles are the main suppliers of the Chinese market which is believed to become the largest in the world. The instrument has a letter below par at 97.1, a maxi premium of 18%, a quarterly premium of 4.8% and a barrier of 50%.
Finally, in a context of full energy transition, alternative and renewable energy sources such as wind power will certainly have a large margin for growth. The Cash Collect Maxi Premio with ISIN DE000HV8CQ55 invests on Siemens Gamesa Renewable Energy, Vestas Wind Systems, Veolia Environnement which are leaders in the production of wind power equipment. The certificate trades at a letter of 99.5 against a maxi premium of 10%, a quarterly premium of 3.35% and a barrier of 70%.
Below is the list of all Cash Collect Maxi Premiums of the new issue:
You can view product information updated in real time on the site www.investimenti.unicredit.it