Standard
Commercial names
Express Protection, Athena Sicurezza, Express Protected
Characteristics:
- Full or partial capital protection
- Early redemption of a pre-arranged value if the underlying asset’s price is higher than or equal to a certain level on valuation dates.
Return profiles
| Maturity | 3 - 5 years |
| Investment horizon | Short, mid, long term |
| Aim | To obtain profits from stability, small upward movements of the underlying asset’s price, through a quick reimbursement with additional premium / to obtain proceeds from small upward movements of the underlying asset’s price |
| Strategy | Bullish |
| Capital protection at maturity/Risk | In case of downward movements of the underlying asset’s price, capital protection is up to 100%. |
Learn more
Investment certificates are financial products characterized by a number of features. They may simply replicate the underlying asset’s upward movements or downward movements, or they may be structured so as to implement more sophisticated strategies, which may include total or conditional capital protection against bad performances of the underlying asset (protection component).
Some certificates’ characteristics may also allow the owners to obtain proceeds during the life of the certificate, under condition that specific events take place (income component). A premium may be paid at maturity under form of additional proceeds in case the underlying asset’s price does not drop under the barrier (this is the case, for example, of bonus certificates).
The return on investment in some typologies of certificates may be determined by both the changes in the underlying asset’s price and the absence of such price movements for a timespan shorter than the life of the contract (early reimbursement component). These certificates pay a sort of premium for early redemption in case the underlying asset’s price is above a certain level on pre-arranged dates.
Moreover, some certificates feature an additional element, useful in periods of strong fluctuations of exchange rates – a protection against unfavourable changes in currency value. Products offering such protection, called “Quantum”, make it possible to invest in underlying asset’s denominated in a foreign currency avoiding exposure to the risks linked to exchange rates.
Features
The certificates’ payoff characteristics imply the following components: protection component, income component, early reimbursement component.
Performance drivers
Reactivity of the certificates’ prices to changes in key variables.
| Variables | Issue | Barrier** | Life residual*** |
 Underlying asset’s price |  | | |
| Volatility | | | |
| Time* |  | | |
| Interest rates | | | |
| Dividends | | |  |