Strukturierte Produkte

In 1994, Schoellerbank issued Austria's first structured product with a capital guarantee. This product combined the security of investing in bonds with the potential returns of investing in equities. Since then, Schoellerbank has repeatedly offered structured products for subscription in cooperation with international issuers that have excellent credit ratings. Depending on the market environment, we offer products are offered that provide added value and a special investment alternative.

All structured products have clear features in common: transparency, traceability, clear tax regulations, and manageable terms offer customers an attractive risk/reward profile.

At Schoellerbank, we generally distinguish between three different product groups within structured products:

Structured products with capital protection

When designing investments that provide for a minimum repayment by the issuer, we focus is on current investor needs. Market conditions permitting, it is possible to achieve attractive participation in the performance of various underlying assets (e.g., equity, commodity, or currency markets) is possible. However, the minimum repayment plus the respective performance depends on the issuer's solvency.

Continuous innovation in these investments is important to Schoellerbank in order to remain one of the Austrian market leaders in this segment.

Advantages

Higher return opportunities
Participation in the performance of various underlying assets
Capital protection by the issuer
Minimum repayment by the issuer is already fixed from the start of the term
High credit rating of the issuer
Transparent structure
Flexible product design in line with the investor's risk/return profile.

Risk information

The value of the bond may fluctuate during its term.
Early sale is only possible at the respective market price of the bond. This depends on the general interest rate level, the remaining term, the performance of the underlying asset, volatility, the creditworthiness of the respective issuer, and supply and demand. Any currency risk also influences the market price.
The investor bears the issuer risk. In the event of default, this may result in losses, including a total loss.
The performance during the term does not correspond directly to the performance of the underlying asset and may even deviate significantly from it.
Under certain circumstances, dividends accruing during the term may not be distributed to investors, but may instead be used to finance the income mechanism.
The capital protection refers to the minimum repayment by the issuer at the end of the term.
The bonds are not covered by any statutory deposit protection.

Structured products without capital protection

In addition to products with capital protection provided by the issuer, higher-risk structured products are also offered. These products have a special payout profile depending on the performance of the respective equity or index. Repayment may be significantly below the product's initial nominal value. Depending on market conditions and demand, Schoellerbank offers various options, such as bonus or express certificates. Great importance is also attached to high credit ratings when cooperating with international issuers.

Advantages

Higher return opportunities
Participation in the performance of various underlying assets with a special payout profile
Transparent product structure
Flexible product design in line with the investor's risk/return profile.

Risk information

The value of the certificate may fluctuate during the term.
Early sale is only possible at the current market price of the certificate. This depends on the general interest rate level, the remaining term, the performance of the underlying asset, volatility, the creditworthiness of the respective issuer, and supply and demand. Depending on the certificate´s structure, exchange rate fluctuations may also negatively impact the market price.
The investor bears the issuer risk. In the event of default, losses up to and including a total loss may therefore occur.
The performance during the term does not correspond directly to the performance of the underlying asset and may even deviate significantly from it.
Under certain circumstances, dividends accruing during the term may not be distributed to investors, but rather be used to finance the return mechanism.
There is no capital protection by the issuer at the end of the term.
The bonds are not covered by any statutory deposit protection.

^{^{For detailed information on the risks associated with the respective products, please refer to the prospectuses published by the issuers.}}

Structured interest rate products

Structured interest rate products offer an interesting alternative to conventional fixed-interest bonds. Many products combine security and capital preservation with additional income relative to the yield level.

However, investors should prioritise sensible and realistic structures. When structuring these products, Schoellerbank prioritises a balanced risk/return profile. Attractive opportunities should be exploited from a countercyclical perspective.

Advantages

Realistic, transparent features (also from a countercyclical perspective)
Balanced risk/return ratio
Manageable terms
Clear tax treatment
Issuers with high credit ratings
Interim redemption options/ongoing valuation

Risk warnings

The value of the bond may fluctuate during its term.
Early sale is only possible at the current market price of the bond. This depends on general interest rates, the remaining term, liquidity, the creditworthiness of the respective issuer, and supply and demand. Depending on the structure of the interest-bearing product, exchange rate developments may also negatively impact the market price.
The investor bears the issuer risk. In the event of default, losses may therefore occur, up to and including total loss.
The capital protection refers to the minimum repayment by the issuer at the end of the term.
The bonds are not covered by any statutory deposit protection.
There is a risk that investors will not be able to reinvest income or redemption payments from the bond at the same rate of return (reinvestment risk).

^{^{For detailed information on the risks associated with the respective products, please refer to the prospectuses published by the issuers.}}

^Note:

^{This information constitutes marketing communication and not financial analysis, investment recommendation, or investment advice. It does not constitute an offer or solicitation to enter into a contract for investment services or ancillary services. This marketing communication has not been prepared in accordance with the legal requirements ensuring the independence of financial analysis, nor is it subject to the prohibitions on trading following the dissemination of financial analysis.}

^{Marketing communications cannot replace investment advice. It is only in the context of providing such advice that Schoellerbank can take into account the personal circumstances of its customers (investment objectives, experience and knowledge, risk appetite, and financial circumstances) and carry out a comprehensive assessment of suitability tailored to the customer.}

^{The figures refer to the past. Past performance is not a reliable indicator of future results. Every investment involves risk. Under certain circumstances, the entire capital invested may be lost. Interested parties should seek advice from a tax advisor regarding the specific tax implications of the investment.}

^{Limitation of liability:}

^{All information is based on reliable sources and careful analysis and is subject to change at any time. Schoellerbank is under no obligation to update this information.}

^{Schoellerbank accepts no liability for slight negligence in connection with source research and analysis, or for any information based thereon.}