A guarantee certificate ensures capital protection, 100% of which is guaranteed in full on the certificate expiration date. During lifespan of the certificate an investor can purchase the certificate for the currently offered price and sell it at the current bid price. This protection is not guaranteed during a sale before the expiration date.
- The price of the certificate during its lifespan approaches the nominal value and equals the nominal value on the expiration date (for ALENGR2 this is CZK 100). The certificate holder receives 100% of the nominal price (for ALENGR2 this is CZK 100). One benefit of holding a certificate is a guaranteed coupon bonus.
- For ALENGR2 the coupon bonus in the 1st year of the certificate (paid on 15 October 2008) is set to 5% p.a. In the second and third years (decisive dates of 12 October 2009 and 12 October 2010, paid 15 October 2009 and 15 October 2010), the coupon yield is variable, between 0 and 10%, based on the development of the underlying portfolio.
- If the investor has purchased a guaranteed certificate and holds it until the expiration date, the investor can be sure that 100% of the nominal value + 5% p.a. will be returned along with 2 variable coupon returns. This anticipates that the certificate is purchased in the 1st year of the certificate lifespan.
- A guarantee certificate is best for investors who are risk adverse, are willing to hold a certificate over the long-term (until the maturity date) and anticipate growth in the underlying asset in the 2nd and 3rd years and is not concerned if growth is limited to a maximum of 10% annually (in the 2nd and 3rd years).
List of certificates offered by Fio
- Alt Energ Gar II certificate
- BONUS GARANT CZK certificate
- ElectricityGarVB certificate
- ElectricityGarVB2 certificate
- GOLD SHARK GARANT CZK certificate
- TOP 5 Energy Garant certificate