Investment idea

Express certificate on the STOXX Global Select Dividend 4,00%

The global index issuer STOXX AG, headquartered in Zug, is part of Deutsche Börse AG. In the picture its headquarters, called The Cube, in Eschborn near Frankfurt. PICTURE GERMAN STOCK EXCHANGE

With an annual return of 4.00%, our new investment idea offers an attractive return if the STOXX® Global Select Dividend 100 Index tends sideways or upwards. The index comprises 100 large companies from the STOXX Global 1800 Index with the highest dividend yield. In turbulent times, dividend stocks are usually more resistant to economic cycles than growth stocks. With our construction, you benefit from potentially attractive returns and early redemption in case of a recovery or if the redemption threshold is exceeded.

The STOXX® Global Select Dividend 100 Index enables investors to diversify their portfolio on an international level. In turbulent times, dividend-bearing stocks are generally more resilient in the face of economic developments than growth stocks. Generally speaking, large companies with stable, sizeable dividends are an economically safe option. Their stock price is less volatile than that of smaller or medium-sized growth-driven companies.

The STOXX® Global Select Dividend 100 Index measures the performance of 100 companies with the highest-yielding dividends, relative to their home markets. The STOXX® Global Select Dividend 100 Index brings together 40 companies from the Americas, 30 from Europe and 30 from the Asia-Pacific region.

Components included in the index need to display historically positive growth across various indicators, such as dividend-per-share and dividend-to-earnings per share, weighted annually on the basis of the net dividend yield.

STOXX® Global Select Dividend 100 price in euros, 5-year view

After a five-year low of EUR 2210 at the beginning of 2014, the index of the dividend-strongest global players peaked in April 2015 and is currently trading at its long-term average of EUR 2660.

How the express certificate with memory works

The BNP Paribas express certificate on the STOXX® Global Select Dividend 100 Price Index, with memory, is a bearer bond of BNP Paribas Emissions- und Handelsgesellschaft mbH (the “issuer”). It matures on 29 September 2025, except in instances of early redemption. There is the opportunity for interest to be paid and the option of early redemption, dependent on the development of the STOXX® Global Select Dividend 100 Price Index (underlying). Repayment at maturity is also dependent on the development of the underlying.

Interest payments

The underlying is reviewed on the observation date in question to ascertain whether it is at or above the interest barrier of 75.00% of the initial fixing. If this is the case, an interest amount of EUR 40.00 will be disbursed in arrears as a one-off payment for each certificate, plus any interest amounts that may not have been disbursed previously (memory effect). If this is not the case, no interest will be disbursed. In the event of early redemption, interest payments will not be made subsequently.

Opportunity for early redemption

The underlying is reviewed on the observation date in question to ascertain whether it is at or above the relevant disbursement level. If this is the case, the certificate will be repaid early at par value. Otherwise, the certificate will continue to run until the following observation date.

Redemption at maturity

The final fixing will determine whether the underlying is quoted at or above the barrier of 75.00% of the strike price. If this is the case, the par value will be paid for each certificate. Otherwise, it will be redeemed at par value minus the negative development of the underlying between the initial and final fixing. Please note that any income from the underlying (e.g. dividends) that may accrue prior to maturity will not be passed on to the holder of the certificate.

Express certificate with memory

Underlying STOXX® Global Select Dividend 100 Price Index
Coupon 4.00% p.a.
Maturity 72 months
Issuer BNP Paribas
Barrier at maturity 75%
Issue price EUR 1,000.00
Subscription period 8 August 2019 to 20 September 2019, 12 pm – early closing possible
Currency Euro
Express level After 12 months = 100%
After 24 months = 95%
After 36 months = 90%
After 48 months = 85%
After 60 months = 80%

Your contact

Senol Atac

Senior Client Advisor Switzerland (German) & Liechtenstein

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