When the client gets Alfa Bonus in the form of doubled investment income if closes the product ahead of schedule in the first or second quarters. The project also provides for the accrual of quarterly fixed income in the amount of 6% per annum in euros or 10% per annum in dollars.
The stocks must be kept within a certain range for investment income accrual. “The initial price of securities at a predetermined date is taken as the upper 100% range limit; the lowest barrier is 75% of their initial cost. The client gets a 1.5% coupon of the invested amount when investing in euros or a 2.5% coupon when investing in US dollars every quarter if all program terms are fulfilled,” the press service of the insurer reports.
The investment part is automatically closed if, at the time of observation, the stock price with the worst dynamics “breaks through” the 100% barrier. In this case the Autocall plan is activated: the client receives 97% of the invested funds, coupon for the current period, as well as all previously unpaid coupons. At the end of the program, Alfa Insurance-Life pays the remaining 3%.
When the product is closed ahead of schedule in the first or second quarters, the client also receives Alpha Bonus, a double coupon. In case the Autocall scenario is activated in the first quarter from the program opening, the coupon will be 5% when investing in US dollars or 3% when investing in euros. In case the program is closed in the second quarter, the coupon will be 10% or 6%, respectively.
“Thus, with the program early closure, investment income is calculated at a rate of 20% per annum when investing in dollars or 12% per annum when investing in euros. If, at the time of observation the shares fall below the level of 75%, the coupon is not paid, but is “kept in memory”, it will be added to the next coupon to be paid,” the press service explained.
As part of the strategy High-Tech Companies, the client invests in the American market giants: Adobe, Apple, Boeing and Facebook, with total capitalization of almost $2 trillion. Their shares are part of the well-known stock indices S&P 500, Dow Jones Industrial Average and NASDAQ-100 being in the portfolios of major investment funds such as Vanguard Group, Blackrock and Berkshire Hathaway.
Photos are from open sources.