About bonus certificates
Bonus certificates are an attractive alternative to a direct investment in an underlying instrument, such as an equity or an index. These securities can yield positive returns whether the price of the relevant underlying instrument is rising, stagnating or even falling slightly. This is because if a price barrier (also referred to as a price threshold or hedging level), which is set at the start of the term and is below the current price of the underlying at the time of issue, is never reached or undershot, investors will receive at least the bonus level at the end of the term.
Like the price barrier, this bonus level is set at the time of issue; it is above the current price of the underlying. At maturity investors benefit fully on a one-to-one basis from price rises exceeding the bonus level.