Equities

Asian call on Internet data companies

Product Rationale

This product is designed for investors who have a positive view on Internet data consumption companies. Many analysts are sharing positive outlooks and think the sector will keep growing at a high rate for many reasons:

  • Advances in networking technology and semiconductors
  • Better affordability of smartphones
  • A variety of mobile applications who keep people connected
  • Improvements in online services
  • Growth of subscription based video on demand (VOD) streaming services

ProSieben Sat.1 Media AG is a broadcaster that provides VOD streaming services. Intel Corp. produces chips for servers, smartphones and tablets. The company also focus on data centres that power cloud computing. The other companies are integrated telecommunications services companies, based in various European and American countries.

The product is an Asian call on the basket. The averaging frequency is quarterly, and the observations will start at the first quarter.

Product Description1
  • Issuer: Commerzbank AG
  • Maturity: 5 years
  • Currency: EUR
  • Underlyings: 

Underlying name

Bloomberg ticker

Swisscom AG

SCMN VX Equity

Deutsche Telekom AG

DTE GY Equity

ProSiebenSat.1 Media SE

PSM GY Equity

Telefónica SA

TEF SM Equity

Orange SA

ORA FP Equity

BT Group plc

BT/A LN Equity

Telia Co. AB

TELIA SS Equity

AT&T Inc.

T UN Equity

Intel Corp.

INTC UQ Equity

Verizon Communications Inc.

VZ UN Equity

  • Note protection: 90% if held to maturity
  • Every quarter from first quarter: The level of the basket performance is recorded
  • At maturity: The 20 quarterly observations are averaged. Then, the investor receives: Note protection + max {0, averaged level – 100%}
Key Benefits
  • The product is 90% capital-protected if held to maturity
  • The Asianing (averaging) feature reduces the risks of potential downside move in the last few months of the product life
Key Risks
  • The investor might endure a partial capital loss in case the basket is not performing
  • The investor is exposed to the credit risk of the issuer
  • Please also refer to Additional Risk Disclosures below
Key Product Sensitivity Factors

Delta

Vega

Correlation

+

––

+

Legend: ++/– –: very sensitive +/–: sensitive 0: none

1 All payouts are subject to the Issuer/Counterparty Risk.

Additional Risk Disclosures
Before investing in this product, investors should carefully consider its appropriateness and suitability, and the following additional risks: 1. Issuer Risk: Any failure by the issuer to perform its contractual obligations, when due, may result in the loss of all or part of the invested capital. 2. Counterparty Risk: Any failure by Commerzbank AG to perform its contractual obligations, when due, may result in the loss of all or part of the invested capital. 3. Market Risk: Various market factors may affect the value of the investment or the underlying assets, including but not limited to the impact of volatility, interest rates, dividends (if any), foreign exchange. 4. Liquidity/Secondary Market Risk: Under normal market conditions Commerzbank will endeavour to provide a secondary market price. However, Commerzbank has no obligation to make a secondary market in the instruments concerned. Accordingly, under some circumstances, the secondary market for the investment may be limited and subject to wide bid/offer spreads. 5. Reinvestment Risk: The risk that the investment redeems prior to maturity at a time when reinvestment opportunities are not favourable for the investor. 6. Redemption Risk: The risk that the investor may receive substantially less than the amount invested, if they liquidate the investment prior to maturity. 7. Tax Risk: There may be tax implications based on where the investor resides. Please consult a tax professional before investing. 8. Legal Risk: There may be legal restrictions depending on where the investor is domiciled. It is advised to seek legal guidance prior to investing. When specified, the terms ‘guaranteed’ and ‘protected’ are subject to the creditworthiness and solvency of Commerzbank and although financially strong there is the possibility that returns may not be met in the unlikely event of a Commerzbank failure. For additional information on the product features and key risks, please contact your sales advisor or refer to the contacts page.