25 percent protection: Alliance with a 16 percent chance

After good company news, the Allianz share was able to break through the 200 euro mark again.

25 percent protection: Alliance with a 16 percent chance

After good company news, the Allianz share was able to break through the 200 euro mark again. With bonus certificates with a cap, investors can achieve high returns even if the share cannot maintain the current level.

In the past two months, the Allianz share has steadily moved away from its annual low of EUR 156.22 on September 28. After the publication of the figures for the third quarter and the announcement of the intention to buy back own shares with a volume of up to one billion euros, the Allianz share surpassed the 200 euro mark for the first time in many months. In new analyzes with price targets of up to EUR 271 (Berenberg Bank), experts confirm their buy recommendations for Allianz shares, which are classified as slightly undervalued

If you want to significantly reduce the undoubtedly existing risk of buying shares directly and still want to achieve a return in the double-digit percentage range, you could consider buying a bonus certificate with a cap as an alternative to buying shares directly.

The investment idea

In times of high inflation and historically still low interest rates, structured investment products in combination with solid underlyings offer an efficient way to counteract the effective loss of purchasing power. Anyone who considers the Allianz share to be a solid underlying could consider investing in a structured investment product, such as a capped bonus certificate, as an alternative to buying shares directly. Even if the share price falls sharply, these products enable annual gross returns in the double-digit percentage range.

Apart from dividend payments, the direct purchase of the Allianz share will only allow a positive return if the share price increases. With bonus certificates with and without a cap, investors can achieve disproportionately high returns not only when the share price rises, but also when prices are stagnating or falling.

The way it works

If the Allianz share never touches or falls below the barrier of EUR 154 by the certificate's valuation date, the bonus certificate with cap will be redeemed on December 22, 2023 with the maximum redemption amount of EUR 245.

The key data

The Société Générale Bonus Certificate with a cap (ISIN: DE000SN4RS05) on the Allianz share has a bonus level and a cap of EUR 245. The cap defines the maximum payout amount of the certificate. The barrier activated until the valuation date, December 15, 2023, is 154 euros. With the Allianz share price of EUR 205.00, investors were able to purchase the certificate for EUR 211.64.

The chance

Since the certificate can currently be bought at 211.64 euros, it enables a gross return of 15.76 percent (equivalent to 14.7 percent per year) until December 2023 if the share price never falls by 24.88 percent to 154 by the valuation date euros or below.

The Risks

If the Allianz share price touches the barrier of EUR 154 by the valuation date and the share is listed below the cap on the valuation date, investors will receive one Allianz share for each certificate in their custody account. If this share is sold below EUR 211.64, the purchase price of the certificate, then the investment will cause a capital loss.

This article does not constitute a recommendation to buy or sell Allianz shares or investment products based on Allianz shares. No liability is assumed for the correctness of the data.

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