Certificates certify the right to participate in the performance of an underlying base asset, such as indices, currencies, commodities, stocks or other financial products. A certificate is a debenture bond issued by an issuer. Buyers of certificates are therefore creditors of the issuer who issues the certificate. wikifolio open-ended index certificates (wikifolio certificates) are issued by the Lang & Schwarz Aktiengesellschaft.
The basis for a wikifolio certificate is an index which represents the performance of the wikifolio managed by the wikifolio trader on a 1:1 basis. By buying a wikifolio certificate, one gets the chance to participate in the development of the underlying wikifolio. In other words: If the value of the wikifolio increases by 10 percent, the investor can participate in this development by buying the corresponding wikifolio certificate. All certificate and performance fees are taken into account in the value of the wikifolio.
There is no additional funding obligation for investments in wikifolio certificates.
Any given amount (at least one certificate) can be invested in a wikifolio certificate. When investing in a wikifolio certificate, one pays the buy price for the certificate to the issuer Lang & Schwarz. Lang & Schwarz basicallly agrees to buy back the certificate on request of the buyer at a future point in time determined by the buyer. The buyback will be carried out at the respective current price of the certificate.
wikifolio certificates allow investors to include a dynamic component in their investment mix.