Investing in wikifolios: Handling of investments
Secure handling of the investments in wikifolio certificates
If you want to invest your money in an investable wikifolio, acquire a wikifolio open-ended index certificate (wikifolio certificate) that simulates the performance of the desired wikifolio, a notional reference portfolio, via an index 1:1. Neither wikifolio.com nor the wikifolio trader have access to your invested capital.
wikifolio certificates are products of the Lang & Schwarz Aktiengesellschaft
wikifolio certificates are issued by the Lang & Schwarz Aktiengesellschaft. These, like other certificates, are tradeable at the Stuttgart Stock Exchange or through OTC trading via Lang & Schwarz. A large part of wikifolio certificates is also tradable at the BX Swiss in Swiss franc.
When you buy a wikifolio certificate, you buy a product of the Lang & Schwarz Aktiengesellschaft. The Lang & Schwarz Aktiengesellschaft incurs a risk position through the sale of the product. According to the requirements of its own Lang & Schwarz risk management system, this risk position is to be hedged within the prescribed limitation. In general, a complete hedging of the positions from wikifolio certificates is sought. The risk nevertheless means that the Lang & Schwarz Aktiengesellschaft may not or not fully be able to meet its obligations for repayment.
For this purpose, the equivalent value of the investments in wikifolio certificates is collateralized and deposited in whole or in part with selected custodians. The deposit is usually supervised by a trustee specifically appointed for this purpose.
Despite a largely risk-averse risk management system at Lang & Schwarz, trading losses cannot be excluded. As issuer of the wikifolio certificates, the Lang & Schwarz Aktiengesellschaft is subject to general as well as specific risks due to its business activities. In this context, we refer to the respective current base prospectus including any supplements thereto as well as the respective Final Terms of the respective wikifolio certificate, which contain more information regarding this.