Insolvency of the partner, i.e., a possible inability to fulfil its obligations, such as dividend payments, interest payments, repayments, etc., on time or in full. Alternative terms for credit risk are debtor or issuer risk. This risk can be assessed with the help of the rating. The rating is prepared by rating agencies, whereby the credit and country risk is assessed. The rating scale ranges from "AAA" (best creditworthiness) to "D" (worst creditworthiness).

The risk that the value of capital assets will fall due to a loss of purchasing power because of price increases on the market. As the price level is influenced by many factors, it is not possible to predict how high inflation and therefore the loss in value will be in certain periods.

The loan taken out must be repaid regardless of the success of the investment. In addition, the borrowing costs reduce the return.

A price risk arises from possible fluctuations in the value of individual investments.

The ability to buy, sell or close out an investment at any time at market prices is called tradability (= liquidity). A market can be said to be liquid if an investor can trade his securities without even an average-sized order (measured in terms of the usual market turnover volume) leading to noticeable price fluctuations and cannot be executed or can only be executed at a significantly different price level.

Buy or sell orders to the bank (order placement) must at least include which investment is to be bought/sold, in what quantity/nominal value, at what price and over what period.

With the order supplement "best" (without price limit) you accept every possible price; this means that the required capital investment/sale proceeds remain uncertain. With a buy limit, you can limit the purchase price of a stock exchange order and thus the capital investment; purchases above the price limit are not executed. A sell limit allows you to set the lowest acceptable selling price; sales below the price limit will not be executed.

The risk that an investment may become worthless, e.g., due to its construction as a time-limited right.

Your client advisor will be happy to provide you with information on the tax aspects of the various investments on request. You should assess the impact of an investment on your personal tax situation together with your tax advisor.

In the case of transactions with a foreign connection (e.g., foreign debtors), there is an additional risk - depending on the country in question - that political or foreign exchange measures may prevent or hinder the realisation of the investment. Furthermore, problems may arise when processing an order. In the case of foreign currency transactions, such measures may also result in the foreign currency no longer being freely convertible.

If a foreign currency transaction is chosen, the return or performance of this transaction depends not only on the local return of the security in the foreign market, but also strongly on the development of the exchange rate of the foreign currency in relation to the investor's base currency (e.g., euro). A change in the exchange rate can therefore increase or decrease the return and value of the investment.

Arises from the possibility of future changes in market interest rates. A rising market interest rate level leads to price losses during the term of fixed-interest bonds, while a falling market interest rate level leads to price gains.

The validity of the order can be limited by a time limit. The validity of orders without a time limit depends on the practices of the respective stock exchange. Your account manager will inform you about further order supplements.

Bonds (= debentures, annuities) are securities in which the issuer (= debtor, issuer) undertakes to pay the holder (= creditor, buyer) interest on the capital received and to repay it in accordance with the terms and conditions of the bond.

Bonds are traded on a stock exchange or over the counter. Your bank can usually provide you with a buying and selling price for certain bonds on request.

The risk that the debtor will not be able to fulfil his obligations, or only partially, for example in the event of insolvency. You must therefore take the debtor's creditworthiness into account when making your investment decision. An indication of the debtor's creditworthiness can be the so-called rating (= credit assessment of the debtor by an independent rating agency. The rating "AAA" or "Aaa" means best creditworthiness (e.g., Austrian government bonds); the worse the rating (e.g., B or C rating), the higher the interest rate (risk premium) is likely to be.

This is made up of the interest on the capital and any difference between the purchase price and the achievable price on sale/redemption.

The yield can therefore only be stated in advance if the bond is held until redemption. If the bond has a variable interest rate, it is not possible to state the yield in advance. The yield (to maturity), which is calculated according to internationally recognized standards, is used as a benchmark for the yield. If a bond offers a yield that is significantly higher than bonds with a comparable term, there must be special reasons for this, e.g., an increased credit risk. If the bond is sold before redemption, the realizable selling price is uncertain, and the yield may therefore be higher or lower than the originally calculated yield. When calculating the yield, the charges must also be considered.

If the bond is held until maturity, you will receive the redemption proceeds promised in the bond terms and conditions upon redemption. If you sell the bond before maturity, you will receive the market price (price). This is based on supply and demand, which depends, among other things, on the current interest rate level. For example, the price of fixed-interest bonds will fall if interest rates for comparable maturities rise; conversely, the bond will be worth more if interest rates for comparable maturities fall. A change in the debtor's credit rating can also have an impact on the price of the bond.

The tradability of bonds can depend on various factors, e.g., issue volume, remaining term, stock market practice, market situation. A bond may also be difficult or impossible to sell, in which case it would have to be held until redemption.

Shares are securities that securitise participation in a company (public limited company). The most important rights of the shareholder are participation in the profits of the company and the right to vote at the Annual General Meeting (exception: preference shares).

The return on share investments is made up of dividend payments and share price gains/losses and cannot be predicted with certainty. The dividend is the company's profit distributed by resolution of the Annual General Meeting. The amount of the dividend is stated either as an absolute amount per share or as a percentage of the nominal value. The income generated from the dividend in relation to the share price is called the dividend yield. As a rule, this will be significantly lower than the dividend expressed as a percentage. The more significant part of the income from share investments regularly results from the performance of the share (see price risk).

A share is a security that is usually traded on a stock exchange. As a rule, a price is determined daily according to supply and demand. Share investments can lead to significant losses. In general, the price of a share is based on the economic development of the company and the general economic and political conditions. Irrational factors (moods, opinions) can also influence the price development and thus the return on the investment.

Shareholders have a stake in a company. The investment may become worthless, particularly if the company becomes insolvent.

Tradability can be problematic in the case of securities with a narrow market (especially listings on unregulated markets, OTC trading). Even if a share is listed on several stock exchanges, there may be differences in tradability on the various international stock exchanges (e.g., listing of an American share in Frankfurt).

Shares are traded on a stock exchange, sometimes over the counter. When trading via a stock exchange, the respective stock exchange practices (closing units, order types, value date regulations, etc.) must be observed. If a share is quoted in different currencies on different stock exchanges (e.g., a US share is quoted in euros on the Frankfurt Stock Exchange), the price risk also includes a currency risk. Your customer advisor will inform you of this. When buying a share on a foreign stock exchange, please note that foreign stock exchanges always charge "foreign fees" in addition to the usual bank fees. Your client advisor will inform you of the exact amount.

Unit certificates in Austrian investment funds (investment certificates) are securities that securitise co-ownership in an investment fund. Investment funds invest the unit holders' money according to the principle of risk diversification. The three main types are bond funds, equity funds and mixed funds, which invest in both bonds and equities. Funds can invest in domestic and/or foreign securities.

The return-on-investment funds is made up of the annual distributions (provided they are distributing and not accumulating funds) and the development of the calculated value of the fund and cannot be determined in advance. The performance depends on the investment policy laid down in the fund regulations and on the market performance of the fund's individual asset components.

Fund units can normally be redeemed at any time at the redemption price. In exceptional circumstances, redemption may be temporarily suspended until the assets of the fund are sold and the realisation proceeds are received. If too many unit certificates are redeemed, this may result in the fund being closed due to insufficient volume. This may result in the redemption being suspended and/or the units being redeemed at a lower price. Your client advisor will inform you of any charges or the day on which your buy or sell order is executed. The term of the fund depends on the fund regulations and is generally unlimited. Please note that, unlike bonds, there is generally no redemption for investment fund units and therefore no fixed redemption price. The risk of a fund investment depends on the investment policy and market performance, as already explained under income. A loss cannot be ruled out. Even though they can normally be redeemed at any time, investment funds are investment products that typically only make economic sense over a longer investment period.

The tax treatment of income varies depending on the type of fund.

A redemption fee is introduced to cover certain liquidity costs for the benefit of the fund and/or the remaining investors in the fund. Example: a redemption fee of 0.1 % is decided upon and implemented (after the prospectus / §21 document has been amended); redeeming investors receive a payment of EUR 99.90 for each EUR 100 redemption order. The difference of EUR 0.10 is forwarded to the fund.

The extension of the notice period (the period for all investors to redeem their shares) is typically activated when the liquidation process for certain fund positions takes longer than expected, and thus the investor's order to redeem their shares cannot be fulfilled within the timeframe stipulated in the prospectus / §21 document. Example: for a fund traded daily, the redemption period is extended to one week.

Foreign investment funds are subject to foreign legal provisions, which may differ considerably from the provisions applicable in Austria. Supervisory law can often be less strict than in Austria.

Abroad, there are also so-called "closed-end funds" or funds constructed in accordance with stock corporation law, where the value is based on supply and demand and not on the intrinsic value of the fund, similar to the price formation of shares. Please note that distributions and income equivalent to distributions from foreign investment funds (e.g. accumulation funds) - regardless of their legal form - are subject to different tax rules.

Exchange traded funds (ETFs) are fund units that are traded like shares on a stock exchange. An ETF usually replicates a basket of securities (e.g. a basket of shares) that reflects the composition of an index, i.e. replicates the index in a security by means of the securities contained in the index and their current weighting in the index, which is why ETFs are often referred to as index shares.

The return depends on the performance of the underlying securities in the basket.

The risk depends on the underlying securities in the basket of securities.

Austrian property funds are special assets owned by an investment company that holds and manages the special assets in trust for the unit holders. The unit certificates securitise a contractual participation in this special fund. Property funds invest the monies received from the unit holders in accordance with the principle of risk diversification, in land, buildings, shares in property companies and comparable assets and own construction projects; they also hold liquid financial assets (liquidity investments), such as securities and bank balances. The liquidity investments serve to guarantee the property fund's upcoming payment obligations (e.g., due to the acquisition of properties) and redemptions of unit certificates.

The total return of property funds from the point of view of the unit holders is made up of the annual distributions (in the case of distributing and non-accumulating funds) and the development of the calculated unit value of the fund and cannot be determined in advance. The performance of property funds depends on the investment policy set out in the fund regulations, market developments, the individual properties held in the fund and the fund's other assets (securities, bank deposits). The historical performance of a property fund is no indication of its future performance.

Among other things, property funds are exposed to income risk due to possible vacancies in the properties. Problems may arise with initial letting, particularly in the case of own construction projects. Subsequently, vacancies can have a correspondingly negative impact on the value of the property fund and lead to reductions in distributions. Investing in property funds can also lead to a reduction in the capital invested.

In addition to bank deposits, property funds also invest liquid assets in other forms of investment, in particular interest-bearing securities. These parts of the fund assets are then subject to the special risks that apply to the selected form of investment. If property funds invest in foreign projects outside the euro currency area, the unit holder is also exposed to currency risks, as the market value and capitalised earnings value of such a foreign property is converted into euros each time the issue or redemption price for the unit certificates is calculated.

Unit certificates can normally be redeemed at any time at the redemption price. It should be noted that the redemption of unit certificates may be subject to restrictions in the case of property funds. In exceptional circumstances, redemption may be temporarily suspended until the assets of the property fund are sold and the realisation proceeds are received. In particular, the fund regulations may provide for redemption to be suspended for a longer period of up to two years following major redemptions of unit certificates. In such a case, payment of the redemption price is not possible during this period. Property funds are typically classified as long-term investment projects.

Warrants (OS) are interest- and dividend-free securities that grant the holder the right to buy (call warrants/call OS) or sell (put warrants/put OS) a specific underlying asset (e.g., shares) at a predetermined price (strike price) at a specific time or within a specific period.

The holder of the call warrants has fixed the purchase price of the underlying asset by acquiring the OS. The return may result from the fact that the market price of the underlying asset is higher than the exercise price to be paid by you, whereby the purchase price of the OS must be deducted. The holder then has the option of buying the underlying at the strike price and selling it again immediately at the market price.

Usually, the increase in the price of the underlying is reflected in a relatively larger increase in the price of the OS (leverage effect), so that most investors realize their return by selling the OS. The same applies analogously to put warrants; these usually rise in price if the underlying asset falls in price. The return on warrant investments cannot be determined in advance. The maximum loss is limited to the amount of capital invested.

The risk of warrant investments is that the underlying asset may not develop in the way you based your purchase decision on by the time the warrant expires. In extreme cases, this can lead to the total loss of the capital invested.

The price of your OS also depends on other factors. The most important of these are Volatility of the underlying asset (a measure of the expected fluctuation range of the underlying asset at the time of purchase and at the same time the most important parameter for the price worthiness of the OS). High volatility generally means a higher price for the warrant.

Term of the OS (the longer the term of a warrant, the higher the price).

A decrease in volatility or a decreasing remaining term can have the effect that - although your expectations regarding the price development of the underlying have been met - the price of the warrant remains the same or falls.

We generally advise against buying a warrant shortly before the end of its term. Buying when volatility is high makes your investment more expensive and is therefore highly speculative.

Warrants are generally only issued in small quantities. This results in an increased liquidity risk. This can lead to particularly high price fluctuations for individual warrants.

Warrants are largely traded over the counter. There is usually a difference between the buying and selling price. This difference is at your expense. When trading on the stock exchange, particular attention must be paid to the often very low liquidity.

Warrants are not standardized. It is therefore particularly important to find out about the exact terms and conditions, in particular:

Exercise type: Can the option right be exercised continuously (American option) or only on the exercise date (European option)?

Subscription ratio: How many warrants are required to receive the underlying?

Exercise: Delivery of the underlying or cash settlement?

Expiry: When does the right expire? Please note that the bank will not exercise your option rights without your express instructions.

Last trading day: This is often some time before the expiry date, so it cannot be assumed without further ado that the warrant can be sold by the expiry date.

Structured investment instruments” are investment instruments whose income and/or capital repayments are usually not fixed but are dependent on certain future events or developments. Furthermore, these investment instruments may, for example, be structured in such a way that the product can be terminated prematurely by the issuer if predetermined targets are reached, or automatic termination takes place at all.

Individual product types are described below. Common collective terms are used to describe these product types, but these are not used uniformly on the market. Due to the wide range of connection, combination and payout options for these investment instruments, a wide variety of investment instrument designs have developed, the names chosen for which do not always consistently reflect the respective designs. It is therefore always necessary to check the specific product conditions. Your client advisor will be happy to inform you about the various structures of these investment instruments.

If interest and/or income distributions have been agreed, these may be dependent on future events or developments (indices, baskets, individual shares, certain prices, commodities, precious metals, etc.) and may therefore cease to apply in part or in full in the future.

Capital repayments may be dependent on future events or developments (indices, baskets, individual shares, certain prices, commodities, precious metals, etc.) and may therefore be partially or completely canceled in the future.

Regarding interest and/or income distributions and capital repayments, particular attention must be paid to interest rate, currency, company, sector, country, and credit risks (possible lack of segregation and separation claims) and tax risks.

Irrespective of any existing interest, income or capital guarantees, the aforementioned risks can lead to high price fluctuations (price losses) during the term or make sales during the term difficult or impossible.

Sustainability risk is an environmental, social or governance event or condition that, if it occurs, could have an actual or potential material negative impact on the value of the investment. In addition to other sustainability risks, climate risks in particular, are increasingly coming into focus because of ongoing climate change. Climate risks include all risks that arise as a result of climate change or that are exacerbated by climate change. In the case of climate risks, a distinction is made between physical risks, which arise directly from the consequences of climate change, and transition risks, which arise from the transition to a climate-neutral and resilient economy and society and can therefore lead to a devaluation of assets. In addition to sustainability risks, sustainability factors can also play a role in an investment. Sustainability factors are defined as environmental, social and employee concerns, respect for human rights and the fight against corruption and bribery.

Sustainability risks are identified for financial products in accordance with the Disclosure Regulation (EU) 2019/2088.