HVB launches bonus fund ahead of German tax changes

HVB has launched its fourth bonus fund in Germany, in the climate of increasingly favourable tax conditions for the investments. The fund is designed to offer the payout structure of a certificate, while also protecting investors from the associated credit risk.

The six-year fund pays a bonus of 40-45% of initial share value at maturity, with the exact level determined at strike. The fund is also linked to the performance of the DJ Eurostoxx 50, and will pay the performance of the index should it exceed the bonus coupon level. Capital is protected provided that the index has not fallen by more than 55%.

Under current tax conditions, gains from fund shares are tax exempt after a statutory holding period. The Abgeltungssteuer (tax law changes) will take

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