Autocall is a popular tool of equity investing. Terms clearly define the target return of the investment.

Typically, in order to achieve the target return, it is sufficient if the underlying asset remains at least at its initial level, i.e. no positive return of the underlying is required. In addition, target return is almost always higher than the expected average return of stock markets.

If the early termination condition on predetermined observation dates is met, investment will automatically mature and pay out. Monitoring of the condition is done automatically and it does not require any actions from the investor.

The terms seek to exploit the natural behavior of the stock market to rise over time and also aim to reduce the timing risk associated with equity investments. If the development of the underlying asset is positive immediately on the first Observation Date, the investment matures with a predetermined return. If the development of the underlying asset is unfavorable at the beginning of the investment period, the underlying asset has time to recover and simultaneously the nominal return increases cumulatively during this time.

Some Autocalls incorporate a protection barrier. In these, there is still the possibility of a full return on principal even if the early termination condition is not met at any observation date and the underlying is below its initial level on its last observation date.

Autocalls are not principal protected. If the early termination condition is not met on any observation date AND the underlying asset is below the protection barrier level on the last observation date, it is possible for the investment to mature at a loss. Recommended holding period is until the maturity date. However, if necessary, all can also be sold during the investment period.

For information on Autocalls available for subscription, please contact your customer contact person.

Please also have a look at the realised returns of Autocalls and other structured investments.

Portfolio Managers

Ilkka Väkeväinen

Ilkka Väkeväinen

Director, Head of Capital Markets
Capital Markets
Helsinki
+358 50 095 2262
Joni Siltanen

Joni Siltanen

Manager, Structured Debt Investments
Capital Markets
Helsinki
+358 400 497 138
Anna Pesonen

Anna Pesonen

Manager, Structured Debt and Investment Solutions
Capital Markets
Helsinki
+358 40 489 7173