Hertz is the world's largest car rental company with around 7,000 rental locations around the world. The level of capitalization is $1.98 billion, and the number of employees is about 40 thousand people.*
|Expected yield, % per annum||29-32%|
|Volume of investments||2400 USD|
|Term of placement of the deposit||up to 15.03.2019|
|Protection of capital||80%|
|Direction of Underlying Asset Price Movement||on a price increase|
- Up to date. This year, Hertz celebrates its anniversary, exactly 100 years ago, Walter Jacobs founded a small private car rental of ten cars. Jacobs was the first to understand the full potential of this market, and the company's service has remained at the highest level for the whole time.
- New technologies. The last few years have been a little unsuccessful for the company. The widespread development of mobile applications from other car rental dealers and the expansion of the range of services of the largest automotive companies have somewhat spoiled the life of Hertz, but as a world leader, the rental company has taken several important decisions, first, it is a major investment in the high-tech segment of self-driving car production.
- Getting rid of unprofitable locations. During the past year, the company made an important decision to exit from several world markets that do not pay off, the largest of which was Russia. Although it has become a blow against the company's reputation, the redirection of the released funds will clearly have a positive impact on financial results.
The company's shares have been quoted in a narrow channel of the lateral trend for the past several months, but soon the resistance level will be tested, the rebound from which should give an impetus to the active growth of 63.5% in the medium term.
This product allows you to participate in the growth of the underlying asset wherein the investor risks with a limited amount, which is determinated by the Capital protection level.
The product is dedicated specifically for conservative investors, where they can define and limit the risks of such products themselves. As such, these products provide a great opportunity to receive relativelly high income whilst minimising the possibility of capital loss.
*according to the information from the company's website.
- Product with capital protection
- Minimal Investment amount 2400 USD
Once the contract is concluded, the initial price of the underlying asset, the Capital protection level, and the participation rate are recorded.
Investor risks are limited to the amount determinated by the Capital protection level.
A product with 100% protection level carries the lowest possible risk and the lowest potential yield.
The repayment to the client is calculated according to the following formula:
Repayment = Investment amount * Capital protection level + Participation rate * Price change- Commission.
Where the investment amount is taken as 100%, and the price change is calculated as follows (Current Price – Initial Price) / Initial Price * 100%.
The commission for a investment product creation is 2% of the initial investment and is charged at the time of product expiration.
If at the Expiration date the price of the underlying asset is higher than the initial price, the investor is paid 100% of the invested funds and an income equal to the product of the participation rate and the growth of the underlying asset. Conversely, the investor is paid the invested funds in accordance with the Capital protection level.
The parameters of the products are indicative and may vary depending on the market situation.
In this case, the investor receives the invested amount calculated by the formula: 100% (initial investment) * 80% (Capital protection level) + 0.6 (participation rate) * 60% (price change) = 116%
In this case, the investor receives the invested amount calculated by the formula: 100% (initial investment) * 80% (Capital protection level) = 80%
The product yields shown in the examples and past financial performance do not guarantee future profits. All investment products are denominated in USD. The commission for an investment product creation is 2% of the initial investment and is charged at the time of product expiration. The expected yield of investment products is given in annualized percentage form.Note:
The protective investment component is allocated to fixed income products (Eurobonds and deposit schemes at leading banks). NordFX cannot be held responsible for any potential risks associated with the default of Eurobond issuers or the bankruptcy or default of any of the banks in which the deposits are held.