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Information about investments in SHARES:

Shares represent a proportional part of the share capital of a public limited company; accordingly, they grant their holders the status of owner shareholder of the same, in proportion to the size of their shareholding. This shareholder status involves both a series of rights and a series of responsibilities linked to exercising them. The shares make up the company’s capital.

The list price of a share at any given time will depend on the market valuation of the issuing company. This valuation is subject to a number of factors and circumstances which means that the shares may fluctuate upwards or downwards significantly.

Investors should be aware that companies may carry out a variety of corporate transactions that may change the number of shares into which their share capital is divided, the nominal value of each share or the allotment of shares among shareholders. Investors should monitor such corporate movements to assess their impact on their investment or their capacity as shareholders. Corporate transactions include, but are not limited to, capital increases or reductions, IPOs, takeovers, mergers and spin-offs, splits or regroupings.

Warning about the risks associated with investments in SHARES:

Shares are variable income securities so the outcome of your investment is unknown. Both the price at which the shares can be sold and the dividends to be received during the period of ownership are uncertain. Investments in shares are characterized by their uncertainty in terms of the result of the investment. Accordingly, they put your capital at risk.

If the currency in which the share is traded does not match the investor’s reference currency, a potential loss may arise due to adverse movements in the exchange rates between both currencies (exchange rate risk).

An investment in shares may carry the risk of a total or partial loss of the investment.

The fact that the Bank may provide information about the situation, performance, evaluation and other aspects of the markets can never be taken as a commitment or guarantee of action, just as it cannot assume any responsibility for the performance of the investment or disinvestment. Highly concentrated investment in variable income is not recommended since it is not a complete investment programme.

Information about investments in INVESTMENT FUNDS:

Investment funds are collective investment schemes; this means that individual results depend on the performances obtained by a group of investors.

The management company invests the money provided by investors (participants) in different financial assets (fixed income, variable income, derivatives, bank deposits, etc. depending on the investment policy of the fund), which make up the assets of the fund. The performance of these assets in the markets will determine the positive or negative results that will be assigned to the participants in proportion to the total fund assets that their investment represents.

Investment funds are open schemes, in other words, any investor can enter or leave the fund by buying or selling units. These transactions will be carried out according to the terms set out in the information brochure and/or the fund regulations.

The investor pays certain commissions which vary from fund to the fund. Management and depository commissions are charged to the fund, and so they are deducted from the profits obtained by the investor. Furthermore, there may also be commissions for purchases and/or reimbursements, which will increase the payment that has to be made and/or reduce the amount to be received upon sale.

Warning about the risks associated with investments in INVESTMENT FUNDS:

Like any other investment product, funds carry certain risks. If the market in which the fund is invested do not perform as expected, there may be losses. The nature and scope of the risks will depend on the type of fund, its individual characteristics and the assets in which it invests its capital.

If the fund’s currency does not match the investor’s reference currency, a potential loss may arise due to adverse movements in the exchange rates between both currencies (exchange rate risk).

The fact that a fund has performed well in the past, does not guarantee that this level of performance will be maintained in the future.

The fact that the Bank may provide information about the situation, performance, evaluation and other aspects of the markets can never be taken as a commitment or guarantee of action, just as it cannot assume any responsibility for the performance of the investment or disinvestment.

Highly concentrated investment in a single type of fund is not recommended since it is not a complete investment programme.