OREANDA-NEWS. August 27, 2008. These Investment Deposits are SEB term deposits whose interest is tied to the success of South Korean, Brazilian and Russian companies. The principal amount of the deposit is 100% protected during the entire deposit period, reported the press-centre of SEB Bank.

It pays to buy the Investment Deposit KoBraRu, because:
Brazilian economy has undergone vast development in the last few years and its economy is in better shape than ever before. The country’s foreign trade is balanced and foreign debt has decreased from 45% in 2002 to 18%. Foreign currency reserves have tripled since 2006 and the net debt of the country is less than 45% of GDP.

The worth of the Korean share market is low and the profits of companies are good regardless of the world economy cooling down. The economic growth of Korea is driven by companies who export to China, the Middle East and Russia. Domestic consumption also remains strong.

The rapid growth of the Russian economy is expected to continue in the next few years. The economy will grow over 8% this year and the growth expectations for the coming years exceed 6%. The growing middle class in Russia increases domestic consumption and boosts the income of local companies.

Commodity prices are expected to remain high for the next couple of years, which allows Russia and Brazil to benefit from their vast quantities of natural resources.

The underlying asset of Investment Deposit KoBraRu is a portfolio that consists of the Korean and Russian share indices and the Brazilian index fund in equal proportions. The shares of the energy (46%) and base materials (28%) sectors are the largest in the portfolio.

The rate of return of the Investment Deposit KoBraRu Portfolio in the last five years has been compared to the rate of return of the overall world index in the above graph. The graph shows that the amplitude of the portfolio is higher when compared to the world index, which means that it offers the opportunity to earn more than the market average. On the other hand, it also means that the portfolio will fall more than the average in bad times. Guaranteed preservation of the deposit amount offers protection against the latter.

NB! Rates of return in previous periods do not constitute a promise or an indication if the rates of return in future periods.

The Investment Deposit comes with a 100% guarantee
If you keep your money in this investment deposit until the end of the deposit period, then we guarantee that at least the principal amount of your deposit is paid back to you. A bigger share of the increase in the underlying asset can be earned if you opt for an investment deposit with a risk premium and pay an additional 10% as the risk premium. The risk premium gives you the option of doubling your earnings from the price increases of the portfolio, but you have to keep in mind that the risk premium will not be earned back if the price of the portfolio does not increase. The investment fund is opened in Estonian kroons. Estonian kroons and euros are converted when the deposit is opened and closed using the EUR/EEK exchange rate established by Eesti Pank.

The detailed contract and offer terms of Investment Deposits are available on our homepage and at all SEB branches. You can also make appointments for consultations on the Internet and at branches. Investment deposit contracts can be signed through our Internet bank U-Net and at our branches.