OREANDA-NEWS. October 07, 2008.
Investment Deposit 191 - Millennium-3 EEK 7%

Investment Deposit 192 - Millennium-3 EUR

Investment Deposit 193 - Millennium-3 EUR with Risk Premium

Investment Deposit 194 - Millennium-3 USD

These investment deposits are SEB term deposits whose interest is tied to the success of the index that monitors movements in the prices of equities, bonds, commodities, currencies and property. The principal amount of the deposit is 100% protected during the entire deposit period, reported the press-centre of SEB Bank.

The underlying asset of the Millennium-3 Investment Deposit is the portfolio managed by BNP Paribas whose rate of return is tied to the change in the prices of equities, bonds, commodities, currencies and property. The investment is managed according to the portfolio theory of Harry Markowitz, who has been awarded the Nobel Prize.

The application thereof makes it possible to earn higher returns at a smaller risk and price fluctuation. This is attained by combining different assets and price movements. As in the case of financial assets there may be both long position (profit is gained from an increase in prices of financial assets) as well as short position (profit is gained from a decrease in the prices of financial assets), it is possible to earn returns in every market situation.

It pays to buy the Millennium-3 Investment Deposit for the following reasons:
Its historical rate of return is good: the portfolio has demonstrated a better historical rate of return than other financial classes (comparison of the rate of return in between 1995-2008).

The portfolio is highly spread and contains equities, bonds, commodities, property and currencies.

It is possible to earn returns in every market situation. The investment strategy allows it to take long and short positions in financial assets, which allows it to earn returns in every market situation.

In portfolio management the efficient portfolio theory by Markowitz is used. The theory allows it to attain good rates of return at smaller price variations.

It offers an opportunity for spreading the investment portfolio. The solution has a very low correlation with other financial assets.

If the rate of return of the Millennium index remains below 7%, the guaranteed returns that clients of the "Investment Deposit 191 - Millennium-3 EEK 7%" will earn are 7%.

If the rate of return of the Millennium index is more than 7%, the clients of the "Investment Deposit 191 - Millennium-3 EEK 7%" will earn as high returns as upon investing directly in the index.

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 sufficiently (more than the paid risk premium).

Investment deposits are opened in Estonian kroons, euros and U.S. dollars. Estonian kroons and euros are converted when the deposit is opened and closed using the EUR/EEK central rate established by the Bank of Estonia. 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 in our Internet bank, U-Net, and at our branches.

Advantages of investment deposits:
100% capital guarantee
The opportunity to participate in markets that single investors find difficult to enter
The rate of return may be considerably higher than the interest of ordinary term deposits
No holding costs when compared to equities or bonds
The offer is valid until 3 November 2008.