OREANDA-NEWS. October 07, 2008.  This investment deposit is a SEB term deposit whose interest is tied to price movements on the U.S., eurozone, Japanese and Chinese equity markets. The principal amount of the deposit is 100% protected during the entire deposit period, reported the press-centre of SEB Bank.

In the most recent year the equity markets have been very nervous and demonstrated a negative rate of return. This has been due to the events on the U.S. financial markets that have deteriorated the prospects of the world economy. At the same time the equity prices have already fallen so much that this increases the possibility of a subsequent upward move. This will be the case of course only provided that today the prospects of the world economy are assessed fairly. If it becomes evident that the economic growth of the next year will be less than that expected today, the fall in the equity prices may continue.

In the complicated situation of equity markets we offer for short-term investment of money an investment deposit with which it is possible to earn returns in both cases - both upon an increase as well as a decrease in the equity prices. The only prerequisite is that the movement in prices of the portfolio forming the underlying asset of the investment deposit may not be more than 30% in either direction. If the movement in prices of the portfolio is more than 30%, the depositor will not earn any interest.

It pays to buy the Up & Down Investment Deposit for the following reasons:
The investment deposit allows it to earn returns both in the case of an increase as well as a decrease on the equity markets.

This is a good solution in a situation where the equity prices are cheap although at the same time the prospects of the world economy may deteriorate on a short-term basis.

Preservation of the initial amount is guaranteed to the investors regardless of the events on the market.

The portfolio being the underlying asset includes all the most important equity markets of the world.

The underlying asset of the Up & Down Investment Deposit is a portfolio that consists of the U.S. index fund and the eurozone, Japanese and Chinese equity indices in equal proportions. The shares of the financial services (30%), energy (13%) and industry (13%) sectors are the largest in the portfolio.

The rate of return of the Up & Down Investment Deposit 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 of 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.

The investment deposit is opened in Estonian kroons. 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 the Investment Deposit 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 28 October 2008.