OREANDA-NEWS. November 24, 2008. Investment Deposits Platinium are term deposits of SEB whose interest is tied to the success of the index that monitors price movements in different investment strategies aimed at absolute rate of return. The principal amount of the deposit is 100% protected by the end of the deposit period, reported the press-centre of SEB Bank.

The underlying asset of Investment Deposit Platinium is the index prepared by BNP Paribas, which consists of four strategies that use popular investment concepts:

Commodity strategy - earns from the price differences of future transactions with commodities;

Volatility strategy - earns from the difference in the expected and actual price fluctuation of equities;

Currency exchange strategy - earns from the differences in the interest rates of different currencies;

Equity strategy - earns from the differences in the rates of return of different investment styles.
The goal of all strategies is a stable rate of return in any market situation with low fluctuation in returns, where the returns earned would exceed the risks taken (return/risk ratio is larger than one).

These strategies complement each other as they are based on methods of earning returns that are relatively independent of each other. Historically, this has made it possible to increase the portfolio's return/risk ratio more than twice. The goal is to keep the price fluctuation of the entire portfolio around 3% in order to reduce fluctuation of returns.

It pays to buy the Investment Deposit Platinium, because:
It allows you to invest the principal of your investment into an innovative investment solution with a guarantee.

The rate of return of the strategies contained in the underlying asset is based on different sources that allow for the creation of a well-spread portfolio of low price fluctuation.

All strategies of the index are based on principles that would allow for positive rates of return in all market situations.

It offers a good opportunity to spread your investment portfolio. The solution has a very low correlation with other financial assets.

Source: Thomson Reuters
The historical rate of return of the underlying asset of Investment Deposit Platinium over the last five years (a simulation has been presented until the launch of the index on 03.03.2008) and the global equity index. The MSCI World index quoted in euros is used as the global equity index.

Disclaimer under the graph: 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.

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 a risk premium in addition to the deposit amount (10% of the deposit amount). 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 interest paid on the investment deposit does not exceed the risk premium paid.

Investment deposits are opened in Estonian kroons, euros and US dollars. 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. Investment deposit contracts can be signed at our Internet bank, U-Net, and at our branches.

Advantages of investment deposits:
100% capital guarantee at the end of the deposit period
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
This offer will remain valid until 18 December 2008.