OREANDA-NEWS  On 05 March was announced, that SEB presented line of investment deposits DEVELOPED EQUITY MARKETS:

Investment Deposit 209 - Developed Equity Markets EEK

Investment Deposit 210 - Developed Equity Markets EUR with Risk Premium

Investment Deposit 211 - Developed Equity Markets USD with Risk Premium

These investment deposits are SEB term deposits whose interest is tied to positive developments on the U.S., Eurozone and Japanese equity markets. The principal amount of the deposit is 100% protected by the end of the deposit period.

The underlying asset of Investment Deposit Developed Equity Markets is the portfolio consisting of the US Index fund (55%) and equity indices of the Eurozone (27.5%) and Japan (17.5%). The US index fund contains 500 of the largest US companies, the Eurozone equity index 50 of the largest companies in the given region and the Japanese equity index 225 major Japanese companies. The financial sector has the biggest share in the portfolio, followed by information technology and industry.

Advantages of Investment Deposit Developed Equity Markets:

Equity market investment with capital protection

Cheap share prices

The money injected by governments is activating the economies of these countries

The equity market is cautious, shares prices usually reach their bottom half a year before the economic growth or decline reaches its bottom

The equity markets of developed countries should turn before the equity markets of emerging countries

Risks of Investment Deposit Developed Equity Markets:

In the case of deposits with risk premium, the risk premium may be lost in the case of negative developments

The maximum growth of the underlying asset considered in the calculation of the rate of return is 25%

Fixing the final value of the investment deposit in advance may give a considerably lower rate of return when compared to direct investments

The investment deposit protects the contributed capital in the case of a negative development of the underlying asset. The entire investment is protected in investment deposits opened in Estonian kroons. Maximum loss in investment deposits opened in euros and US dollars is limited to the risk premium paid, or 9.1% of the total investment.

Interest is paid in the case of positive development of the underlying asset, but the maximum growth in the underlying asset considered in calculating the rate of return is 25%.

The Investment Deposit comes with a 100% guarantee

Provided that you keep your money in this investment deposit until the end of the deposit period, SEB will pay at least the principal amount of your deposit back to you.

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 contract and offer terms of investment deposits are available on our homepage at www.seb.ee 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 SEB branches.

More information are available here.