OREANDA-NEWS. October 02, 2009. These investment deposits are term deposits of AS SEB Pank (SEB) whose interest rate is dependent on the success of Chinese companies. The principal amount of the deposit is 100% protected by the end of the deposit period, reported the press-centre of SEB.

The return of the Investment deposit Basket of China is linked to the price movements of the basket of share, which consists of shares in the 15 Chinese companies (representing seven sectors of the economy).

Return calculation
The return of the underlying asset is calculated on the basis of the performance of the shares in the basket. All of the shares have equal weight (1/15th) in the basket, but the return on the five best performing shares is fixed at 30% regardless of whether their actual performance is higher or lower than this fixed level. With the remaining ten shares, their actual performance is taken into account.

Negative scenario: if the return on all of the shares is -30%, the return on the underlying asset is calculated as follows:
(5 * 30% + 10 * (-30%)) / 15 = -10%

Neutral scenario: if the return on all of the shares is 10%, the return on the underlying asset is calculated as follows:
(5 * 30% + 10 * 10%) / 15 = 16.7%

Positive scenario: if the return on all of the shares is 50%, the return on the underlying asset is calculated as follows:
(5 * 30% + 10 * 50%) / 15 = 43.3%

If the return on the underlying asset is negative, no interest is earned on the Investment deposits China Portfolio.

Why you should invest in the Investment deposit basket of China
Capital-protected investment in the shares of the Chinese companies
The economic situation in China is better than elsewhere in the world
The portfolio has good development potential and boasts highly capitalised companies

What you should also take into account
You may lose the risk premium you pay on deposits with a risk premium
The global economy may not recover as forecast

The Investment Deposit comes with a 100% guarantee
Provided you keep your money in the deposit until the end of the deposit period, SEB will pay at least the principal amount of your deposit back to you. Please read the terms and conditions of the deposit guarantee pursuant to the Guarantee Fund Act on the bank’s website at www.seb.ee/investorkaitse in connection with the possible realisation of credit risk.

Investment deposits can be opened in Estonian kroons, euros and US dollars. In opening or closing deposits, Estonian kroons and euros are converted according to the official EUR/EEK exchange rate of the Bank of Estonia.

The contractual and offer terms of investment deposits are available on the SEB website at www.seb.ee and from all SEB branches. You can also make an appointment for additional financial consultation at any branch. Investment deposit contracts can be signed via SEB’s U-Net Internet bank and at SEB branches.

This offer is valid until 02.11.2009.