OREANDA-NEWS. November 06, 2009. These investment deposits are the term deposits of SEB Bank AS (SEB) and their interest is tied to the success of companies in emerging markets. The principal amount of the deposit is 100% protected by the end of the deposit period, reported the press-centre of SEB Bank.
 
The interest calculation of the Investment Deposit New Emerging Markets is based on the index prepared by French bank BNP Paribas , which contains the shares of companies in Indonesia, Mexico, South Korea, Vietnam, Turkey, Egypt, Philippines and Pakistan. The proportions of said countries in the index are defined on the basis of the tradability of their equities, economic volumes and economic growth outlooks.

The proportions of the shares of Mexican (24%), Korean (23%) and Turkish (17%) companies are the biggest in the index. The sectors with the biggest proportions are financial services (28%), telecommunication (19%) and consumer goods (15%). The index that is the underlying asset also contains price fluctuation control. The investment is partially moved into money if price fluctuations increase. The bigger the price fluctuations, the bigger the part of the investment that is replaced with money. The goal is to keep the volatility of the index below the level of 18%.

Why invest in the Investment Deposit New Emerging Markets?
Quickly developing economies. All the countries in the index are characterised by quick economic growth, which is supported by large populations, economic reforms and active foreign trade. Continuation of the growth on the same level may give these countries a place among the most successful economies of the world in about twenty years' time.

Diverse portfolio. The countries in the index are located in different geographic regions and are on different levels of development, and their economic growth is also affected by different factors. This provides an interesting and spread investment in terms of investing.

Foreign investments. The inflow of foreign investments into these countries is large and comprises up to 6% of all foreign investments in the world. The volume of foreign investments made into these countries has been increasing constantly, providing the liquidity required for economic growth.

Young population. All of these countries are characterised by large populations and a large proportion of young people in the population. The existence of sufficient labour creates the precondition for continued economic growth.

However, it has to be kept in mind that:
The risk premium paid on deposits with a risk premium may be lost. The deposit may not earn the risk premium back if the price of the underlying asset decreases or does not increase sufficiently.

The investment environment on emerging markets may change considerably due to political or legislative reasons. Changes in the political systems or legislation of the countries in the index may make investing in these countries impossible or increase the costs associated with transactions to such an extent that it has a negative impact on the value of the underlying asset.

The historical rates of return of the underlying asset of Investment Deposit New Emerging Markets and the World Equity Index since the launch of the BNP Paribas Next 11 Core 8 Excess Return Index in August 2008 have been compared in this graph. The index used as the World Equity Index is the MSCI World index, which is quoted in euros.

The deposit comes with a 100% guarantee
If 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 at our website www.seb.ee/investorkaitse in connection with the possible realisation of credit risk.

Investment deposits are opened in Estonian kroons and euros. In opening or closing deposits, Estonian kroons and euros are converted according to the official EUR/EEK exchange rate of Eesti Pank.

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

This offer is valid until 30 November 2009.