SEB Pank Presents Investment Deposit EM Currency Portfolio
OREANDA-NEWS. April 19, 2010. These investment deposits are term deposits of AS SEB Pank (SEB), whose guaranteed interest will be 0.15% on a yearly basis and whose additional interest is related to appreciation of the currencies of emerging markets against the euro. The principal amount of the deposit is 100% protected by the end of the deposit period, reported the press-centre of SEB Pank.
The rate of return of the Investment Deposit - EM Currency Portfolio is related to the price movements of the portfolio of exchange rates, where the currencies of three emerging markets are compared with the euro and, in the case of a positive result, the depositor is guaranteed to get the minimum level of additional interest.
The underlying assets comprise the following pairs of currencies:
EUR/BRL - the interbank currency market rate fixed normally at 15:15 by the European Central Bank, expressed as "n Brazilian reals per euro".
EUR/IDR - the interbank currency market rate fixed normally at 15:15 by the European Central Bank, expressed as "n Indonesian rupiahs per euro".
EUR/TRY - the interbank currency market rate fixed normally at 15:15 by the European Central Bank, expressed as "n Turkish liras per euro".
When calculating the return, the equally weighted yields of the pairs of currencies are found. In the case of appreciation of the currencies of the emerging markets, additional interest is paid to the deposits according to the performance of the portfolio or the minimum additional interest fixed at opening the deposit, whilst using the higher value of the two.
Why invest in the Investment Deposit - EM Currency Portfolio?
Capital-protected possibility to diversify the investments
Growth expectations of the emerging markets for the following years are much higher than those of the European (developed) countries.
The increasing middle class of the emerging markets boosts consumption in those countries, strengthening the economy.
The higher interest rates of the emerging markets compared to the interest rates of the established markets may cause greater inflow of capital to the emerging markets.
You should also keep in mind that
The additional interest of the investment deposit is not guaranteed.
Fluctuations in exchange rates may be caused by many circumstances, including unforeseeable ones, and therefore the currencies of the emerging markets need not appreciate.
The economic development of the emerging markets may be influenced by unpredictable circumstances, including the possibility that the global economy will not recover as forecast.
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 set forth in 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 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 contractual and offer terms of investment deposits are available on the SEB website at www.seb.ee as well as 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 Internet Bank and at SEB branches.
WARNING: This material alone is not sufficient for making final investment decisions! Before making a final investment decision, please read the terms and conditions of the investment deposit contract, the terms and conditions of the offer and the information on the SEB website at www.seb.ee/investorkaitse, particularly the important information about the potential risks associated with the product, very carefully and consult an expert if necessary.
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