OREANDA-NEWS. September 14, 2010.

Investment Deposit 290 – EM Currency Portfolio EUR

Investment Deposit 291 – EM Currency Portfolio EUR with Risk Premium

Investment Deposit 292 – EM Currency Portfolio USD


These investment deposits are term deposits of SEB Bank AS (SEB) and their interest is tied to the strengthening of emerging market currencies against the currencies of developed states. The principal amount of the deposit is 100% protected by the end of the deposit period, reported the press-centre of SEB Bank.

The return on Investment Deposit EM Currency Portfolio is tied to price movements in the exchange rate portfolio where the currencies of six emerging countries are compared to the currencies of three developed countries.

The following emerging market currencies are represented in the portfolio: Turkish lira (TRY), Polish zloty (PLN), Brazilian real (BRL), Mexican peso (MXN), Korean won (KRW) and Indonesian rupee (IDR).

The developed market currencies represented in the portfolio are the euro (EUR), Japanese yen (JPY) and US dollar (USD).

The return on the portfolio is positive when the emerging market currencies strengthen against the developed market currencies. The return on the portfolio is negative if the opposite happens (the developed market currencies strengthen against the emerging market currencies).

Calculation of return
The following currency pairs belong to the underlying asset:
USD/TRY, found as the cross exchange rate of EUR/TRY and EUR/USD;
USD/PLN, found as the cross exchange rate of EUR/PLN and EUR/USD;
USD/BRL, found as the cross exchange rate of EUR/BRL and EUR/USD;
USD/KRW, found as the cross exchange rate of EUR/KRW and EUR/USD;
USD/IDR, found as the cross exchange rate of EUR/IDR and EUR/USD;
USD/MXN, found as the cross exchange rate of EUR/MXN and EUR/USD;
USD/JPY, found as the cross exchange rate of EUR/JPY and EUR/USD;
USD/EUR, found as the reverse exchange rate of EUR/USD.

Exchange rates are expressed as ‘n currency per 1 UD dollar”. The exchange rates quoted by the European Central Bank are used to find cross and reverse exchange rates (see overview of the underlying asset for details).

The yields of currency pairs are found in the calculation of returns where the weight of emerging market currencies is 1/6 and the weight of developed market currencies 1/3. The weighted returns of emerging market currencies are added up and the weighted returns on developed market currencies are subtracted from the total.

Why invest in the Investment Deposit EM Currency Portfolio?

Good opportunity to diversify your investment portfolio

The economies of emerging countries are expected to grow considerably more in the coming years than the economies of major (developed) industrial countries

The growing middle class in emerging countries increases domestic consumption and boosts their economies

The interest rates in emerging countries are higher than in developed countries and may cause a bigger inflow of capital to emerging countries

The income earned on investment deposits is exempt from income tax

However, you should keep in mind that

Interest income on investment deposits is not guaranteed

The risk premium paid on deposits with a risk premium may be lost

The movements of currency exchange rates are affected my many circumstances some of which are unpredictable, which is why the currencies of emerging countries may not strengthen

The economies of emerging countries can be influenced by unpredictable circumstances, including the possibility that the global economy may not recover as forecast

This offer is valid until 27 September 2010.