OREANDA-NEWS  On 05 March was announced, that SEB presented line of investment deposits MILLENNIUM-3:

Investment Deposit 212 - Millennium-3 EEK

Investment Deposit 213 - Millennium-3 EUR

Investment Deposit 214 - Millennium-3 EUR with Risk Premium

Investment Deposit 215 - Millennium-3 USD

These investment deposits are SEB term deposits whose interest is tied to the success of the index that monitors movements in the prices of equities, bonds, commodities, currencies and property. The principal amount of the deposit is 100% protected during the entire deposit period.

The underlying asset of Investment Deposit Millennium-3 is the portfolio managed by BNP Paribas whose rate of return is tied to the change in the prices of equities, bonds, commodities, currencies and property. The investment is managed according to the portfolio theory of Harry Markowitz, who has been awarded the Nobel Prize. The application of this theory makes it possible to earn higher returns at a smaller risk and price fluctuation. It is achieved by combining different assets whose price movements are not similar to each other. Since each financial asset can have a long position, which means that income can be earned from the price increases of the financial asset or a short position, which means that income can be earned from the price decreases of the financial assets, then it is possible to earn income both in the case of rising and falling markets.

Advantages of Investment Deposit Millennium-3:

The different financial assets contained in the index give a well balanced portfolio

The opportunity to earn income both on rising and falling markets

The effective portfolio theory used in preparing the portfolio makes it possible to achieve good rates of return at small price fluctuations

Allows investors to spread their investments as price movement is not similar to other assets

Risks of Investment Deposit Millennium-3:

The good historical rate of return may not be achieved again in the future

Investment Deposit 214 carries the risk that the risk premium may be lost

The rate of return of Investment Deposit Millennium-3 in the last five years (simulated until the launch of the index in March 2008) has been compared with the historical rate of return of the global equity index on the graph. The MSCI World index quoted in euros is used as the global equity index. Source: Reuters Thomson

NB! Rates of return in previous periods do not constitute a promise or an indication of the rates of return in future periods

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.

A bigger share of the increase in the underlying asset can be earned if you opt for an investment deposit with a risk premium and pay an additional 10% as the risk premium. The risk premium gives the opportunity to increase your earnings from the price increases of the portfolio by 2 times. However, account should be taken of the possibility that the risk premium will not be earned back if the price of the portfolio does not increase sufficiently (more than the risk premium paid).

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.