SEB Offers Gold Strategy Investment Deposit
OREANDA-NEWS. July 05, 2010.
Investment Deposit 284 – Gold Strategy EUR
Investment Deposit 285 – Gold Strategy EUR with Risk Premium
Investment Deposit 286 – Gold Strategy USD
These investment deposits are term deposits of AS SEB Pank (SEB), whose interest rate is tied to the price movements in the gold strategy established by UBS, a major Swiss bank. The principal amount of the deposit is 100% protected by the end of the deposit period and the interest earned is free of income tax, reported the press-centre of SEB Pank.
The rate of return of the investment deposit ‘Gold Strategy’ is tied to an index established by UBS (UBS Gold Index), which is made up of four equally weighted trading strategies:
Real interest rates
Volume of open contracts in gold futures
The price of gold on the Indian market
The equities of the gold-mining sector
Each strategy uses for forecasting the changes in the price of gold and earning interest thereon the fundamental economic factors having an impact on the price of gold. In the case of each strategy, both long and short positions are used, which allows it to earn returns on both rising and falling markets.
Why invest in the Investment Deposit ‘Gold Strategy’?
The underlying assets have demonstrated a good rate of return in restless exchanges
Good possibility to diversify the portfolio, as this solution does not move in the same direction as traditional investments
Interest is exempt from income tax
You should also keep in mind that
The additional interest income is not guaranteed
You may lose the risk premium you pay on deposits with a risk premium
The movements in the price of gold are influenced by many, incl. unforeseeable circumstances, whereby this strategy might not work in all situations.
The rate of return of the underlying assets of the Investment Deposit ‘Gold Strategy’, UBS Gold Index, in the last five years (simulated until the launch of the index in September 2009), the historical rate of return of the World Equity Index, and the price of gold on the London Stock Exchange have been compared in the graph. The MSCI World Index, which is quoted in dollars, is used as the World Equity Index.
The investment deposit comes with 100% capital protection
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 out 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 central rate established by the Bank of Estonia.
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 to make final investment decisions! Before making a final investment decision, we urge you to very carefully read the terms and conditions of the investment deposit contract and the terms and conditions of the offer on the SEB website, particularly important information about potential risks related to the product at www.seb.ee/investorkaitse, and consult an expert if necessary. Legal acts governing the taxation system may be amended in future and taxation depends on the individual circumstances related to each client, including the client’s residency, type of legal person and other similar circumstances.
This offer is valid until 21.07.2010.