Package: Konto Oszczędnościowe + Lokata Inwestycyjna Feniks VI Pakiet COMMERCIAL PUBLICATION

Transcription

1 Package: Konto Oszczędnościowe + Lokata Inwestycyjna Feniks VI Pakiet COMMERCIAL PUBLICATION 1

2 What is the Konto Oszczędnościowe + Lokata Inwestycyjna package? Min. amount PLN 1000 PACKAGE Min. amount PLN 1000 Konto Oszczędnościowe 50%/50% Lokata Inwestycyjna Max. amount PLN Max. amount PLN In the Package the Customer will set up a Lokata Inwestycyjna deposit and will get promotional interest rate on the Konto Oszczędnościowe account. The package becomes available when transfer of principal and interest after maturity of the deposit is defined to Konto Oszczędnościowe. The promotional interest rate on Konto Oszczędnościowe covers funds up to the amount of Lokata Inwestycyjna, however not more than PLN NOTE: - The Customer does not have to provide money on Konto Oszczędnościowe on the day of setting up the Lokata Inwestycyjna deposit in the Package. Money can be transferred to the account later. The amounts paid-in up to the deposit amount will bear promotional interest rate. - Also the Customer does not have to pay-in additional amounts if deposited on Konto Oszczędnościowe is already the amount he would wish to invest in the Package. He just needs to set up a Lokata Inwestycyjna deposit. 2

3 What is the interest rate in the Package? Konto Oszczędnościowe PACKAGE Lokata Inwestycyjna 5% per annum 50%/50% As in T&C The promotional interest rate on Konto Oszczędnościowe remains valid for 180 days (6 months) from the day of setting up a Lokata Inwestycyjna deposit, according to the Price List. With respect to amounts on Konto Oszczędnościowe above the deposit amount, the standard interest rate shall apply, in keeping with the Price List. In case of premature termination of the deposit the interest rate on Konto Oszczędnościowe shall change from promotional to standard as of the day of premature termination of the deposit. 3

4 How does the: Konto Oszczędnościowe + Lokata Inwestycyjna package work? Konto Oszczędnościowe Promotional interest rate on Konto Oszczędnościowe (180 days) Standard interest rate Lokata Inwestycyjna Feniks VI Pakiet Subscription period (4% p.a.) Investment period Start of subscription End of subscription Start of investment Date of Determining Initial Value Payment of interest for the subscription period to Konto Oszczędnościowe account Date of last observation End of investment (maturity date): transfer of funds to Konto Oszczędnościowe PREMATURE TERMINATION OF DEPOSIT during the subscription period: Deposit: loss of interest and return of principal Account: change to standard interest rate from day of premature termination of deposit PREMATURE TERMINATION OF DEPOSIT during the investment period : Deposit: a handling fee is charged from the current account in the amount of 3% of the deposit amount Account: change to standard interest rate from day of premature termination of the deposit 4

5 Additional information about the Package During validity of the Package the Customer can freely use money on Konto Oszczędnościowe (withdrawals/deposits). The limit of promotional interest rate is invariable for 180 days and is the equivalent of the deposit amount. The Customer can have only one active Package. A Customer can set up a Package if he has no other Promotion on Konto Oszczędnościowe ( New Money on Konto Oszczędnościowe promotion or Konto Oszczędnościowe for New Customers promotion). 5

6 Examples of scenarios for the Package 1/2 I. SCENARIO The Customer would like to invest the amount of PLN in the Package. 1. DEPOSIT: Sets up a Lokata Inwestycyjna in the amount of PLN (yield on the deposit according to T&C) 2. ACCOUNT: On the account he already has the amount of PLN, after opening a deposit in the Package the interest rate on Konto Oszczędnościowe is as follows: ,00% per annum during the period of 6 months ,80% per annum (standard interest rate on Konto Oszczędnościowe) II. SCENARIO The Customer would like to invest the amount of PLN in the Package. Currently on Konto Oszczędnościowe he has the amount of PLN. 1. DEPOSIT: Sets up Lokata Inwestycyjna in the amount of PLN, which he transferred from Konto Oszczędnościowe 2. ACCOUNT: The amount of PLN remains on the Account. Interest rate is as follows: ,00% per annum during the period of 6 months 500-3,80% per annum (although on Konto Oszczędnościowe as standard there is the minimum amount of 1000 PLN for accrual of interest, in the case of the Package the total amount of PLN is taken into account) 6

7 Examples of scenarios for the Package 2/2 III. SCENARIO The Customer would like to invest the amount of PLN in the Package. 1. DEPOSIT: Sets up Lokata Inwestycyjna in the amount of PLN (yield on the deposit according to T&C) 2. ACCOUNT: On the Account he now has 5000 PLN. The interest rate is as follows: ,00% per annum during the period of 6 months 3. ACCOUNT: After 2 months the Customer puts on Konto Oszczędnościowe extra PLN. The interest rate is as follows: ,00% per annum (NOTE: the 6-month promotional interest rate is valid from the day of setting up Lokata Inwestycyjna, so the amount of PLN is still with promotional interest rate during 4 months) IV. SCENARIO The Customer would like to invest the amount of PLN in the Package. 1. DEPOSIT: Sets up Lokata Inwestycyjna in the amount of PLN (yield on the deposit according to T&C) 2. ACCOUNT: Currently on Konto Oszczędnościowe he has the amount of 500 PLN. The interest rate is as follows : 500-0% per annum (the Customer doesn t have the required minimum of 1000 PLN for accrual of interest) 3. ACCOUNT: After 1 month the Customer adds 2000 PLN to the Account. The interest rate is as follows : ,00% per annum (promotional interest rate is valid during the period of 5 months) ,80% per annum (standard interest rate) 7

8 Lokata Inwestycyjna Feniks VI Pakiet An investment deposit linked with the USD/PLN rate COMMERCIAL PUBLICATION 8

9 Product concept Lokata Inwestycyjna Feniks VI Pakiet is a product targeted at generating an attractive yield, with the assumption that the USD/PLN exchange rate during the investment does not exceed defined brackets. The product can generate an attractive rate of return in the short run, at the same time guaranteeing 100% protection of principal at maturity date. The product formula is based on the assumption that the current USD/PLN rate fairly reflects the demand and supply side, thus during the investment it will not fluctuate strongly. Investment period: 12 months Principal protection - 100% protection remains valid during the whole period of the deposit but terminating the deposit during the investment period involves charging an administrative fee of 3% of the amount put on the deposit Deposit currency: PLN 9

10 Current investment context PLN appreciation will be supported by the fact that the world s largest central banks (ECB, Fed, BoJ) took steps to support economic growth or to restore confidence in Eurozone. The factor, which deteriorates the value of the Polish currency is the discounting of scenario of deeper than expected by the market interest rate cuts by the Monetary Policy Council. The value of PLN to the dollar is derived from the EURUSD and EURPLN rate. Weakness of the euro and PLN may be determined by recurrent problems of excessively indebted Eurozone states. If effective tools are developed to combat the crisis, CEE currencies should again become of interest to investors. Continuous influx of foreign capital to the Polish bonds market protects from weakening of PLN. The Polish currency will not be supported by concerns about next year s economic growth, especially in the context of fulfilment of budgetary assumptions for

11 Risks connected with the investment The zloty, as the most liquid currency of the region, loses value whenever aversion to risk grows on the international market. The zloty also remain under the negative influence of data from the global economy, which indicate than business activity worldwide remains low. A risk factor is the situation in the US, connected with the fiscal cliff. The threat that with the start of 2013 temporary tax reductions will expire and public spending cuts will become necessary may lead to recession in the US economy in the first half of next year. Withering economic growth will make it hard for Europe to cope with the debt crisis and will lengthen the period of uncertainty on global financial markets. Reductions of interest rates in Poland will eliminate one of the key factors supporting increased interest in the Polish currency, which is the relatively high (compared with Eurozone) level of interest rates, which encourages taking advantage of carry trade, or investing capital borrowed in countries with lower interest rates, in assets of states with a higher cost of money. 11

12 USD/PLN rate chart Source: Bloomberg Weekly chart over 5-year period This example is used in order to present how the mechanisms underlying the product concept, work. All data and values are examples and in no case may they be treated as a guarantee or promise of reaching future results. Also it is not (nor information contained therein) recommendation, investment advice, offer or invitation, addressed to anyone (or to any group of persons) to conclude transactions on financial instruments. 12

13 Why does it make sense to buy the Package? The Package: Konto Oszczędnościowe + Lokata Inwestycyjna Feniks VI Pakiet gives many benefits: You get the possibility of generating an attractive yield on Lokata Inwestycyjna Feniks VI Pakiet up to 8% over the investment period ( 7,9564 % per annum ). Possibility of investing on the FX market without the risk of loosing capital. Interest rate on money during the subscription period 4% per annum. You get a guarantee of high interest rate on Konto Oszczędnościowe, as much as 5% per annum with full access to the money. You can make deposits and withdrawals of money on Konto Oszczędnościowe without loosing interest, which is a major convenience. Additionally we guarantee an interest rate on Konto Oszczędnościowe for as many as 6 months. You can manage you money in an optimised way by the combined offer. To set up the Package you need merely 2000 PLN. High availability of the deposit deposit amount in merely1000 PLN. We provide you with 100% guarantee and protection of principal. You do not pay any costs or fees connected with setting up the Package. 13

14 How is the yield calculated? Yield on the deposit depends on the average NBP rate for the USD/PLN currency pair. If the USD/PLN rate during the investment remains within the defined brackets an interest rate of 8% will be applied over the period of the investment ( 7,9564 per annum ). The initial bracket has a range of 40 groszy (initial rate -20 groszy, initial rate +20 groszy). For example for the initial rate of: 3,20 the initial bracket shall be 3,00-3,40. If the upper barrier of the initial bracket is exceeded during the investment, the customer will get a second chance a new bracket shall be defined, also with a width of 40 groszy (upper barrier of initial bracket -20 groszy, upper barrier of initial bracket + 20 groszy). For example: 3,40-0,20; 3,40 + 0,20; the new bracket is 3,20 3,60 Similarly if the lower barrier of the initial bracket is exceeded during the investment, a new bracket shall be defined, with a width of 40 groszy (lower barrier of initial bracket -20 groszy, lower barrier of initial bracket + 20 groszy). For example: 3,00-0,20; 3,00 + 0,20; the new bracket is 2,80 3,20 If both the initial as well as subsequent bracket is exceeded the customer will receive a return of invested principal. 14

15 How does Lokata Inwestycyjna Feniks VI Pakiet work? During the subscription period you can set up a deposit. In case of premature termination of the agreement you get paid the amount net of interest. During the investment period in case of premature termination of the agreement you get paid the deposit amount. NOTE: an administrative fee is charged from the current account of 3% of the deposit amount. Date of last observation Subscription period (4% p.a.) Investment period Start of subscription End of subscription* * The subscription period may be shortened if the defined pool is exhausted. Start of the investment Date of Determination of Initial Value Payment of interest for the subscription period End of investment (maturity date): transfer of principal and any yield to C/A 15

16 Scenario example 1/7 Assumptions: Setting up of Lokata Inwestycyjna in the amount of: PLN The check if the barrier was exceeded is done every day from the investment period of Lokata Inwestycyjna average NBP USD/PLN rate (initial value) 1st bracket 2nd bracket 3,2 3,00-3,40 NO NO Barriers 1 were not exceeded The customer gets a return of 100% principal + 8% yield Amount on maturity date = PLN (1+8%)= PLN It must be remembered that the final result of the investment may be affected by any tax burdens. This example is intended to present how the underlying mechanisms of the product concept work. All data and values are examples and in no way may they be treated as a guarantee of future results. It does not (nor information contained herein) constitute a recommendation, result of investment advice, an offer or invitation addressed to anyone (or any group of persons) to conclude transactions on a financial instrument or instruments. 16

17 Scenario example 2/7 Assumptions: Setting up of Lokata Inwestycyjna in the amount of: PLN The check if the barrier was exceeded is done every day from the investment period of Lokata Inwestycyjna average NBP USD/PLN rate (initial value) 1st bracket 2nd bracket 3,2 3,00-3,40 YES NO 3,20-3,60 NO NO Upper was exceeded; barriers of the 2nd bracket were not exceeded The customer gets a return of 100% principal + 8% yield Amount on maturity date = PLN (1+8%)= PLN It must be remembered that the final result of the investment may be affected by any tax burdens. This example is intended to present how the underlying mechanisms of the product concept work. All data and values are examples and in no way may they be treated as a guarantee of future results. It does not (nor information contained herein) constitute a recommendation, result of investment advice, an offer or invitation addressed to anyone (or any group of persons) to conclude transactions on a financial instrument or instruments. 17

18 Scenario example 3/7 Assumptions: Setting up of Lokata Inwestycyjna in the amount of: PLN The check if the barrier was exceeded is done every day from the investment period of Lokata Inwestycyjna average NBP USD/PLN rate (initial value) 1st bracket 2nd bracket 3,2 3,00-3,40 YES NO 3,20-3,60 NO YES Upper barrier of the 1bracket was exceeded; lower barrier of 2nd bracket was exceeded The customer gets a return of 100% principal Amount on maturity date = PLN It must be remembered that the final result of the investment may be affected by any tax burdens. This example is intended to present how the underlying mechanisms of the product concept work. All data and values are examples and in no way may they be treated as a guarantee of future results. It does not (nor information contained herein) constitute a recommendation, result of investment advice, an offer or invitation addressed to anyone (or any group of persons) to conclude transactions on a financial instrument or instruments. 18

19 Scenario example 4/7 Assumptions: Setting up of Lokata Inwestycyjna in the amount of: PLN The check if the barrier was exceeded is done every day from the investment period of Lokata Inwestycyjna average NBP USD/PLN rate (initial value) 1st bracket 2nd bracket 3,2 3,00-3,40 YES NO 3,20-3,60 YES NO Upper barrier of the 1bracket was exceeded, upper barrier of 2nd bracket was exceeded The customer gets a return of 100% principal Amount on maturity date = PLN It must be remembered that the final result of the investment may be affected by any tax burdens. This example is intended to present how the underlying mechanisms of the product concept work. All data and values are examples and in no way may they be treated as a guarantee of future results. It does not (nor information contained herein) constitute a recommendation, result of investment advice, an offer or invitation addressed to anyone (or any group of persons) to conclude transactions on a financial instrument or instruments. 19

20 Scenario example 5/7 Assumptions: Setting up of Lokata Inwestycyjna in the amount of: PLN The check if the barrier was exceeded is done every day from the investment period of Lokata Inwestycyjna average NBP USD/PLN rate (initial value) 1st bracket 2nd bracket 3,2 3,00-3,40 NO YES 2,80-3,20 NO NO Lower barrier of 1st bracket was exceeded; barriers of 2nd bracket were not exceeded The customer gets a return of 100% principal + 8% yield Amount on maturity date = PLN (1+8%)= PLN It must be remembered that the final result of the investment may be affected by any tax burdens. This example is intended to present how the underlying mechanisms of the product concept work. All data and values are examples and in no way may they be treated as a guarantee of future results. It does not (nor information contained herein) constitute a recommendation, result of investment advice, an offer or invitation addressed to anyone (or any group of persons) to conclude transactions on a financial instrument or instruments. 20

21 Scenario example 6/7 Assumptions: Setting up of Lokata Inwestycyjna in the amount of: PLN The check if the barrier was exceeded is done every day from the investment period of Lokata Inwestycyjna average NBP USD/PLN rate (initial value) 1st bracket 2nd bracket 3,2 3,00-3,40 NO YES 2,80-3,20 NO YES Lower barrier of 1st bracket was exceeded;, Lower barrier of 2nd bracket was exceeded The customer gets a return of 100% principal Amount on maturity date = PLN It must be remembered that the final result of the investment may be affected by any tax burdens. This example is intended to present how the underlying mechanisms of the product concept work. All data and values are examples and in no way may they be treated as a guarantee of future results. It does not (nor information contained herein) constitute a recommendation, result of investment advice, an offer or invitation addressed to anyone (or any group of persons) to conclude transactions on a financial instrument or instruments. 21

22 Scenario example 7/7 Assumptions: Setting up of Lokata Inwestycyjna in the amount of: PLN The check if the barrier was exceeded is done every day from the investment period of Lokata Inwestycyjna average NBP USD/PLN rate (initial value) 1st bracket 2nd bracket 3,2 3,00-3,40 NO YES 2,80-3,20 YES NO Lower barrier of 1st bracket was exceeded; Upper barrier of 2nd bracket was exceeded The customer gets a return of 100% principal Amount on maturity date = PLN It must be remembered that the final result of the investment may be affected by any tax burdens. This example is intended to present how the underlying mechanisms of the product concept work. All data and values are examples and in no way may they be treated as a guarantee of future results. It does not (nor information contained herein) constitute a recommendation, result of investment advice, an offer or invitation addressed to anyone (or any group of persons) to conclude transactions on a financial instrument or instruments. 22

23 Risk associated with investing Investments in structured products involve various types of risk. This may especially be credit risk, market risk, correlation risk, interest rate risk, liquidity risk, FX risk, maturity risk, risk of sale before maturity, political risk, natural disaster risk. Credit risk the Customer carries issuer s risk, not distributor s risk. Market risk the yield from a structured product depends on the behaviour of a specific market variable (e.g. FX rate). If the investor s expectations do not turn out to be correct, the amount paid out on maturity may be equal to guaranteed capital. The products (depending on the structure) may also generate yield lower than the growth/decrease of the underlying instrument. Detailed descriptions of risk connected with investing in structured products are available in the document Description of risk connected with financial instruments and products for private individuals in Bank Millennium S.A.. 23

24 Final comments All and any information contained in this publication is for information purposes only and does not constitute an offer, or a recommendation or an invitation addressed to anyone (or any group of persons whatsoever) to conclude a transaction involving the financial instruments presented herein. In particular the information contained in this publication does not constitute an offer in the meaning of the Civil Code of 23 rd April 1964 nor is it a service of investment, financial, tax, legal or any other advice. This publication contains the position of Bank Millennium S.A. ( Bank ) expressed on the basis of its own assessment of facts, which are important to the Bank as well as relevant legal provisions. The Bank assures that it made due efforts in order that the information contained in this publication is reliable and based on authoritative sources, however the Bank cannot guarantee that information obtained from sources outside the Bank is reliable, complete and up-to-date. Additionally the Bank informs that information and analyses contained in this publication are based on information coming from public sources, which were not verified independently by the Bank and moreover may be subject to periodical changes. The Bank shall not be held liable in any way for the financial consequences of performance by the customer of transactions on the financial instruments described herein. At the same time the Bank reserves the possibility of making changes to the form as well as content of this publication, at any time and without notice. The conditions contained herein are tentative. All and any prices and (or) examples of transactions serve only illustrative purposes and do not constitute an offer to conclude a transaction under such terms and conditions nor do they constitute an indication that a transaction under such terms and conditions is possible. Moreover no calculations or results presented herein constitute a guarantee of future gains. The actual terms and conditions of transactions on financial instruments shall be based on the arm s-length principle, as ascertained at its conclusion. All and any preliminary price quotations and analyses contained herein, have been prepared on the basis of assumptions and parameters reflecting the assessment or choice made by the Bank. The Bank does not guarantee in any way that the quotations or analyses are accurate, complete or reasonable. The risk of using the information contained herein, in particular as regards taking investment decisions on its basis, shall be borne exclusively by its recipient. Financial transactions involve risk, presented in detail in the Description of risk associated with financial instruments and products in Bank Millennium S.A 1), available in the Bank s outlets and on its website Whoever acquires a financial instrument, accepts and bears responsibility on account of tax liabilities imposed by valid regulations. With a view to the above risks and circumstances, customers of the Bank should have essential knowledge and experience to assess the nature of every contemplated transaction and risks connected with it. In case of any doubts customers should resort to the services of a tax, legal or investment advisor. The Bank shall provide all and any additional information reasonably requested by the customer, in order to enable him to assess the risks and nature of the transaction. Conclusion by the customer of transactions involving financial instruments is the basis for consideration that the customer has read the terms and conditions of the transaction as well as the related risk and has accepted them. Dissemination, distribution and trading of some financial products may be subject to restrictions with respect to certain persons and countries, in keeping with relevant legislation. It is for the customer to demonstrate legal capacity and authority to invest in the financial instrument. Offering and trading of financial instruments may be done only in compliance with relevant legal regulations. Information contained in this publication shall be made available to the recipient on a strictly confidential basis. The recipient is not authorised to copy, reproduce or furnish and make the information in whole or in part available in any other way to third parties (except its furnishing to professional advisors) without the Bank s prior written consent. Money deposited on the Investment Deposit/Savings Account is protected by BFG, in keeping with the Act on Bank Guarantee Fund. Protection is provided for 100% of the money, up to an amount not exceeding the equivalent in zloty of 100,000 euro, regardless of the number of accounts held in the Bank. Registered deposits of private persons are protected in keeping with art. 2 item 1 of the Act. TeleMillennium