Guaranteed Fund Forte 2

Our new investment strategy concerning the insurance Vital Invest – Guaranteed Fund Forte 2.

The fund guarantees that the client will receive the sum invested into the fund plus a yield ranging between 13% and 52% upon the maturity of the fund.

It is a new guaranteed offered by Komerční pojišťovna, a.s., that broadens the investment strategy possibilities in the life insurance Vital Invest. The fund is suitable for all clients who would like to exploit the potential of stock markets and prefer some kind of guarantee at the same time.

The Guaranteed Fund Forte 2 offers

• minimum 13% yield guaranteed as of the fund maturity
• potential yield up to 52 % after 8 years (6.5 % p. a.)
• maturity of the fund ranges from 3 to 8 years
• opportunity to participate in the growth of the world stock basket
• currency risk protection (the potential negative impacts of the Czech Crown strengthening are reinsured and will not affect the portfolio yield)
• the portfolio is managed by professionals from the French company Société Générale, which is one of the largest and most stable banks operating in the Eurozone

Elements of the insurance contract in case of investing into the Guaranteed Fund 2

• single premium
• minimum insured period of 9 years
• subscription period from 18. 1. 2010 to 30. 4. 2010 (or until the tranche is sold out)

How does the Guaranteed Fund Forte strategy works?

Appreciation for the first two years

13% guaranteed yield (6.5% p. a) - it is credited at the moment of the fund´s maturity.

Appreciation in the years 3 to 8

Floating yield rate 0–6.5% p. a.

If the fund achieves appreciation of 6.5% in the period between the years 3 and 8, it is prematurely terminated and the 6.5% appreciation is paid out even for the previous years, regardless of the actual appreciation reached during these years. Thus the client can gain a yield in the amount of 52% (8 × 6.5%) in the year 8.

39% yield in the year 6 (6.5% p. a.)

If the appreciation of 6.5% p. a. is achieved in the year 6, the client receives the following yield: 6 × 6.5% = 39% (regardless of the actual performance in years 3, 4 and 5)^*.

^*The given example is for demonstration only. It does not predict the future performance of the Guaranteed Fund Forte by any means.

34.1% yield after 8 years (4.26% p. a.)

If the fund has not been redeemed early (upon achievement of 6.5% appreciation p. a.), then after 8 years the client receives a yield in the amount of the actually accrued appreciation: 2 × 6.5% + 4.3% + 0% + 4.2% + 4% + 4.3% + 4.3% = 34.1%. However, 13% is always the minimum.^*

^*The given example is for demonstration only. It does not predict the future performance of the Guaranteed Fund Forte by any means.