Optimo Guaranteed Fund

Subscription period 17 October 2011 – 27 January 2012 (or until fund is sold out).

The sale of the fund is finished.

Introduction

The Optimo Guaranteed Fund within the framework of Vital Invest insurance guarantees 100% return on the amount invested into the fund at the fund’s maturity (after deducting administrative fees). The total yield for the client is unlimited and if the SG Harmonia reference index growths, the yield can reach very interesting values.

What is the Optimo Guaranteed Fund?

This is a new guaranteed fund in the offer of Komerční pojišťovna, a.s., which expands the options for investment strategy within the framework of Vital Invest life insurance. The fund is suitable for conservative clients who do not want to risk a decline in the value of their investment, yet perceive the benefits and potential of yields from the fund owing to the active management of a diverse range of reference assets (shares, commodities, bonds, real estate, etc.).

The Optimo Guaranteed Fund offers:

Guaranteed 100% return of invested funds at the maturity date of the fund (after deducting administration fees)
Locking of the highest annual performance attained after the 1^st to 6^th year of fund duration
Active management of the representation share of reference indexes based on their past performance and volatility
Portfolio management by experts from the French company Société Générale, one of the largest and most stable banks in the Eurozone

Subscription period	17 October 2011 – 27 January 2012 (or until fund sells out)
Fund maturity	6 years; date of fund maturity: 5 February 2018
Premium payment to the Optimo Guaranteed Fund	One-off / extraordinary premium

How does the Optimo Guaranteed Fund investment strategy work?

Fund performance depends on the performance of the SGI Harmonia strategic index invested into various classes of assets, such as shares or bonds on developed and emerging markets, commodities, real estate companies, gold and inflation.

Characteristics of the SGI Harmonia index

Performance of the SG Harmonia index depends on the performance of 9 indexes and 2 investment funds that cover a wide range of assets. The representation share of individual reference assets in the SG Harmonia index is actively managed according to their past performance and volatility, so as to guarantee optimisation of the fund’s investment profile and its potential performance.

The SGI Harmonia index may be broken down into the following assets:

Reference asset	Brief description of reference asset
EURO STOXX 50	Shares Europe - index consisting of 50 shares of leading European companies
S&P 500 Composite	Shares USA - index consisting of 500 shares representing all the most important industrial sectors in the USA
TOPIX TR Index	Shares Japan - index consisting of company stocks traded on the Tokyo stock market
iShares MSCI Emerging Markets Index Fund	Emerging markets shares – funds that copy the MSCI TR Emerging Markets index, invested into 21 emerging countries like China, Brazil, Korea, Malaysia, Indonesia and others
EMTS (EMTX) 1-3Y	Bonds Europe - index focused on the performance of the largest and most traded state bonds in the Eurozone with a maturity of 1 to 3 years
EMTS (EMTX) 10-15Y	Bonds Europe - index focussed on the performance of the largest and most traded state bonds in the Eurozone with a maturity of 10 - 15 years
Franklin Templeton Emerging Markets Bond Fund	Emerging market bonds – fund investing into bonds of publicly tradable companies from emerging markets
EMTS EMTXI GLB INFL LINKED	Inflation – Eurozone inflation index focussed on state bond whose yield is linked to inflation
S&P GSCI Commodity Total Return	Commodities – commodity index taking into account the development of key commodity prices, such as oil, heating oils, natural gas, industrial and precious metals and crop commodities
GOLDLNPM Index	Gold – commodity index taking into account gold price development
FTSE EPRA/NAREIT DEV EUROPE	Real estate market - index consisting of shares of the most trade real estate companies in Europe

How the performance of the SGI Harmonia strategic index is calculated

Monthly Index performance = real monthly Index performance

Recorded monthly Index performance

If the value of the monthly Index performance is positive, 80% of this value is recorded
If the value of the monthly Index performance is negative, this value is recorded

Based on the recorded monthly Index performance, the cumulative index performance is then calculated. Each cumulative I ndex performance attained after the 1^st, 2^nd, 3^rd, 4^th, 5^th and 6^th year will be locked. The highest value of the 6 locked values will be equal to the value of yields paid as of fund maturity.

Upon fund maturity, the client will obtain:

100% of the entered capital (after deducting administrative fees)
+
Highest of the annual cumulative Index performance (at worst 0)

Examples of calculation of Optimo Guaranteed Fund performance

The said examples are illustrative only and by no means forecast the future performance of the Optimo Guaranteed Fund.

Example 1 – he client receives a yield of 48.1% on their investment

**Client receives a yield of 48.1% on their investment**
Month	Start	M1	M2	M12	M24	M36	M48	M60	M72
Index performance	100	104	108	121	141	152	164	159	155
Monthly Index performance		4,0%	3,8%	3,4%	3,6%	4,9%	4,5%	2,6%	2,0%
Recorded monthly Index performance		3,2%	3,0%	2,7%	2,9%	3,9%	3,6%	2,1%	1,6%
Cumulative performance for past months		3,2%	6,3%	16,1%	24,6%	37,1%	48,1%	38,8%	40,2%
Payment upon maturity	100% + Max [ 0% ; 48,1% ] = 148,1%

In this case, a yield of 48.1% is paid upon fund maturity, because the highest attained annual Index performance was attained in the fourth year of fund duration and thereby locked.

Example 2 – the client obtains 100% of the invested funds (after deducting administrative fees)

Client obtains 100% of the invested funds (after deducting administrative fees)
Month	Start	M1	M2	M12	M24	M36	M48	M60	M72
Index performance	100	98	93	89	86	97	92	85	82
Monthly Index performance		-2,0%	-5,1%	-3,3%	-5,5%	-2,0%	-4,2%	-2,3%	-6,8%
Recorded monthly Index performance		-2,0%	-5,1%	-3,3%	-5,5%	-2,0%	-4,2%	-2,3%	-6,8%
Cumulative performance for past months		-2,0%	-7,0%	-6,2%	-4,5%	-5,0%	-8,0%	-3,3%	-8,7%
Payment upon maturity	100% + Max [ 0% ; -3.3% ] = 100,0%

In this case, the highest attained annual Index performance attained negative values. Nevertheless, thanks to the guaranteed return of the invested among, the client will obtain 100% of the invested resources as of the fund’s maturity (after deducting administrative fees).

Documents

Insurance Conditions Of Unit Linked Life Insurance Vital Invest (378 kB)PDF

How to arrange the insurance

You can obtain our products at any branch of Komerční banka. For more information call the Call centrum of Komerční pojišťovna using the free Info Line 800 10 66 10.

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