Dynamic Deposit “Guaranteed Profit” – a safe gamble - Swedbank

Dynamic Deposit
“Guaranteed Profit” – a safe gamble
The “Guaranteed Profit” Dynamic Deposit is a safe long-term investment. It combines
advantages that will satisfy the most demanding of investors – effective participation
in financial market event and a guaranteed profit on a deposit in lats in the amount of
at least 10 % at the end of the deposit term. Of course, as with all Dynamic Deposits, on
this too there is also 100 % repayment of the basic deposit sum at the end of the term.
The unique “Guaranteed Profit” Dynamic Deposit is tagged to the “Efficiente” market index
which was launched by the world’s leading investment bank JP Morgan in July 2007.
“Efficiente” stands out from other indices because:
• it covers all of the main regions and investment directions (raw
materials, real estate, obligations, shares etc.).
• short-term fluctuations within the index are restricted in the
amount of 8%, thus supporting the following theoretical
principle for the formation of modern investment portfolios –
earn as much as possible determining the risk level that is most
appropriate for you.
• depending on the situation in the market and expert forecasts,
the components of the index are reviewed and the structure of
the components incorporated within the index is changed once
every quarter.

About the Index
The “Efficiente” Index is based on a portfolio of 9 global
indices which covers all the principal types of assets and
geographical regions: developed nation shares (27 %), newly
developing nation shares (24 %), global obligations (20 %), as
well as alternative types of shares (29 %): raw materials, real
estate and risk capital.
Index investment placement
Every quarter, the strategy of the index aims to determine the
optimal proportion for each of the nine components based on
the profitability of the index and the fluctuation of each component
and their mutual interaction during the last six months.
The weight of each “Efficiente” component is amended by
a step of 5 % and is subject to an individual limit and sector
limit to avoid excessive concentration in one asset or sector.
29 %
27 %
Alternative
assets 29 %
Developed nation
shares 27 %
Index components analysis
In carrying out a theoretical examination test with a set 8 %
risk factor, the developers of the index proved that in periods
when there is a crisis in the financial markets, there is a
significant reduction in the proportion of shares in the index,
whilst there is an increase in the proportion of obligations and
raw materials which ensures greater and more stable profitability.
During a period when financial markets experienced
falls during the so-called “bear market” (2000-2003) when
investors were prepared for price falls, “Efficiente” demonstrated
significantly better profitability. In contrast, during
the period of the “bull market” (2004-2007) when everybody
expected an increase in prices and speculated on the level
of changes, “Efficiente” returned a profit equivalent to that
of the market. The hypothetical average profitability of the
components in the Index during the period from January 1995
to July 2007 was 14.1 % annually whilst the short-term fluctuations
amounted to 7.9 %.
24 %
20 %
Global
obligations 20 %
Newly developing
nation shares 24 %
Division of investment sectors
Sector Sector limit Index components Bloomberg Asset limit
Developed Equity 50 % S&P 500 Total Return Index SPTR Index 25 %
DJ EURO STOXX 50 Return Index SX5T Index 25 %
TOPIX Total Return Index TPXDDVD Index 25 %
Global Dept 50 % JPMorgan Global Government Bond Index (EUR Hedged) JHUCGBIG Index 25 %
JPMorgan 3 Month EUR Cash Index JPCAEU3M Index 50 %
Emerging Markets 50 % JPMorgan EMBI + Index JPEMCOMP Index 25 %
MSCI Daily TR Gross EM USD GDUEEGF Index 25 %
Alternative Investments 50 % EPRA Total Return Index RPRA Index 25 %
DJAIG Commodity TR Index DJAIGTR Index 25 %
Three Year Historical Profitability*
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
-10%
Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08
Base asset Deposit, LVL 40 Deposit, EUR 41
* Historical profitability does not guarantee identical profitability in future.
Dynamic Deposit Special Terms and Conditions
Application period: 27.10.2008–27.11.2008
Deposit starting date: 28.11.2008
Deposit closing date: 28.11.2011
Deposit term:
Base asset:
Minimum transaction
sum:
3 years (1095 days)
“Efficiente” Market Index which has been
developed by the world’s leading investments
bank JP Morgan (Bloomberg code: EFJPEH8E)
Dynamic Deposit LVL 40 – 500
Dynamic Deposit EUR 41 – LVL 1000
Participation size: Dynamic Deposit LVL 40 – 100 %
Dynamic Deposit EUR 41 – 100 %
Guaranteed revenue:
Dynamic Deposit LVL 40 – 10 % during the term
or 3.29 % annually
Dynamic Deposit EUR 41 – 5 % during the term
or 1.64 % annually