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Guaranteed Fund Forte 4

The sale of Forte 4 is finished as its volume has already been sold out.

We present to you

Our Guaranteed Fund Forte 4 is offered under the Vital Invest insurance and it guarantees to our clients a 100% return on the investment into the fund upon the fund‘s maturity (after deduction of administrative costs). Clients have the opportunity to achieve a 30% yield in the third year provided that the basket of risky assets grows.

What is Guaranteed Fund Forte 4?

A new guaranteed fund offered by Komerční pojišťovna, a.s., which opens new possibilities for the investment strategy under the Vital Invest life insurance. This fund is perfect for clients who understand that there is a great potential for growth of share and commodity prices but are not willing to be exposed to a risk that the value of their investment might decrease.

Guaranteed Fund Forte 4 offers:

  • guarantee of a 100% return on the investment upon the fund’s maturity (after deduction of administrative costs)
  • possibility of a 30% yield after only 3 years (10 % p.a.)
  • possibility of a yield of up to 70% after 7 years (10 % p.a.)
  • attractive portfolio of underlying assets (American, West European and Chinese shares, commodity, currency strategies)
  • opportunity to participate in the growth of stock and commodity markets. Share and commodity prices are now several per cent under their historical maximum from 2008
  • protection against currency risk (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

Insurance contract elements in case of investing into the Guaranteed Fund:

  • single premium
  • minimum insurance period of 9 years
  • subscription period: 11/10/2010 – 28/01/2011 (or until the fund is sold out)

How does the Guaranteed Fund Forte 4 strategy work?

The content of the risky assets basket changes every month depending on the performance of these assets. Five underlying assets, having had the best performance in the previous month, are selected for the basket each month. Thanks to this strategy we are able to respond to changes in market trends more effectively and the probability of premature redemption of the fund is also higher.

Each month, the content of the risky assets basket is selected out of 7 stock and commodity indexes and 2 exchange rates formed by the “SG Best Allocator 2 Index“ (also referred to as the “Index“).

Title Asset Description
DJ Euro Stoxx 50 Index equity Blue-chips stocks of 50 significant European companies
Hang Seng Index equity Stocks of the largest companies trading on Hong Kong stock exchange
Dow Jones Industrial Average Index equity Blue-chips stocks of 30 significant American companies
London Gold Market Fixing Limited Index commodity Gold
SGI Smart WTI Long Excess Return Index commodity Crude Oil
SGI Industrial Metals Semi Dynamic Index commodity Industrial Metals (Aluminium, Copper, Lead, Nickel, Zinc)
SGI Agriculture and Livestock Static Index commodity Agriculture (Sugar, Wheat, Feeder Cattle, Cotton, Coffee, Soybeans, Live Cattle, Cocoa, Corn, Lean Hogs and Kansas Wheat)
CZK EUR Currency currency Represents the evolution of the number of Euro per Czech Koruna. An increase in CZKEUR represents an appreciation of the Czech Koruna against the Euro, whereas a decrease in CZKEUR represents a depreciation of the Czech Koruna against the Euro
EUR USD Currency currency Represents the evolution of the number of US dollar per Euro. An increase in EURUSD represents an appreciation of the Euro against the US Dollar, whereas a decrease in EURUSD represents a depreciation of the Euro against the US Dollar

How is the monthly performance of the SG Best Allocator 2 Index calculated?

The monthly performance of the Index (performance of 5 selected risky assets) is governed by the following rules:

  • if the performance of the Index for the relevant month ranges between −10 % and +4 %, the real performance of the Index is included in the monthly performance
  • if the performance of the Index for the relevant month is lower than −10 %, a value equal to −10 % is used for the calculation
  • if the performance of the Index for the relevant month is higher than +4 %, a value equal to +4 % is used for the calculation

According to the performance development of the SG Best Allocator 2 Index, the fund will mature in three to eight years.

Fund’s maturity after 3 years

  • if, by 10/02/2014, the sum of monthly Index performances is higher or equal to 20 %, the client will receive a 30% yield + 100 % of the initial investment (after deduction of administrative costs))

Fund’s maturity after 4 years

  • if, by 09/02/2015, the sum of monthly Index performances is higher or equal to 20 %, the client will receive a 40% yield + 100 % of the initial investment (after deduction of administrative costs)

Fund’s maturity after 5 years

  • if, by 08/02/2016, the sum of monthly Index performances is higher or equal to 20 %, the client will receive a 50% yield + 100 % of the initial investment (after deduction of administrative costs)

Fund’s maturity after 6 years

  • if, by 08/02/2017, the sum of monthly Index performances is higher or equal to 20 %, the client will receive a 60% yield + 100 % of the initial investment (after deduction of administrative costs)

Fund’s maturity after 7 years

  • if, by 08/02/2018, the sum of monthly Index performances is higher or equal to 20 %, the client will receive a 70% yield + 100 % of the initial investment (after deduction of administrative costs)

Unless the condition of the premature redemption is met within 7 years, the client will receive, upon the maturity of the fund (after 8 years), an amount according to the following rule:

  • if the sum of recorded monthly Index performances is positive after these 8 years, the client will receive the actual yield of the fund + 100 % of the initial investment (after deduction of administrative costs)
  • if the sum of recorded monthly Index performances is negative after these 8 years or equals 0, the client will only receive 100 % of the initial investment (after deduction of administrative costs)

Examples of the calculation of the Guaranteed Fund Forte 4 performance

Example 1 – fund’s maturity after 3 years (clients gain a 30% yield to their investment)

M1 M2 M3 M24 M34 M35 M36
Real monthly performance of Index 9.0% 3.7% 3.5% 2.0% −2.5% 0% 2.3%
Recorded monthly performance of Index *4.0% 3.7% 3.5% 2.0% −2.5% 0% 2.3%
Cumulative sum of monthly recorded performance of Index 4.0% 7.7% 11.2% 26.0% 24.0% 24.0% 26.3%
Premature redemption 100% + 30% = 130%

In this case, the total performance of the fund at the end of the third year exceeds 20 %; the fund is prematurely terminated and the client will receive 100 % of the investment (without administrative costs) + a 30% yield.

* if the real monthly performance of the Index for the particular month exceed +4 %, a value equal to +4 % is used for the calculation

Example 2 – fund’s maturity with a positive yield after 8 years

M1 M2 M3 M24 M94 M95 M96
Real monthly performance of Index 3.0% 1.9% −1.9% −4.5% 3.0% 0.6% 5.3%
Recorded monthly performance of Index 3.0% 1.9% −1.9% −4.5% 3.0% 0.6% 4.0%
Cumulative sum of monthly recorded performance of Index 3.0% 4.9% 3.0% 16.0% 29.0% 29.6% 33.6%
Redemption upon maturity 100% + 33.6% = 133.6%

In the case there was no premature redemption of the fund during the 8-year period the client will receive, upon the fund’s maturity, 100 % of the investment (without administrative costs) + final total performance of the Index amounting to 33.6 %.

Example 3 – fund’s maturity after 8 years

Clients receive 100 % of the investment (after deduction of administrative costs)

M1 M2 M3 M24 M94 M95 M96
Real monthly performance of Index 3.0% −4.1% 0.2% 1.0% −11.6% 0.5% −1.0%
Recorded monthly performance of Index 3.0% −4.1% 0.2% 1.0% *−10.0% 0.5% −1.0%
Cumulative sum of monthly recorded performance of Index 3.0% −0.9% −0.7% 3.0% −5.0% −3.8% −6.5%
Redemption upon maturity 100%

In this case there was no premature redemption of the fund during the 8-year period and the total performance of the fund was negative. Therefore the client receives 100 % of the investment without any yield upon the fund’s maturity.

* if the real monthly performance of the Index for the particular month is lower than −10 %, a value equal to −10 % is used for the calculation

The given examples are for demonstration only and they do not predict the future performance of Guaranteed Fund Forte 4 by any means.


How to arrange the insurance

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

Insurance terms and conditions