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Guaranteed Fund Forte 8

The sale of Forte 8 is finished.

We present to you

Our Guaranteed Fund Forte 8 which is offered under the Vital Invest insurance programme and guarantees to our clients a 90% return on their investment upon the fund’s maturity (after deduction of administrative costs). The risk of loss is limited here (10 % in total maximum) and is compensated by the higher yield potential (up to 10 % per year). Clients have the opportunity to achieve a 30% yield after the third year of the fund’s existence provided that the underlying stock index “SGI Euro Equity“ grows (10 % per year).

What is Guaranteed Fund Forte 8?

It is a new guaranteed fund offered by Komerční pojišťovna, a.s., which opens new possibilities for investing within the Vital Invest life insurance. The fund is perfect for clients who understand that there is a potential for growth of stock prices of prominent European companies but are not willing to be exposed to the risk that the value of their investment might decrease.

Guaranteed Fund Forte 8 offers:

  • guarantee of a 90% return on investment upon the fund’s maturity (after deduction of administrative costs)
  • possibility of a 30% yield after only 3 years (10 % per year)
  • opportunity to participate in the growth of shares of prominent European companies
  • effect of locking the highest performance achieved after year 1, 2, up to year 8 of the fund’s existence
  • protection against the 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

The insurance contract’s elements when investing into Guaranteed Fund Forte 8:

  • single premium
  • minimum insurance period of 9 years
  • subscription period: (18/04 – 29/07/2011 or until the fund is sold out)

How does the investment strategy of Guaranteed Fund Forte 8 work?

Performance of Fund Forte 8: the fund’s performance and maturity depends on the performance of the SGI Euro Equity strategic index (referred to here as “the Index“)

Index characteristics

Performance of the Index depends on the performance of the stock index “Euro STOXX 50“ in Czech crowns, supplemented by active volatility management. The Euro STOXX 50 measures performance of stock titles of 50 leading European companies.

Fund’s maturity: 3 – 8 years; the fund shall become mature no later than by 16 August 2019

How is the monthly performance of the Index calculated?

The monthly performance of the Index is governed by the following principles:

  • if the performance of the Index for the relevant month ranges between -10 % up to +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

Effect of locking the highest performance achieved after year 1, 2, up to year 8 of the fund’s existence

The highest annual performance of the Index (i.e. a sum of monthly performances of the Index after year 1, 2, up to year 8 of the fund’s existence) is locked and may influence the fund’s maturity after year 3 (a) and the amount of yield after year 8 (b).

  • a) if the sum of monthly Index performances after year 1 or 2 of the fund’s existence is higher than or equal to 10 %, the fund becomes mature ahead of schedule after year 3 regardless of the total value of monthly Index performances after year 3.
  • b) the value of the fund upon the fund’s maturity (after 8 years) equals the highest of 8 annual Index performances achieved (i.e. a sum of monthly performances of the Index after year 1, 2, up to year 8 of the fund’s existence) and this value cannot be lower than -10 %.

According to the performance development of the Index, the fund will mature in three to eight years:

Fund’s maturity after 3 years

  • if the sum of monthly Index performances is higher than or equal to 10 % by one of the following dates: 08/08/2012, 09/08/2013, 08/08/2014, the client will receive a 30 % yield + 100 % of the initial investment (after deduction of administrative costs)

Fund’s maturity after 4 years

  • if the sum of monthly Index performances is higher than or equal to 10 % by 10/08/2015, the client will receive a 40% yield + 100 % of the initial investment (after deduction of administrative costs)

Fund’s maturity after 5 years

  • if the sum of monthly Index performances is higher than or equal to 10 % by 09/08/2016, the client will receive a 50% yield + 100 % of the initial investment (after deduction of administrative costs)

Fund’s maturity after 6 years

  • if the sum of monthly Index performances is higher than or equal to 10 % by 09/08/2017, the client will receive a 60% yield + 100 % of the initial investment (after deduction of administrative costs)

Fund’s maturity after 7 years

  • if the sum of monthly Index performances is higher than or equal to 10 % by 08/08/2018, the client will receive a 70% yield + 100 % of the initial investment (after deduction of administrative costs)

Unless the premature redemption condition is met within 7 years, the client will receive, upon the maturity of the fund (after 8 years), the following amount: 100 % of the initial investment (after deduction of administrative costs) + a yield the amount of which equals the highest annual Index performance achieved (i.e. a sum of monthly Index performances after year 1, 2, up to year 8 of the fund’s existence); and this value cannot be lower than -10 %. The client will always receive no less than 90 % of the initial investment (after deduction of administrative costs).

Examples of the calculation of Guaranteed Fund Forte 8 performances

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

Example 1 - fund’s maturity after only 3 years (clients gain a 30% yield to their investment)
M1 M2 M11 M12 M13 M22 M23 M24 M25 M34 M35 M36
Monthly performance of Index 5,0 % 4,8 % ‑10,9 % 0,9 % ‑2,8 % 1,9 % ‑0,9 % 0,9 % 1,9 % 0,9 % 0,9 % 0,0 %
Recorded monthly performance of Index 4,0 % * 4,0 % ‑10,0 % * 0,9 % ‑2,8 % 1,9 % ‑0,9 % 0,9 % 1,9 % 0,9 % 0,9 % 0,0 %
Cumulative sum of monthly recorded performances of Index 4,0 % 8,0 % 6,6 % 7,5 % 4,7 % 6,8 % 5,9 % 6,8 % 8,7 % 10,6 % 11,5 % 11,5 %
Locking effect 7,5 % 7,5 % 11,5 %
Paid out prematurely 100 % + 30 % = 130 %

In this case, the total Index performance at the end of year 3 is higher than 10 %; the fund is prematurely terminated and the client will receive 100 % of the investment (minus administrative costs) + a 30% yield.

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

** if the real performance of the Index for the relevant month falls behind -10 %, a value equal to -10 % is used for the calculation

Example 2 – fund’s maturity after only 3 years thanks to the effect of locking the highest performances (clients gain a 30% yield to their investment)

Example 2 – fund’s maturity after only 3 years thanks to the effect of locking the highest performances (clients gain a 30% yield to their investment)
M1 M2 M11 M12 M13 M22 M23 M24 M25 M26 M34 M35 M36
Monthly performance of Index 5,0 % 4,8 % 0,9 % 0,9 % ‑2,8 % 0,0 % 1,8 % 0,0 % ‑2,7 % 1,8 % 0,9 % 1,9 % 0,0 %
Recorded monthly performance of Index 4,0 % 4,0 % 0,9 % 0,9 % ‑2,8 % 0,0 % 1,8 % 0,0 % ‑2,7 % 1,8 % 0,9 % 1,9 % 0,0 %
Cumulative sum of monthly recorded performances of Index 4,0 % 8,0 % 6,6 % 7,5 % 4,7 % 9,5 % 11,3 % 11,3 % 8,6 % 10,4 % 6,9 % 8,8 % 8,8 %
Locking effect 7,5 % 11,3 % 11,3 %
Paid out prematurely 100 % + 30 % = 130 %

In this case, the total Index performance at the end of year 2 is higher than 10 % and thanks to the effect of locking performances the fund is prematurely terminated after year 3 although the total Index performance after year 3 does not exceed the 10% limit. The client will receive 100 % of the investment (minus administrative costs) + a 30% yield.

Example 3 – fund’s maturity with a positive yield after 8 years

Example 3 – fund’s maturity with a positive yield after 8 years
M1 M2 M12 M13 M14 M22 M23 M24 M25 M48 M60 M72 M84 M96
Monthly performance of Index 5,0 % 4,8 % 0,9 % ‑2,8 % 1,9 % 1,9 % ‑0,9 % 0,9 % 0,9 %
Recorded monthly performance of Index 4,0 % 4,0 % 0,9 % ‑2,8 % 1,9 % 1,9 % ‑0,9 % 0,9 % 0,9 %
Cumulative sum of monthly recorded performances of Index 4,0 % 8,0 % 7,6 % 4,8 % 6,7 % 6,8 % 5,9 % 6,8 % 7,7 % 7,9 % 9,2 % 6,9 % 9,1 % 8,5 %
Locking effect 7,6 % 7,6 % 7,9 % 9,2 % 9,2 % 9,2 % 9,2 %
Paid out prematurely 100 % + 9,2 % = 109,2 %

In this case, the fund did not become mature ahead of schedule during 8 years of its existence and the client will receive on the day of the fund’s maturity 100 % of the investment (minus administrative costs) + the final total performance of the Index in the amount of 9.2 %.

Example 4 – fund’s maturity after 8 years (clients gain 100 % of their investment after the administrative costs have been deducted) reduced by the final total performance of the Index

Example 4 – fund’s maturity after 8 years (clients gain 100 % of their investment after the administrative costs have been deducted) reduced by the final total performance of the Index
M1 M2 M12 M13 M22 M23 M24 M25 M36 M48 M60 M72
Monthly performance of Index 5,0 % ‑7,6 % 8,9 % ‑3,1 % ‑1,0 % 0,0 % 1,0 % ‑2,0 % ‑1,0 %
Recorded monthly performance of Index 4,0 % ‑7,6 % 4,0 % ‑3,1 % ‑1,0 % 0,0 % 1,0 % ‑2,0 % -1,0 %
Cumulative sum of monthly recorded performances of Index 4,0 % ‑3,6 % ‑4,6 % ‑7,7 % ‑4,3 % ‑4,3 % ‑3,3 % ‑5,3 % ‑2,1 % ‑3,2 % ‑1,5 % ‑5,5 %
Locking effect ‑4,6 % ‑3,3 % ‑2,1 % ‑2,1 % ‑1,5 % ‑1,5 %
Paid out prematurely 98,5 %

In this case, the fund did not become mature ahead of schedule during 8 years of its existence and the total Index performance was negative. The client will therefore receive 100 % of the investment (minus administrative costs) reduced by the final total performance of the Index (-1.5 %).

The examples given are for demonstration only and they do not predict the future performance of Guaranteed Fund Forte 8 by any means.

Now on offer also Guaranteed Fund Forte 7 with the guarantee of 100% return on the investment (after deduction of administrative costs) and a potential to achieve 7% yield per year. More


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.