HomepageInsurance

Optimo Guaranteed Fund

The sale of the fund is finished.

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

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 1st to 6th 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 1st, 2nd, 3rd, 4th, 5th and 6th 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

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

Example 1 – he 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)

Example 2 – the 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).

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


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