Guaranteed Fund Forte

It is a new guaranteed fund of Komerční pojišťovna, a.s., broadening the investment strategy possibilities within the life insurance Vital Invest. The fund is suitable for all clients who would like to exploit the high yield potential of stock markets and, at the same time, want to increase the value of their money through the guaranteed appreciation.

The Guaranteed Fund Forte offers

• minimum 13% yield guaranteed as of the maturity of the fund
• potential yield up to 52% after 8 years (6.5% p. a.)
• maturity of the fund ranges from 3 to 8 years
• opportunity to participate in the growth of the world stock basket
• currency risk protection (the 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 in the minimum amount of CZK 50,000
• fund is not on offer because of the sold out of the tranche

How does the Guaranteed Fund Forte strategy work?

Appreciation for the first two years

13% guaranteed yield (6,5% p. a), which is credited at the moment of the fund´s maturity.

Appreciation in years 3 to 8

Floating yield rate 0–6.5% p. a.

If the fund achieves appreciation of 6.5% in the period between years 3 and 8, it is prematurely terminated and the 6.5% appreciation is paid out even for the previous years, regardless of the actual appreciation reached during these years. The client thus can gain a yield in the amount of 52% (8 × 6.5%) in year 8. The 6.5% appreciation can be reached if the value of any of the shares does not fall by 15% or more.

39% yield in year 6 (6.5% p. a.)

If the appreciation of 6.5% is achieved in year 6, the client receives the following yield: 6 × 6.5% = 39% (regardless of the actual performance in years 3, 4 and 5).<sup>*

*</sup>The given example is for demonstration only. It does not predict the future performance of the Guaranteed Fund Forte by any means.

34% yield after 8 years (4.26% p. a.)

If the fund has not been redeemed early (upon achievement of 6.5% p. a.), then after 8 years the client receives a yield in the amount of the actually accrued appreciation: 2 × 6.5% + 4.3% + 0% + 4.2% + 4% + 4.3% + 4.3% = 34.1%. However, 13% is always the minimum.^*

^*The given example is for demonstration only. It does not predict the future performance of the Guaranteed Fund Forte by any means.