Hungarian funds
UniCredit Return Fixed Guaranteed Fund
| Duration: | from September 2007 to September 2010 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Invetsment target: | To assure yields originating from the performance of U.S., Japanese and European companies with the biggest financial muscle, while investors do not risk their invested capital as it is by all means being repaid at maturity. | ||||||||||||||||||||||||||||||||||||||||||||||||
| Capital Guarantee: | 100 % Redemption guarantee for the invested capital is full and unlimited. Namely, irrespectively of all market processes the deposited amount is fully repaid at expiry date. Bank guarantee is covered by UniCredit Bank. | ||||||||||||||||||||||||||||||||||||||||||||||||
| Shares of companies with the strongest capital in the world: | UniCredit Return Fixed Capital Guaranteed Fund's portfolio in based on an international equity basket consisting of 15 companies. The basket is made up of the five leading equities of the world's three most developed economic regions each. The Fund is building on the performances of the biggest Western-European, Japanese and USA companies' quality shares. All shares are present at an equal, 6.67% weight in the Fund's portfolio. Equity basket:
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| Return possibilities also on stagnant or moderately decreasing markets: | The Fund's returns are not directly depending on the yields of shares, but on whether their rates have dropped below a certain level after the launch. Therefore achieving a 15% return is possible on stagnant or moderately decreasing markets as well. | ||||||||||||||||||||||||||||||||||||||||||||||||
| Return payments: | What maximum yields can be achieved with the Fund? The Fund has the potential to attain a 15% yield each year. Your investment might therefore bring you a 45% nominal return.
What does the yield extent depend on? The Fund's returns are not directly dependent on the yields of shares, but on whether their rates have dropped below a threshold after the launch. Therefore they are not pending on fast growing markets. The threshold effecting return payments will be between 65% and 75%. Its exact value will be adjusted depending on the market processes around 70% by the Fund Managers.
Calculating the final returns Investors can expect a 15% yield credit per year in the ideal case, - all together 45% in three years which is paid at the end of the term. If none of the shares' rates falls below the threshold during the whole year, this is considered to be the ideal case - in which 15% yield is guaranteed in that year. In case of threshold crossing, the yield will not be credited, however it will not be lost but will be placed in the bonus yield category. This means that if no threshold crossing happens in the following year, the yield of the actual year is due to be credited along with the stored bonus yields of the previous year(s). This is essential in order not to loose yields of a worse year but get them retroactively in a good year. According to this yield calculating method 45%, 30%, 15% or 0% yields payment is possible at the end of term depending on the shares' performances. | ||||||||||||||||||||||||||||||||||||||||||||||||
| Free subscription, on discounted rates: | No buying or redemption fees are charged to investors. During subscription period the 10,000 HUF value investment fund units can be subscribed on discounted rates in the UniCredit Bank branches.TD> | ||||||||||||||||||||||||||||||||||||||||||||||||
| Risks: | The fund is of moderate risks. The capital guarantee feature provides a safety net for the invested capital, therefore even in the worst case you cannot loose the capital. Possible bigger amplitudes of the equity basket's elements can endanger the achievement of the 15% yield a year. These risks were reduced by the Fund Manager by choosing an equity basket consisting of the biggest and strongest shares on the given markets. Another mean for lowering risks is the bonus yield category, which in a favourable situation makes earmarked yields of a poor year possible to be paid in the following year(s). | ||||||||||||||||||||||||||||||||||||||||||||||||
| Crediting subscribed capital and the yields attained: | until 12 October 2010 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Assets: | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| Custodian bank: | UniCredit Bank Hungary Zrt. | ||||||||||||||||||||||||||||||||||||||||||||||||
| Auditor: | Deloitte Könyvvizsgáló és Tanácsadó Kft. | ||||||||||||||||||||||||||||||||||||||||||||||||
| Distribution: | UniCredit Bank until 21. Sept, 2007 Later: On the Budapest Stock Exchange |