Detail

Prague, 4 December 2006 - Komerční banka today rolled out another guaranteed fund, MAX 8 - světový zajištěný fond. This is an open-ended unit trust enabling clients to participate in the growth of global capital markets with a 100% guarantee of a return on their investment when the fund matures*. Units in MAX 8 - světový zajištěný fond can be purchased at all 367 KB branches, via the phonebanking service Expresní linka or by means of Mojebanka Internet banking.

MAX 8 - světový zajištěný fond is designed for conservative investors who would like to contribute to the development of the world's capital markets but do not want to assume the risk attached to equity investments. MAX 8 guarantees a 100% return on investments when the fund matures*; the investment term is five years.

The fund's performance is linked to the performance of the benchmark portfolio comprising 30 geographically and sectorally diverse shares in top international companies (e.g. Nestle SA, France Telecom SA, Volvo AB, RWE AG, Electrolux AB, Logica CMG PLC, Mitsubishi Corp, and Mattel Inc), of which each has the same initial weight of 3.3%. The final yield is the arithmetical average of the performance reported by these 30 shares on fund maturity; the lower performance limit is 1.45 times the least performing share and the upper performance limit is capped at 45%.

'This fund structure allows for interesting appreciation even if the benchmark portfolio stagnates or dips. If, for instance, none of the thirty shares making up the portfolio falls below its initial value, the fund structure guarantees a maximum yield of 45%. Guaranteed funds are a very popular investment instrument among our clients. Since 2004, when we launched the first in our series of guaranteed funds, clients have invested almost CZK 5 billion in these funds, of which CZK 0,9 bilion in MAX 7' explains Zdeněk Mojžíšek, Executive Director of Marketing at KB.

The minimum investment is CZK 10,000. The fund's subscription period is from 4 December 2006 to 5 March 2007. The fund duration is five years and one week as of the end of the subscription period, i.e. the fund will mature on 12 March 2012.

* After deducting initial fees.