Private Portfolio

Investment strategy matched with risk tolerance

When concluding the agreement, it is crucial to select the most appropriate investment strategy. In selecting the investment strategy, give careful consideration to the following issues:

• What is the level of risk you are willing to expose your investments to (a higher earning potential also entails a higher probability of loss);
• When will you want to access your investment or, in other words, what is your investment horizon.

With your choice of strategy you agree to the main conditions of investment, namely, the assets and financial instruments your money will be invested in, the risks and the recommended investment horizon.

We offer a choice of five investment strategies:

• Capital Preservation Strategy
• Real Value Strategy
• Balanced Strategy
• Growth Strategy
• Aggressive Growth Strategy

If necessary, our financial consultants will be happy to assist you with choosing your most appropriate strategy.

The selected investment strategy may be changed free of charge.

Professional investment management

Portfolios are managed by a professional team of Swedbank Group investment experts using an extensive analytical base and the industry’s latest management methods. Private portfolios are managed in cooperation with Swedbank Robur, a Swedbank Group company with a proven track record from 1967. Robur has been named the Nordic region’s best investment management company for three consecutive years.

Selection of funds is based on quantitative analysis, measuring historical performances and risk levels of funds, as well on qualitative analysis where the fund management and investment processes are assessed.

If the financial market situation calls for any change - the balancing of investments or replacement of certain investments - it will be done automatically in your portfolio. All changes in the portfolio are made at the then-current fund unit prices, without charging any extra fees.

Flexible contributions

You can set up the Private Portfolio Contract with automatic monthly contributions or with a one-off contribution (anywhere from EUR 1000) and later pay additional contributions into the investment contract whenever and how much you choose to. The minimum amount of monthly contributions is EUR 50.

Also, you can withdraw money from the investment at any time. During the first five years, the contract termination fee is 0.5% of the contract's cash value, and later the termination is free of charge. If you make of the statutory personal income tax benefits, then terminating the contract within the first ten years is not recommended as otherwise any tax refunds received will need to be paid back to the state.

Regular investments in the Private Portfolio allow avoiding the so-called untimely investment (i.e. buying fund units when the prices are the highest) - if the same amount is invested each month, you will buy units at various prices, consequently reducing the risk of buying fund units at highest prices.

Keeping track of savings easily via Internet Banking

Our Internet Banking site provides a detailed report of your Private Portfolio and information about the current value of investment, amounts paid and withdrawn, fees applicable to the contract, and the yield both in numbers and in the form of a chart. There you will also find the monthly portfolio report on changes made in investments, a brief overview of financial market developments and, of course, the portfolio's investment result.

Likewise, you can make any alternations to the contract via Internet Banking, such as change the beneficiary or payment details.

Personal income tax

The tax rate for income earned under endowment life insurance contracts is 20%. In case of Private Portfolio, the PIT is calculated on and withheld only from the payout at the end of the contract; hence, no tax is applied on doing rebalancing within the same strategy or on change of strategy.

Moreover, the capital gains tax is calculated, withheld and transferred to the state budget by the insurer. It means that the customer won’t need to make the calculations or file tax returns to the State Revenue Service.

Personal income tax refunds

According to the law on Personal income tax you may receive a 20% personal tax refund for amounts transferred that do not exceed 10% of your annual gross salary and the aggregate limit of 4000 EUR.

Example

Gross monthly salary: 800 EUR
Amount deposited monthly: 40 EUR
Amount deposited yearly: 40 * 12 = 480 EUR
Personal income tax refund: 480 * 20% = 96 EUR

Key information document