Foreign funds

Product description

What are investment funds?

Foreign investment funds offer unlimited investment possibilities, top quality management and properly diversified investment portfolio.

These funds issue participation titles that - in the legal sense - are close to participation units issued by Polish funds.

Like Polish funds, foreign funds are aimed at achieving the investment objective that may include - depending on the fund's profile and type - achievement of above-average profit, balanced or stable growth of funds invested, protection of capital against inflation or security of the invested capital.

The range of foreign funds that we offer provides you with access to all asset classes, starting from stock, through bonds, commodities, futures contracts, to very complex investment strategies. In addition, the geographic range of the foreign funds and their insight in world markets enables clients to freely diversify their investment portfolios, depending on their needs or investment objectives.

Prestige offers foreign funds managed by the international investment company Black Rock Global Funds and by the Polish company - Millennium TFI.

Benefits

Foreign investment funds enable investing in global stock, bond, FX, real estate and other markets. Diversification of the investment asset classes as well as sectoral and geographic diversification allow to greatly reduce the portfolio risk and increase the potential profit on investment. When investing in foreign funds, you may choose from EUR or USD BlackRock funds or subfunds of the Millennium Specjalistyczny Fundusz Inwestycyjny Otwarty Funduszy Zagranicznych (Millennium Specialised Open Investment Fund of Foreign Funds)  fund in EUR or USD.

• BlackRock funds

For clients who want to invest directly in foreign funds, we offer a selection of funds managed by BlackRock, a world-leading fund management company. The BlackRock funds range offers various funds with innovative investment strategies that enable you to invest all over the world in different classes of assets in EUR and USD. The most popular funds among clients are:

BlackRock funds are characterised by high quality management, which is confirmed by the scores from the best rating agencies.

• BGF Fixed Income Global Opportunities USD
• BGF Fixed Income Global Opportunities Hedged EUR
• BGF Fixed Income Global Opportunities Hedged PLN
• BGF Local Emerging Market Short Duration Hedged PLN
• BGF Local Emerging Market Short Duration EUR
• BGF Local Emerging Market Short Duration Hedged EUR
• BGF Local Emerging Market Short Duration USD
• BGF Global Allocation A2 EUR
• BGF Global Allocation A2 USD
• BGF Global Allocation Hedged A2 PLN
• BGF Global Allocation Hedged A2 EUR
• BGF Latin America A2 EUR
• BGF Latin America A2 USD
• BGF Latin America Hedged A2 PLN
• BGF World Gold A2 EUR
• BGF World Gold A2 USD
• BGF World Gold Hedged A2 EUR
• BGF World Mining A2 EUR
• BGF World Mining A2 USD
• BGF World Mining Hedged A2 PLN
• BGF World Mining Hedged A2 EUR
   

Millennium Specjalistyczny Fundusz Inwestycyjny Otwarty Funduszy Zagranicznych is an umbrella fund with five subfunds. You can invest in euro or dollars, select the investment strategy that best matches your preferences and change it without the need to pay capital gains tax. The subfund investment portfolios are developed based on analyses and recommendations of the Wealth Management, a world leading team of experts in investment funds assessment. In addition, all the funds of Millennium SFIO Funduszy Zagranicznych may be purchased in PLN.

Risks

Foreign investment funds are managed by investment companies investing in assets on foreign markets. Certain foreign investment funds may specialise in geographical markets or specific sectors and invest their assets in securities of issuers originating from a specific country/region of the world or a specific sector. Additional higher risk relative to access to in formation from a given market is linked to foreign investment funds. Fund participation titles are denominated in foreign currencies but may be made available in PLN either hedged or not hedged against underlying currency.

Purchase of a foreign fund investing in securities denominated in different currencies generates a foreign exchange risk resulting from changes in spot and forward market exchange rates and their mutual relationships. FX rate changes might lead to changes in valuation of participation titles. Investing in foreign investment funds is connected with tax costs. Relevant information is available in the fund's prospectuses.

The following risks may be connected with investing in investment funds managed by foreign investment companies:

• Availability of information from a given market,
• Sector risk,
• Credit risk,
• Short-term price volatility risk,
• FX risk,
• Risk of not admitting issuer's securities to regulated market trading,
• Liquidity risk,
• Tax risk,
• Legal risk,
• Settlement risk,
• Market risk,
• Interest rate risk,
• Risk of loss of capital,
• Asset or market concentration risk,
• Level of charges and fees,
• Product complexity.

Risk description is provided in „Description of Risk Related to Financial Instruments and Products for Individuals in Bank Millennium S.A."1), as available in the Bank's outlets and on the Bank Web site www. bankmillennium.pl.

Detailed information on risks and investment strategy can be found in investment fund prospectuses.

Legal disclaimers

Any information contained in this publication is for information only and does not constitute an offer, recommendation or any invitation sent to anyone (or any group of people) to conclude a transaction on financial instruments presented in it. In particular, information contained in this publication does not constitute an offer within the meaning of the Civil Code Act dated 23 April 1964 and is not a service of investment, financial, tax, legal or any other advice.

The terms contained in this publication are for orientation. Any prices and/or specimen transactions are for illustration purposes only and do not constitute an offer of concluding a transaction on such terms or the indication that a transaction on these terms is feasible. Moreover, no calculations or results presented in this publication guarantee future profits. The actual terms of a transaction on financial instruments will be based on market terms established at the moment of its conclusion. Any available price quotations or analyses contained in this publication have been prepared on the basis of assumptions and parameters reflecting the assessment or choice made by the Bank. The Bank shall provide no guarantee of precision, completeness or reasonableness of such quotations or analyses.
The recipient of the information in this publication shall exclusively bear the risk of its using in particular with respect to investment decisions on its basis.

Financial transactions are connected with risk detailed in the „Description of the Risk Connected with Financial Instruments or Products at Bank Millennium S.A.", available from the Bank's outlets and website www.bankmillennium.pl. Anyone who purchases a financial instrument shall accept and bear liability under tax obligations resulting from binding regulations. In view of the above risks and circumstances the Bank's clients should have sufficient knowledge and experience to assess the nature of each financial transaction entertained by them and them associated risk. If in any doubt, clients should use the services of a tax, legal or investment advisor. The Bank shall communicate any additional information which will be validly asked for by the Client to enable him the assessment of the risks and nature of the transaction.

The Client's conclusion of a transaction on financial instruments constitutes grounds for recognition that the Client has familiarised himself with the terms of the transaction and associated risks and accepted them

The dissemination and distribution of certain financial instruments and trading in them may be subject to certain limitations with respect to certain persons and states, in accordance with appropriate legislation. It is up to the client to demonstrate the legal capacity or rights to invest in a given financial instrument. Financial instruments can be offered and traded exclusively in compliance with the appropriate provisions of law.
The information in this publication shall be made available exclusively to its Recipient. The Recipient must not copy, reproduce nor communicate or make it available to third parties in any other way, in full or in part (except to his professional advisors) without the Bank's prior written consent.

Funds invested in the product are not covered by the deposit insurance scheme of the Bank Guarantee Fund.