Structured products

Product description

The world within reach

It is a type of investment, which is an alternative to bank term deposits or to mutual funds. This unique investment product is a bridge between deposits and mutual funds, for it combines guarantee of invested principal (characteristic of term deposits) with the possibility of earning an above-average yield (a feature of mutual funds).

Structured products permit investing on almost all financial markets, with full or partial guarantee on principal. In search of optimum solutions to attain higher rates of return and principal guarantee, the bank builds products, which permit Customers to participate both in growths as well as falls on any market worldwide.

The products, structured every month by the Bank, provide access to instruments, markets and strategies, which until recently were beyond easy reach, or reaching which required extensive knowledge and investment experience.

Structured products constitute a broad and diversified array of innovative, built-to-order financial products, which:

• pre-defined principal guarantee,
• pre-determined payout formula,
• payout at least once in the future.

As part of the Prestige offer we regularly propose structured products, usually in the form of bonds or bank securities (soon), because they provide the greatest flexibility and ensure highest liquidity. The yield on these products makes them a valuable asset in an investment portfolio.

Benefits

World capital and monetary markets

Investment and especially structured products are among the newest and most interesting banking products now available on the Polish financial market.

They are an example of effectively combining a "conservative" bank deposit with investments in sophisticated financial instruments.

Thanks to the security of the third party funds by virtue of guaranteeing payment of the committed capital and the opportunity of above-average gains, structured products are an attractive alternative to traditional term deposits.

Taking advantage of almost unlimited possibilities of many markets, structured products are an excellent instrument to diversify the portfolio.

These products permit investing in all sectors and remote placed around the world - on equity, bonds, raw material and commodity markets, in mutual and hedging funds.

Minimum investment amount from 25.000 PLN. Access conditions are being formulated separately for every structured product. This information with descriptions of a risk associated with a given product, are in a product presentation and emission documents for the product.

Risks

Structured products with full or partial protection of principal include investment products having a form of bonds, banking securities or insurance policies, based on financial or commodity market indicators such as currency exchange rates, prices of shares, stock exchange index values, commodity prices or baskets including these variables having impact upon final interest rates of bonds, banking securities' settlement amounts or amount to be disbursed under the insurance policy. Structured products are instruments covered by partial or complete protection of on the investment maturity date. Structured products with partial principal amount guarantee provide protection of less than 100% of capital. In such cases investors must take account of possible loss of principal but, as a reward, he/she can expect higher share in potential yields. 

For structured products, full or partial protection of capital is effective solely on the investment maturity/redemption date. If structured products are sold on secondary market before maturity/redemption date, full or partial protection of capital will no longer be effective.

Products are offered under subscription. Suggested investment period is 2-5 years.

The following risks are involved in investments in structured products:

• Availability of information from a given market
• Credit risk,
• FX risk,
• Liquidity risk,
• Tax risk,
• Legal risk,
• Market risk,
• Interest rate risk,
• Risk of loss of capital,
• 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.

Emissions

Legal disclaimers

This publication contains the description of structured products and was created for marketing purposes. If any structured products are issued based on the concept presented in this publication, the terms of the issue will be presented in the prospectus or any other information document pertaining to structured bonds, which can be obtained free of charge from Bank Millennium S.A.

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.

This publication contains the position of Bank Millennium S.A. („Bank") formulated on the basis of its own assessment of facts important to the Bank and suitable provisions of law. The Bank ensures that it has exercised due diligence for the information contained in this publication to be fair and based on authoritative sources, however it cannot guarantee the fairness, completeness or up-to-dateness of the information obtained from sources outside the Bank. Additionally, the Bank states that the information and analyses contained in the publication were based on the information coming from public sources which could be independently verified by the Bank, and may change from time to time. The Bank shall be in no way liable for the financial consequences of the Client's transactions in financial instruments described in this publication. However, the Bank reserves the possibility of changes both in the form and content of this publication, at any time and without prior notice.

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 for individuals 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.

Money invested in Bank Securities is guaranteed by BFG in keeping with the Act on Bank Guarantee Fund. 100% of the principal invested in the Bank is protected, with the total amount of the principal in PLN not exceeding EUR 100,000, regardless of the number of accounts held with the Bank/number of claims due against the Bank. Deposits/claims of private persons are protected in keeping with art. 2 item 1) of the Act.