The start of the economic year will be a little worse than the previous year which, in terms of the Polish economy, means that it will still be very good.
The start of the economic year will be a little worse than the previous year which, in terms of the Polish economy, means that it will still be very good. The lack of stability of financial markets could persuade customers looking for profit greater than that offered by banks, to invest in structured products.
Is the Polish investor a victim of globalization?
Classical economic theory says that serious drops in the stock market normally outstrip the weakening or even recession of the real economy. The stock market therefore acts as a barometer. Meanwhile, events of the past few months on many stock markets, including the Warsaw stock market, have been following a completely different path. Problems with the American economy and the emerging crisis on the risky mortgage loans market have suddenly affected other markets all over the world. Shares have got cheaper both in countries where the economic situation is excellent and in countries where there is real cause for concern about the state of the economy.
"Poland finds itself in a period of dynamic economic growth. In spite of a certain weakening of the growth rate recently and the rise in inflation, this year will also be very good - we predict that GDP will increase by around 5%. There is no other large economy in the European Union that can boast this kind of growth rate. We can therefore say that Polish investors have become the "victims" of the globalization of financial markets. This is a paradox which should be taken into consideration when predicting the behaviour of investors and product strategies of financial institutions," highlights Marek Przybylski, the president of CU Investment Management and CU TFI.
The situation on the Polish investment market indicates that some of the people frightened by the drops in the stock market have decided to wait for the end of this difficult period, depositing their money into bank accounts or transferring it to safe funds.
"However, it is unlikely that the more active investors will settle for a profit of 6% per year. We are therefore offering these customers structured products with a guaranteed return on their investment in the event of a 'worst case scenario', at the same time allowing them to earn money in more risky markets," says Marek Przybylski.
CU Guarantee Global Investments II is the answer to the Polish investor's dilemma
From 11 February until 7 March 2008 customers will be able to invest money in the following structured product - CU Guarantee Global Investments II. Since 2007 Commercial Union has offered a range of structured products under the name CU Guarantee in the form of individual life and endowment insurance. These products give customers a guaranteed return on their investment (minus a 1% fee), at the same time allowing them to make a stable profit irrespective of market trends. The product currently being sold is the third in the CU Guarantee series.
"It enables customers to earn money on international markets (shares, real estate, goods and currency), while maintaining a wide geographical diversity. Its strategy, based on the model which was awarded a Nobel Prize, allows the customer to earn profit on both rising and falling markets," highlights Marek Przybylski.
The agreement is for four years. The minimum investment is 10 thousand zlotys. Payments at the end of this period are not subject to capital gains tax (the so-called "Belka tax"). The amount to be paid is connected to the BNP Paribas Millennium 10 Europe ER index.
The product CU Guarantee Global Investments is offered by 3 thousand CU insurance agents as well as in four "Good Investment Centres" in Warsaw. These are located in: the Babka Tower building not far from Ronda Radosława (80 al Jana Pawła II), in Blue City (179 Al Jerozolimskie), by Kabaty metro station (24 al KEN) and at the headquarters of Commercial Union (70 ul Prosta). From the beginning of February CU will be running an outdoor campaign in Warsaw under the name "The Golden Investment Wave", aimed at promoting the Commercial Union Good Investment Centres. In these centres customers can get help from investment product advisers, who will prepare a financial analysis based on "Your Investment Profile" and a special pension calculator, among other things.
A lower management fee
From 21 January of this year CU TFI has lowered its management fee to 1% for the sub-fund CU Deposit Plus which is part of the Commercial Union FIO (Open Investment Fund) umbrella fund. Furthermore, there is no handling fee for this sub-fund when you pay money in. The management fee for the Money Fund offered by CU Life has also been set at 1% of average annual assets.
"We would like to use this to make our offer even more attractive during these periods of great uncertainty on the financial markets. By transferring money from more risky funds to money market funds within an "umbrella" fund or unit-linked insurance plan, the customer does not pay capital gains tax and potential tax losses resulting from periods of economic slump can be compensated for by future profit. If the customer completely withdraws his money from these products, he will lose these benefits for good," stresses Marek Przybylski.
The "Rich man, poor man" lottery
An additional incentive to invest in Commercial Union investment products (investment funds, Bonus VIP investment insurance and CU Guarantee Global Investments II) is the chance to win one of 12 holidays for two to: Argentina, South Africa, China or Finland. In order to take part you need to have paid at least 10 thousand zlotys into one of these products within the period from 4 February to 14 April 2008 and to have completed a coupon available from Commercial Union agents, the Good Investment Centres and on the CU website. Details of the rules of the lottery, including the regulations on making payments as well as recommendations, can be found in the terms and conditions.
-ends-
Information:
Bohdan Białorucki
Telephone: (22) 557 43 41
E-mail: mailto:public_relations@cu.com.pl
Grzegorz Mathea
Telephone: (22) 557 43 70
E-mail: grzegorz_mathea@cu.com.pl
Notes to editors:
The Commercial Union Poland group is part of the international Aviva group, the world's fifth and Great Britain's number one insurance organisation in terms of revenue. The Aviva group operates in 30 countries. It occupies a strong position in Great Britain, Ireland, France, Holland, Spain, Italy, Poland, the USA, Canada and Australia. It services over 40 million customers around the world, has an annual revenue of around £41.5 billion and manages assets to the value of over 364 billion pounds. For additional information see: www.aviva.com/