Each rationally thinking person looks for ways to get the most effective return on his money. For many it is then important to know in advance how the investment may grow and, most of all, what is its yield potential and the market risk he takes. If these parameters are also important to you then you might be interested in investing in Prémiový dluhopis DEMOGRAPHY SELECT 4.

The four-year PD DEMOGRAPHY SELECT 4 is designed for clients who do not require regular disbursements of the yield, but prefer growth of their investment depending on the trend of index composed from more stock titles.

PD DEMOGRAPHY SELECT 4 offers an attractive yield potential of up to 40% in four years, whereas at the maturity date it guarantees a return of 100% of its nominal value (see Note).

One of the fundamental factors that affect the global economy is demographic development. The key demographic changes are lower birth rate, longer life expectancy, people moving to bigger cities, as well as the rise of the living standard of a constantly greater number of people in the world. Demographic changes are projected into consumer behaviour, development of new technologies, they affect demands on development in the field of pharmacy, environmental protection and changes in production processes. It can be said that they are changing the outlook on the entire world and have a fundamental impact on corporate management in many branches and sectors. The proper identification of specific companies which could profit from demographic changes in the next few years is really crucial.

How does the Prémiový dluhopis DEMOGRAPHY SELECT 4 work?

• The yield of the four-year PD DEMOGRAPHY SELECT 4 depends on the trend of global iSTOXX Global Demography Select 50 index.
• The initial value of the underlying asset shall be determined on 20 February 2020.
• The underlying asset is observed annually. Each year its value is recorded on the observation day.
• The average value of the underlying asset is calculated from these 4 values acquired during observation. This is then compared to its initial value.
• The total amount of the payout at maturity is calculated: 100% of the nominal value of PD DEMOGRAPHY SELECT 4 + participation 125% × (average value of 4 observations of the underlying asset/initial value – 1).
• Even with a greater fall in the underlying asset at least 100% of the PD DEMOGRAPHY SELECT 4 nominal value (see Note) is always paid out at maturity thanks to the guarantee.
• For the duration of PD DEMOGRAPHY SELECT 4 its price may fall even below 100% of its nominal value with regard to the trend in the underlying asset and market conditions.
• The maximum amount of the premium is fixed at 40% of the Premium Bond nominal value for the duration of PD DEMOGRAPHY SELECT 4, i.e. for 4 years.
• Regular annual observation and the averaging of gained index values partly protect the investor against any sharp fall of the prices of the monitored underlying asset just before maturity. The total yield depends not only on the closing value of the observed underlying asset, but also on the continuous underlying asset value for the entire duration of PD DEMOGRAPHY SELECT 4. However, regular observation can also reduce the resulting yield (for example, if the underlying asset increases just before maturity).

You will find examples of scenarios at maturity in the leaflet.

• Maturity of the Premium Bond is 4 March 2024
• Česká spořitelna pays out the yield and the nominal value
• Liquidity: daily according to current market prices in the Exchange Rate List of Česká spořitelna, a.s.
• It takes three working days to settle the buying and selling of the Premium Bond