Private Portfolio

More about the advantages

An easy way to invest – choose a strategy according to your objectives and risk tolerance

You choose the investment strategy according to your objectives and your risk tolerance.
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Actively managed investment strategies

You choose a strategy according to your needs and your risk tolerance; we choose the substance of the strategy and manage it actively.
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Flexibility in investing money

You can invest money on monthly basis subject to the contract by direct debit or at the time and in the amount at your option. Similarly, you can take the money into use at any time.
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Convenient tracking of investments in the Internet Bank

Comprehensive information about the contract is available in the Internet Bank, where the owner of the contract can tract the rate of return based on the contract, cash flow information, transactions in units, and make amendments in the contract.
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Good to know

Exchange of assets inside the Private Portfolio is exempt from income tax. The share of profits is subject to income tax liability only if the amount withdrawn from the contract is bigger than the one paid into it.

Succession

If a beneficiary is determined in the Private Portfolio contract, the contract is not included in the estate. In case a Private Portfolio owner dies, the total value of the investments shall be paid to the person previously determined in the contract. The insurance shall add two more percent to the value of the investments.

• What is the difference between Fund Plans and Private Portfolios?

  The Private Portfolio owner may take the easy option when making the investments - the daily investment decisions are made for him by the portfolio managers after the investor has chosen the strategy. The Private Portfolio owners must get involved only in case the chosen strategy no longer suits their objectives.
  Fund plans on the other hand are suitable for well-informed investors who enjoy the opportunity to compile their investment portfolio themselves and manage it actively. Even in case the standard portfolio based on the strategy and recommended by Swedbank is chosen, the shares of funds must be rebalanced or even the funds must be changed from time to time as appropriate in order to make the structure of the portfolio comply with the strategy chosen.

• Why does the Private Portfolio have five strategies?

  The Private Portfolio has five strategies in order to offer the opportunity to invest money to customers with different risk tolerance and objectives. By choosing the strategy you determine the principal investment rules: in which assets and instruments your money is invested, which risks are taken, and which could be the recommended duration of the investment.

• Is it possible for me to change the strategy and what are the costs associated with this?

  You can change the strategy at any moment. Should your needs change, you can always exchange the strategy chosen for another one. No fees or income tax liability will arise from this in case of the Private Portfolio.

• How often are the underlying assets of the strategies examined, how often are they changed and what is the basis for this?

  Changes in the strategies are made according to the need, e.g., if the situation on the financial markets requires a change – either balancing of the investments or replacement of certain investments. The strategies are managed as agreed in the short prospectus and according to the strategic distribution of the assets. The choice of strategies is based on quantitative analysis, measuring the historical rate of return, risk level, management and investment process.

• How is it possible to terminate the Private Portfolio contract and what are the costs associated with the termination of the contract?

  The Private Portfolio contract can be terminated at a bank branch or using the Internet Bank. To terminate the contract using the Internet Bank, you should first call the Investment Helpline, phone 613 1606, or contact them by the e-mail address investeerimistugi@swedbank.ee. A service charge of 0.5 % of the disbursement is applied upon termination of the contract based on the price list, if the termination application is submitted when less than five years have expired from the entry into the contract. When five years have already expired, no service fee shall apply upon termination of the contract.

• What should I do when I no longer want to make regular investments in the Private Portfolio?

  A regular payment schedule can be terminated using the Internet, when you access your Private Portfolio contract in the Internet Bank. Please select from the menu: Property and life insurance -> My contracts -> Private Portfolio -> Changes-> Change of the method of payment.

• Is it also possible to get a life insurance with the Private Portfolio?

  The Private Portfolio is a unit-linked life insurance contract and in case the Private Portfolio owner dies, the disbursement shall be really made to the beneficiary indicated in the contract (unlike e.g. the investments held in the securities account). The amount to be disbursed is the value of the portfolio, to which the insurer adds 2 % (based on the law the minimum amount disbursed in case of death is 102 % of the value of the accumulation reserve).
  As the objective of the Private Portfolio is still to invest, it is impossible to agree on a higher insurance cover in this contract. If you wish to give your family confidence for a bigger amount than that accumulated in your Private Portfolio, we recommend finding of a suitable solution from among the insurance products offered by Swedbank. Read more about these options in the Internet Bank under „Property and life insurance”.

Private Portfolio is a unit-linked life insurance contract. Prior to entry into the contract, please examine the terms and conditions of the contract, the price list and the short prospectus at the homepage www.swedbank.ee. The list of investment related risks is specified in the short prospectus. The service provider is Swedbank Life Insurance SE.

Monthly overviews of strategies

• Capital preservation strategy
• Real value strategy
• Balanced strategy
• Growth strategy
• Aggressive growth strategy