VIENNA, Austria – June 21, 2018 – Austrian households are among disciplined savers in Europe, but have a low level of assets invested in investment funds according to a comparison performed by BAWAG P.S.K. based on figures provided by Eurostat1). In order to create incentives for customers to achieve greater balance in their investments, BAWAG P.S.K. is offering a new approach: AnlageKombi is a combined investment product that pairs the KapitalSparbuch capital savings account with simultaneous investments in selected securities and offers the best interest rate currently available in Austria for the capital savings account portion.
Markus Gremmel, Head of Division „Marketing and Products“ of BAWAG P.S.K., explained:“We don’t want to wait until the ECB raises interest rates, so we are increasing the guaranteed deposit interest rate for a KapitalSparbuch capital savings account with a six-month commitment period to 3% p.a. when customers open a new securities account and invest in securities. Because customers who would like to have the opportunity of higher returns on their investments should also invest in securities.”
Across Europe, more than € 10,000 billion is being kept in bank accounts or “under the mattress”
According to figures of Eurostat, the financial assets of private households in Europe amount to roughly
€ 33,000 billion. For a wide variety of reasons, roughly 30% of this is held in cash on average (i.e. in savings and salary accounts, restricted forms of savings, or in cash), while only around 7% is invested in investment funds. “Balanced investment is an important issue in many European countries if one wants to be able to realize opportunities to earn higher returns. But the need for a shift is especially pronounced in Austria,” said Gremmel. Around 41% of the total financial assets in Austria – which translates to roughly € 260 billion – is held in the “cash” asset class, while investment funds account for € 55 billion. Thus, Austrians have an imbalanced ratio between cash and investment funds compared to their European peers. The most pronounced one-sided tendency in favor of cash is exhibited by Cyprus (63.5 to 0.4) and Greece (66 to 4), which also has the highest cash ratio in Europe. Private households in Belgium (14%) have the highest proportion of investment funds in the overall mix of financial assets in EU comparison, followed by Spain (13%) and Italy (12%).
AnlageKombi: KapitalSparbuch with 3% interest p.a. for six months and investments in securities
In order to make investing in securities more attractive, BAWAG P.S.K. is offering top conditions for the AnlageKombi starting immediately. Customers who place a high value on savings products in their investments and at the same time want to take advantage of opportunities on the capital markets can now invest in AnlageKombi with a minimum amount of € 5,000. BAWAG P.S.K. is offering 3% interest p.a. for six months for an investment of € 2,500 in a KapitalSparbuch capital savings account, which is currently the best rate for a capital savings account with a six-month commitment period on the Austrian market. An additional € 2,500 must be invested in selected securities of our partner Amundi or FondsSelect funds that are suited to the risk profile of the investor. Investors can open the securities account and provide proof of identity at BAWAG P.S.K.’s branches. During the promotional period, the maximum deposit amount on the KapitalSparbuch capital savings account is € 25,000. This offer is valid for new securities account customers until 31 August 2018.
Customers can invest in “STOXX® Europe Select 50 EUR” certificate, set up by Amundi. It allows investors to profit from the development of the STOXX® Europe Select 50 EUR price index, which is made up of the 50 stocks from the STOXX Europe 600 Index that have the lowest volatility and the highest dividends. The certificate has a term of ten years and the possibility of early redemption after five years depending on the development of the index. The initial value of the index will be calculated based on the average of the closing index values on August 8, 9 and 10, 2018. If the closing value of the index on the reference date of July 19, 2023 is greater than or equal to 120% of the initial value, the capital will be repaid early on August 4, 2023 at a rate of 100% plus 30%. If the index value is less than 120% of the initial value, the product will run for another five years until the redemption date on August 4, 2028. At the end of the term, the capital will be repaid at a rate of 100% plus the average development of the index values over the previous five years in the case of a positive index trend. The subscription period started on June 11, 2018 and runs until 11:30 am on July 27, 2018, subject to early closure. Investments in the certificate can be made in connection with AnlageKombi or on an individual basis.
Risk notice for AnlageKombi
AnlageKombi is a package of multiple products pursuant to the Austrian Cross-Selling Regulation (Querverkaufsverordnung). Your advisor will be happy to provide you with all of the information about the product structure including the risks and expenses.
Information about the deposit protection scheme
BAWAG P.S.K. is a member of Einlagensicherung der Banken und Bankiers Gesellschaft m.b.H. This company serves as a deposit protection agency and guarantees the payment of deposits up to a maximum amount of € 100,000. You can obtain a copy of the applicable law with all of the details at the teller counter. The exceptions from the deposit protection scheme and the investor reimbursement scheme can be found in § 10 (1) 3 and § 47 (2) Austrian Deposit Protection and Investor Reimbursement Act (ESAEG). Please keep in mind that the deposit protection scheme does not apply to securities.
General legal and risk notices
This is a marketing communication of BAWAG P.S.K. pursuant to the Austrian Securities Supervision Act (Wertpapieraufsichtsgesetz; WAG 2018). The contents are solely intended to be used for informational purposes. The circulation of this document or any part of its contents does not constitute a financial analysis as defined by the WAG 2018, an offer, investment advice, an investment recommendation, or a recommendation to buy or sell. The contents of this document are not a substitute for an individual consultation with an investment or tax advisor. Therefore, every recipient of this information and data is required to review and assess this information on an independent basis. Financial instruments are subject to different levels of investment risk depending on their specific structure. BAWAG P.S.K. does not provide tax advice and assumes no liability for potential tax disadvantages in connection with the securities transactions and securities investments of its customers. The taxation of capital gains depends on the investor’s personal situation and may be subject to future changes. Before making an investment decision, you should contact your tax advisor for information about the associated tax consequences and reporting requirements.
Note on prospectuses for investment funds
The customer information documents (key investor information) are available at the offices of the given investment firm and at www.chartmix.at.
Note on the prospectus for the certificate
The public offer for the certificate issued by Amundi as the issuer and Amundi as the capital protection provider shall be made exclusively by way of and on the basis of the base prospectus that was approved by the Autorité des Marchés Financiers (AMF), published, and announced to the Austrian Financial Market Authority on 13 July 2017 (including any subsequent amendments to the base prospectus) and the final terms and conditions for the certificate (referred to collectively as the “Prospectus”), which can be obtained in printed form free of charge at the offices of the issuer during normal business hours and viewed at http://about.amundi.com/Sites/Amundi-Corporate/Pages/Actionnaires/Informations-Financieres/Dette2/Debt. In the event that amendments are made to the Prospectus during the subscription period, investors shall have two days after the publication to withdraw from the contract. The Prospectus can also be obtained from the sales partner BAWAG P.S.K., Georg-Coch-Platz 2, A-1018 Vienna. The only binding information in connection with the offer is that provided in the Prospectus; the information contained in this marketing communication is non-binding. An investment in the certificate involves risks. Before making any investment decision, investors should seek detailed professional advice based on their personal asset and investment situation and pay particular attention to the risk factors outlined in the Prospectus.
Manfred Rapolter (Head of Communications, Spokesperson)
Tel: +43 (0) 5 99 05-31210
Henriette Mußnig (Press Officer)
Tel: +43 (0) 5 99 05-32086