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Arvo Guarantee,
a capital-protected investment basket
An appendix to the product description
of Sampo Investment Insurance
SAMPO LIFE
Value investment with capital protection
The investment opportunities through Sampo Invest- investment basket is protected. The Arvo Guarantee
ment Insurance are becoming more versatile with investment basket utilises modern investment instru-
the new Arvo Guarantee investment basket. Arvo ments and seeks better return opportunities for your
Guarantee offers an opportunity to invest in return- investments through Sampo Investment Insurance by
oriented value investments with capital protection. means of value shares.
It allows participation in the development of value
funds without the risk of losing your capital! Arvo Guarantee investment basket’s
investment activities
The investment basket seeks a good return by
investing in investment objects benefiting from The return on the Arvo Guarantee investment basket
a favourable development of value shares. Arvo mainly depends on the development of the value funds
Guarantee is suitable for a moderate investor who administered by Sampo Fund Management Ltd and the
wants protection for the capital invested and the general interest rate level. Successful asset manage-
return accrued during the investment period. ment companies act as the portfolio managers of the
value funds utilised in the investment basket’s invest-
Value investment is profitable ment activities: Arvo Asset Management Ltd specia-
lising in value investment for European value shares,
Value investment means investing in companies whose
Mandatum Asset Management Ltd in cooperation with
market value is low compared with the value of share-
Arvo Asset Management for East-European and
holders’ equity calculated from their balance sheet.
Russian markets, and Sterling Capital Management
The market value of value companies is based more on
LCC for North-American value shares. Sampo Bank plc
the concrete values of their factors of production and
is responsible for the investment activities of the Arvo
their financial performance in the short term than high
Guarantee investment basket itself.
future growth expectations. Such companies may
include solid companies operating in unfashionable Thus a successful asset manager has been selected
sectors that have been overlooked for some reason. for each area in the Arvo Guarantee investment basket.
For example, Arvo Asset Management Ltd, focusing on
A number of international studies have shown that
European value shares, is a value investment pioneer
value shares have generated a better and more even
in Finland. Focusing solely on value investment creates
return than other shares in the long term. In uncertain
excellent conditions for the success of value funds. One
times in particular, value shares have outperformed
indicator of the success of its investment activities is
other shares. However, equity investments always
that Mika Heikkilä, the investment strategist at Arvo
involve a risk of falling prices, which is why the new
Asset Management, was once again named as the best
capital-protected option offers significant added value
portfolio manager in Finland in 2006.*
for a cautious investor.
Sampo Life has offered its customers capital-protected How is return sought?
solutions for a long time. The new Arvo Guarantee The aim of the Arvo Guarantee investment basket is to
investment basket is particularly designed for cautious achieve the best possible capital-protected return. The
but return-oriented customers. You need not worry or aim is to be achieved by investing as large a portion of
lose your night’s sleep as the capital invested in the the assets as possible in equity-linked objects without
* Comprehensive mutual fund guide 2006 of the securities
magazine Arvopaperi.
SAMPO LIFE
jeopardising capital protection. In order to make the The value of the Sampo Arvo Guarantee investment
investments more efficient and even out the risk, the basket is quoted daily. The value of the investment
assets in the investment basket are effectively distri- basket is based on the current value of the objects
buted over global equity and fixed income markets. In invested in at any given time, such as fund units and
practice, the assets are mainly invested in short-term swaps. A review of the investment basket will be
fixed income funds and a swap agreement benefiting published once a month at Sampo Life’s website at
from the development of value shares. The swap www.henki-sampo.fi
agreement can benefit from a favourable development
of value shares by 0 to 150 per cent. How does capital protection work?
The investment horizon of the Arvo Guarantee invest- Capital protection is granted on the value of an invest-
ment basket is five years. During the investment ment basket unit in the case of investments made in
period, the distribution of the investments will be the investment basket during the sales period between
actively changed according to market conditions and 5 March 2007 and 29 June 2007. Capital protection is
the remaining investment period. valid if the assets are withdrawn between 5 March 2012
and 5 June 2012. The increase and locking of the level
Thus asset management professionals will take care of capital protection for the investment basket takes
of your investment throughout changes in market place stepwise, always when the value of the invest-
conditions. Potential profit locking and the approaching ment basket increases by 10 percentage points from
end of the investment period will reduce the amount of the level of capital protection confirmed during the
equity-linked investments in the investment basket. sales period. In this way, accrued return confirmed as
After 5 March 2012 the assets in the investment basket the guaranteed value remains in the investment basket
will be invested in money market investments and until the end of the investment period. The level of
short-term fixed-income funds in their entirety. capital protection cannot decrease. Capital protection
will only be valid during the withdrawal period between
5 March 2012 and 6 June 2012. In addition, the costs of
Example of how capital protection works
Sampo Investment Insurance will be deducted from the
value of the investment. You should familiarise yourself
with the costs of Sampo Investment Insurance in the
separate list of service charges.
Withdrawal of funds
The capital protection granted on the value of the unit
of the Sampo Arvo Guarantee investment basket can
be utilised when withdrawing funds as of 5 March 2012.
Value development of the Level of capital protection Funds invested in the investment basket can be with-
investment basket
drawn until 5 June 2012.
The highest value of • The level of capital protection The confirmed capital
the sales period is will be increased at 10 protection level is valid Funds invested in the Sampo Arvo Guarantee invest-
confirmed as the initial percentage point intervals during the withdrawal
capital protection level once the value of the invest- period between 5 March ment basket may be withdrawn or transferred to
on 2 July 2007. ment basket increases by the 2012 and 5 June 2012.
same amount from the original another investment object earlier at the value of the
level of capital protection.
redemption date. In this case, capital protection is not
• The level of capital protection
cannot decrease. valid.
SAMPO LIFE
It is worthwhile taking out a Sampo Investment
Insurance policy for as long a term as possible. A
long-term insurance policy allows transferring funds
to other investment objects of Sampo Investment
Insurance without costs at the end of the investment
period of the Sampo Arvo Guarantee investment
basket. In this case, the other benefits of Sampo
Investment Insurance remain unchanged.
Sampo Arvo Guarantee investment basket in a nutshell
• Investment basket name: Arvo Guarantee • Adjustment of the level of capital protection:
• Minimum subscription: EUR 2,000 The level of capital protection is to be increased
• Sales period: From 5 March 2007 to 29 June 2007 at intervals of 10 percentage points once the
• Investment basket portfolio manager: value of the investment basket increases that
Sampo Bank plc much from the original level of capital
• Start date of investment operations: protection.
5 March 2007 • The operations of the investment basket will
• Investment objects include fixed-income funds cease: 5 June 2012
and a swap agreement benefiting from a • Grantor of capital protection: Sampo Bank plc
favourable development of value shares. • The investment basket is subject to an annual
• Investment basket unit value quotation: Daily management fee of: 0.9 %
• Capital protection is at least 100 %. • The management fees charged by the funds used
• Capital protection: Unit value according to as investment objects of the investment basket
the highest confirmed guarantee level for will be charged to the funds.
investments made between 5 March 2007 and
29 June 2007 and withdrawn between 5 March
2012 and 5 June 2012.
SAMPO LIFE
You can utilise the best expertise in the sector in Asset Management Ltd and Sterling Capital Mana-
investment and insurance saving through Sampo gement LCC are not responsible if the value of the
Investment Insurance and the Arvo Guarantee invest- investment basket decreases.
ment basket.
This brochure is not an exhaustive description of the
Capital protection is given on the value of the Arvo Arvo Guarantee investment basket. The investment
Guarantee investment basket unit, not on the basket regulations are available from Sampo Bank’s
insurance. Capital protection for the value of the branch offices and at www.henki-sampo.fi. Additional
investment basket unit is provided by Sampo Bank plc. information is also available from Sampo Life’s and
Capital protection is not granted by Sampo Life Kaleva’s telephone service +358 200 31100 (local
Insurance Company Limited, Arvo Asset Management network fee/mobile network fee) on weekdays 8 am
Ltd, Mandatum Asset Management Ltd or Sterling to 5 pm.
Capital Management LCC, nor are they responsible for
Additional information on Sampo Investment Insurance
capital protection. The conditions for receiving capital
can be found in the product description, terms and
protection for the investment basket unit are described
conditions, and the price list, which are available from
on the previous double page and the investment basket
regulations. Sampo Life, Sampo Bank, Sampo Fund Sampo Bank’s branch offices and at www.henki-sampo.fi.
Management, Arvo Asset Management Ltd, Mandatum
The information on taxation is based on legislation
in force on 5 March 2007. Sampo Life is not
responsible for any changes in taxation.
Sampo Life Insurance Company Limited
Registered Domicile and Address:
Bulevardi 56, FI-00120 Helsinki, Finland.
Business ID 0641130-2
www.henki-sampo.fi 3/2007
SAMPO LIFE
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