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Financial experts proposed a new savings strategy with investor protection

Against the background of falling returns on deposits in foreign currency and turbulence in the financial markets SB JSC Sberbank together with LIC Nomad Life launched a new financial product ZOLOTO NOMADOV Invest to diversify the bank's client portfolio. Gulia Yesbossynova, Director of Premium Banking, spoke about the new savings strategy and cooperation with Nomad Life.
Financial experts proposed a new savings strategy with investor protection

- You have been working with Nomad Life for several years. Why did you choose this life insurance company?

- Sberbank is open for cooperation, but we are carefully studying potential partners. For many years of work, Nomad Life has established itself not only as one of the leaders of the Kazakhstani life insurance market but also as an innovative company constantly working on service improvement and new product development. The structure's reliability is evidenced by a long-term rating of BB (stable outlook) by the international rating agency S&P Global Ratings. All this proves that Nomad Life successfully combines a creative approach in work and sustainability in business development.

Our bank is interested in the material well-being of clients, and therefore we are ready to offer our clients a highly profitable dollar product ZOLOTO NOMADOV Invest.

In 2018, Sberbank started to cooperate with the life insurance company Nomad Life under the ZOLOTO NOMADOV endowment scheme. This product allows you not only to insure the life and health of your loved ones and yourself, but also save and increase dollar savings at an effective rate of up to 3.41% per annum with investing period of 2 to 15 years. Thus, a unique product that combines the advantages of a life insurance policy and an investment instrument is presented to the market.

- The sales were good but you decided to offer something new to your customers.

- That’s right. The market does not stand still, and this year the authorized body has regulated the rules for investment insurance. Nomad Life was the first to offer the market a new product ZOLOTO NOMADOV Invest. ZOLOTO NOMADOV is a classic savings policy that allows its owner to achieve a certain financial goal. In the event of an unfavorable life situation, the client receives full payout. Investment insurance ZOLOTO NOMADOV Invest has the same scheme, but the client additionally gets the opportunity to independently choose the investment strategy.

- How is such a high dollar profit accumulated?

- In the first case, money is invested in fixed income instruments (usually bonds). Therefore, the income from endowment insurance is usually predictable, but not very high. In the second case, the insurer offers various lines of investment directions. Here, investments in stocks prevail, since historically, returns on stocks significantly exceed returns on other asset classes despite high volatility.

The Nomad Life basket includes leading companies from different sectors of the global economy, from the US blue chips to the Chinese stock market.

Nomad Life is offering seven investment strategies for its clients today: “500 largest US companies”, “US blue chips”, “China stock market”, “High technologies”, “Healthcare”, “Energy”, “Gold mining”. The historical profitability of stock indices for investment periods from 3 to 15 years was studied in each of these areas. All seven investment strategies are diversified both in terms of territory and industry.

ZOLOTO NOMADOV Invest is suitable for people who want to try themselves as investors but are not ready to bear the risks associated with direct investments in securities and other assets.

I would like to note that if you independently invest in the stock market and be a speculative investor, you have to pay many different contributions from the income. Investment life insurance is encouraged by the government; therefore, the investment income received is not taxed.

Thus, combining high investment returns and reliability of deposits, ZOLOTO NOMADOV Invest has the right to become one of the most popular financial products in Kazakhstan.

- Is there an investment risk?

- There are always risks in the investment market, but ZOLOTO NOMADOV Invest is passive investing, which is buying and holding investments for a long period of time and not frequent transactions. It is a strategy for long term investors because it benefits from the typical upward trend of the entire market over the years.

Please note that according to the SPIVA Scorecard from the S&P Dow Jones Indices, the profitability of 80.6% of active managers for five years (2014-2019) has been lower than the S&P 500. That is, passive investing and not skipping from one security to another, brings 13.12% on average.

- How can your clients or clients of Nomad Life track their profitability or be sure that funds are invested in medical, and not in mining companies, for example?

- In fact, these are two questions. First, you can rack the investment result 24/7 in your personal account. Beside, throughout the entire term of the agreement, you can redistribute funds. If required, you can replenish or partially withdraw the amount of your savings.

Second, the Financial Supervision Agency, by allowing the insurer to offer investment insurance to clients, has put forward a number of requirements for LICs. These requirements are designed to prevent clients from investing in speculative securities. Thus, the assets of customers of ZOLOTO NOMADOV Invest are kept and accounted for separately from the assets of the insurance company. This system guarantees a complete safety of funds for people. Besides, all operations of the owners of ZOLOTO NOMADOV Invest policies are monitored by a custodian bank, which has the right to block a shady transaction. Sberbank acts as a custodian bank, which is why we offer this product to our clients.

The contributions under investment insurance policies in our country are divided into insurance and investment parts. The investment part is usually more risky while the insurance part is of a stabilizing nature.

Thus, the insurance company is monitored by the regulator, custodian bank, clients themselves and rating agencies. This multi-level control system ensures the transparency of the insurance company.

- What is the investment period and are there any requirements for the minimum investment amount?

- From three years, the minimum amount is from $500. But let me remind once again about the basic rules: the more money a person invests, the more he can earn. A stable return on investment is ensured by a longer investment period.

For further details see the website invest.sberzoloto.kz or call 3260.

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