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47
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47 (142) 2021
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Looking beyond Brexit - inward investment to Poland

No interest on company term deposits – what’s the answer?

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Currently, banks generally refuse to make term deposits for companies, or else the rate of interest quoted is slightly above zero. To make matters worse, banks have introduced fees for keeping money in current bank accounts. As a result, companies actually pay extra for the balances in their accounts. It does not seem that this situation is going to change soon. Interest rates, both in Poland and globally, are expected to remain close to zero for a long time. The banking sector is facing record-high over-liquidity and there is little hope for immediate abolition of the banking tax. It is simply not profitable for the banks to maintain balances even with zero interest rate. Where should companies keep their financial surplus in such circumstances?

The offer of Aviva Investors Poland TFI S.A. has been designed to meet the expectations of the market. “While banks are looking for savings, Aviva has prepared a dedicated solution for corporate clients and institutional investors, namely, the Aviva Investors SFIO Stable Income fund (Aviva Investors SFIO Stabilnego Dochodu)” says Grzegorz Latała, investment director at Aviva Investors Poland TFI S.A. “For business entities, the fund has an offer of profitable investment of the company's financial surplus with the minimum management fees. Thanks to attractive and stable rates of return (one-year results: 1.55% in 2020, 2.18% in 2019, 2.06% in 2018) it is an attractive market offer, worth considering by companies with cash surpluses.”

What distinguishes the fund and why is it the go-to fund for these times of zero interest rates?

•    the management fee is only 0.25% and no other costs are charged
•    it invests in bonds of issuers with high investment grade ratings
•    it is a highly liquid fund
•    it offers good return rates in the short and long term
•    it is managed by experienced investment advisors with CFA qualification

More on the fund at https://www.aviva.pl/inwestycje/sfio-stabilnego-dochodu/

[The Investment Fund Company (TFI) does not guarantee that the Fund will achieve a given result. Participants of the Fund should take into account the possibility of obtaining negative rates of return if adverse market conditions or factors affecting the issuers of securities in which the Fund's investments are made emerge. Information about the Fund, risk, the table of handling fees, as well as other costs and charges, can be found in the Key Investor Information, the Prospectus, and the AIF Client Information available from distributors, in TFI, and at www.aviva.pl. The information is for advertising purposes only and does not constitute investment advice or recommendation regarding financial instruments or their issuers.]

 

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