Investment instruments

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Taking the advantage of market opportunities the Bank designs investments solutions aimed at current income growth, preservation and appreciation of invested capital. The following investment instruments are applied:

Money Market Instruments

ARMSWISSBANK enables the clients to allocate their free resources for a short term period in a range of money market instruments, which will make their cash management more flexible and advantageous. We offer our clients the following money market instruments:

• Operations with government securities (buying and selling, forward contracts)
• Forex operations (buying and selling, currency swaps, forward contracts))
• Repurchase agreements
• Operations with gold bullions

Stocks

Stock signifies an investor’s right of ownership in a corporation and grants the stockholder a number of privileges, prerogatives and authorities. ARMSWISSBANK offers stocks to the customers who anticipatehigh revenues, while willing to accept equivalent level of risk. Stockholders may anticipate solid returns from fluctuations of stock prices under favorable conditions of the market.

Bonds

Bonds provide a certain return on invested capital at a future fixed date, and exhibit less volatility than stocks. ARMSWISSBANK offers bonds to the investors seeking greater capital security and assured income. Unlike stockholders whose returns are uncertain, bondholdershave the advantage of enjoying more predictable returns.

Investment funds Shares

Investment funds attract funds by issuing shares and invest them in other instruments of the market - by managing the collect iveinvestments of the funds’ shareholders by a professional fund manager. By investing in investment funds’ shares, the investor maintains high level of diversification of investment instruments and portfolio management, which is not available for an individual investor, as it requires special knowledge, online professional information and necessity of performing permanent technical and fundamental analyses of the securities market. Unlike stocks and bonds, investment funds’shares provide high level of return within moderate risk level.

Futures Contracts

Futures contract is an agreement on buying or selling of the underlying asset at a pre-determined price in the future. Futures contract is a standardized exchange instrument traded on agricultural products, energy, metals, foreign exchange, stock indices, interest rates and other instruments which may be considered as underlying assets of that contract. These contracts do not assume physical delivery of the underlying asset. The difference between the market price of the underlying asset of the futures contract in the physical (real) market on expiry date of the futures contract or on a date when an offset deal is concluded and the predetermined price will be paid tothe succeeded party. This instrument will give investors an opportunity to hedge from the price fluctuation risks as well as it may assist the exporters/importers and also other financial organizations in managing their financial flows more effectively.

Currency option

Currency option is an agreement between two parties which conveys the buyer of the option a right (not an obligation) to purchase from the seller the underlying currency at a predetermined price and date in the future against a premium. This instrument will give investors an opportunity to hedge against the price fluctuation risks and may assist the exporters/importers and other financial organizations in managing their financial flows more effectively.