Tradition at its Best
P R O D U C T S A N D SE R V I C E S
TABLE OF CONTENTS
AUSTRIA AS THE IDEAL BANKING LOCATION................4
SAFETY & STABILITY.............................................................7
AGGREGATED ACCOUNT REPORTING........................... 13
STRUCTURED INVESTMENT PRODUCTS....................... 16
ABSOLUTE RETURN PRODUCTS.......................................20
GENERAL FINANCIAL RESEARCH / INFORMATION.....23
TRUSTS AND OTHER VEHICLES - WEALTH
MEDICI HERITAGE FOUNDATION...................................25
Sometimes you might want to talk to a financial institution …
where the quality of its banking services is undisputable
where good and stable personal service is taken for granted
where its shareholders provide for the guarantee of safety for your money
but on top of these almost ordinary trademarks of high-level finance……
can deliver something of the hard to describe “Extra” or “Special”
which can bring you forward...
solve you a problem that might have financial relevance in the future
provide for reliable and a trustworthy business network in other regions of the world to
support your local ventures
or simply has time reserved for discussing and commenting on your plans – and
probably assist you later in implementing them.
What makes us tick in your favour…
is the quality of our reputation as good bankers and service providers
and the power of our network as a platform for your ventures.
What you can expect are good listeners that take the liberty to frankly tell you if something is beyond our means.
AUSTRIA AS THE IDEAL BANKING LOCATION
The Financial Times has noted, “Ideally, (private-
banking) locations should add favourable tax regimes and
high quality financial services to inherent stability. Even
better are those that are appealing destinations in their
own right, turning an annual visit to the bank into as much
a pleasure as a task.” (Financial Times Report, Private
Banking 2005) Vienna certainly fits the bill on all these
Key High Net-Worth Individual markets are closely
tied to Austria thanks to its EU membership,
proximity to Eastern Europe and long-time position
Momentous changes to Austria’s advantage in the
web of global regulations affecting bank secrecy
A favourable tax code for investors
Austria’s economic and political stability
The emergence of the Euro as a major alternative
currency of reference to the USD
The nation’s quality of life, affordability and other
benefits for foreign residents; and
The Austrian capital’s superb infrastructure and
Austria’ Location, Neutrality and Historic
Vienna’s location and economic ties leave Austria’s capital
well-positioned to serve many of the largest and fastest-
growing regions for HNWIs.
Austria’s economy is one of the most internationally
integrated in the world, ranking ninth in the
Globalization Index 2005.
Net direct foreign investment in Austria rose from
around EUR 1.4 billion in 1995 to more than EUR
7.2 billion in 2005
Austria is a member both of the European Union and the
European Monetary Union (Euro Zone), allowing it to
capitalize on the emergence of the euro as a currency of
Austria’s Competitive Advantage in
Austria is among the leading nations of the world in its
protection of confidential information of banking
customers. Banking secrecy is regulated not only through
the Austrian Banking Act (§38 BWG) but is anchored in
BANK MEDICI is dedicated to providing the full spectrum
of financial services to its client base. All standard banking
services, such as saving accounts and deposits, are
provided through the synergy with Bank Austria
Creditanstalt, Austria’s largest Bank and Member of the
UniCredit Group. As the depository institution, it further
endows BANK MEDICI customers with an outstanding
degree of safety and security.
Your personal contact will be Mr. Stephan Tiefenwieser,
who is Director of BANK MEDICI’s Private Banking
Division. Together with his team, he covers not only all
Parts of Private Banking, but also Investment Banking
deals. Medici Bankiers are available for their clients 24
hours a day, 7 days a week.
While products and services as well as product
development activities are offered by BANK MEDICI, all
transactions, operations and back office processes are
carried out through the proven and reliable systems of
Bank Austria Creditanstalt.
BANK MEDICI will cover the complete
BANK MEDICI harnesses Bank Austria
Creditanstalt AG’s proprietary execution and
information systems, which meet the special demands of
private banking as well as regulatory requirements.
SAFETY & STABILITY
BANK MEDICI's location and partnership with Bank
Austria Creditanstalt have been carefully selected to
supply customers with general banking services providing
a maximum of safety and security.
Bank Austria Creditanstalt, BANK MEDICI's institutional
shareholder, is Austria's largest bank and part of the
UniCredit Group. As BANK MEDICI's depository bank, it
provides the financial security for client assets.
Ratings of Bank Austria Creditanstalt AG
In 2005, Bank Austria Creditanstalt became member of
the Italian UniCredit Group, which is a leading banking
group in key markets such as Germany, Austria and Italy.
More than 35 million clients served through over
7,000 branches in 20 countries
More than Euro 822 billion in total assets (as of
September 30, 2006)
UniCredit is also outright leader in Central & Eastern
Europe, an area featuring faster rates of economic growth
than established Western European counties.
UniCredit Market Share in CEE Countries
1) Grandfathered debt remains rated Aa2, subordinated debt rating remains Aa3!
2) Grandfathered debt remains rated AA+, subordinated debt rating remains AA+!
as of 12 January 2007
1. Account Holder
Account holders may be individuals as well as companies.
Possibility to use one account number for several purposes:
3. Traditional Accounts
Maestro Card (worldwide cash withdrawal service )
Online transactions: information and electronic
1. Online Banking
Banking business on-line with 24-hours access
Information and electronic payment orders
2. Online Trading
Security orders are accepted every Austrian working day
from 8. a.m. – 8.p.m.
The OnlineTrader offers inter alia the following services:
Access your securities account via OnlineB@nking,
TelefonB@nking, WAP-B@nking, SMS-B@nking
View the aggregate market value of your securities
Buy and sell stocks listed on the Stock Exchanges of
Vienna and Germany, USA, Netherlands, France,
Switzerland, U.K. among others.
Austrian mutual funds as well as more than 4000
selected foreign mutual funds approved for sale in
Order voting cards for the annual general meeting
If necessary, securities orders can be cancelled via
3. Web Portfolio
Through the web portfolio service, BANK MEDICI will be
able to offer its clients the option of reviewing the status,
trends and structure of their actively managed assets. The
site is currently offered in English, German and Italian
Web functionalities include
Asset allocation – by country or currency
Realised market profits
Dividends, distributions and expected income –
featured for each portfolio holding
Expected redemptions – facilitates the client’s cash
flow management (see following screenshot)
The web site utilizes a multi-level, 128 bit encryption
technology meeting the highest security standards
available on the market today. Further, the client has the
option to expand or decrease the number of people with
Screenshot Web Portfolio
AGGREGATED ACCOUNT REPORTING
BANK MEDICI offers its clients a complete overview of
their entire financial holdings via aggregated account
reporting. The overview consolidates assets held both at
BANK MEDICI as well as other financial institutions.
Reporting details include among others:
Total Assets and Allocation versus Benchmark
Current Value versus Invested Capital
Performance of Assets by Asset Type
Degree of Investment by Asset Type
Various cross-comparisons (e.g. Asset Allocation
versus Currency Exposure)
Transactions (Securities, Money Market and
Sample Report Elements
1. Fixed Deposits
Fixed-Term Deposits in Euros (from one month to five
years) and in foreign currency (from one to 12 months)
yield interest rates in line with market conditions.
The minimum deposits are EUR 20,000.00, USD
20,000.00, GBP 10,000.00, CHF 40,000.00, and the
equivalent of EUR 100,000.00 for all other freely
When a fixed deposit is opened, an interest rate that will
remain unchanged throughout the deposit period is agreed
for a fixed amount in a certain currency.
The money market is a subsection of the fixed income
market. Unlike the bond market, the money market
specializes in very short-term debt securities. Money
market investments are also called cash investments
because of their short maturities.
Money market securities are generally issued by
governments, financial institutions, and large corporations.
These instruments are very liquid and considered safe.
Because they are extremely conservative, money market
securities offer significantly lower return than most other
One of the main differences between the money market
and the stock market is that most money market securities
trade in very high denominations. This limits the access of
the individual investor.
There are a range of Money Market funds available where
the choice of which money market security to buy is
delegated to an investment management specialist.
For longer investment horizons, conservative bond and
fixed income funds can be a viable solution.
Sometimes customers need direct access to the treasury
department and trading floor. The brokerage service
investors can directly talk to the traders at the trading
desk. The multilingual trading desk of Bank Austria
Creditanstalt AG is linked to a large number of brokers
throughout the world and can trade bonds, equities and
derivatives in the most important markets. In order to
ensure coverage of the US Market, the desk is open until
Under the CA IB brand name, the Bank Austria
Creditanstalt Group has developed a specialist brokerage
service for Emerging Europe. Institutional investors in
Europe and the USA are offered a broad range of equity
products from the CEE region.
A network of subsidiaries and seats on the regional
exchanges provide the advantage of proximity to
established and emerging markets. Shares and derivative
products from Central and Eastern Europe are sold to
international investment funds through trading and
distribution centres in Vienna, London and New York. The
purchase of HVB Group through UniCredit Group has
further strengthened Bank Austria Creditanstalt's
placement capacity for capital market transactions.
Primary and secondary market activities in stocks are
supported by a stock research team with an excellent
knowledge of the markets. Top-quality analyses of
companies, industries and markets, prepared on a regular
basis, offer customers guidance in their investment
decisions. Industry focuses include telecommunications,
banks, oil & gas and pharmaceuticals. Practically all
markets in Central and Eastern Europe, including Turkey
and Israel, are covered.
STRUCTURED INVESTMENT PRODUCTS
While preserving clients’ invested capital, these products
offer participation in the performance of an underlying
asset (stocks, bonds, indices, real estate portfolios,
1. Capital Guaranties
Capital guaranteed investment solutions provide for the
protection of investment capital while offering the
potential of profits from positive performance of
underlying assets. These could include a region, industry,
currency, stock index or commodity. BANK MEDICI lets
clients access a range of such new products regularly. Some
of these instruments are wrapped into a life insurance
solution that provides beneficiaries with additional
Absolute Return Guaranteed Note
The Absolute Return Guaranteed Note is linked to the euro
denominated class of the Herald Fund USA.
Private Placement – Term Sheet
Capital Bank - GRAWE Gruppe AG
Absolute Return Guaranteed Note 2005 - 2009
Instrument: Guaranteed Note, linked to the performance of the euro
denominated tranche of the Herald Fund S.P.C. USA
Issuer: Capital Bank – GRAWE Gruppe AG
Issue Size: Maximum EUR 50MM
Minimum Investment: EUR 50.000,--
Subscription Period: continuous issue starting April 11, 2005
Maturity: June 30, 2009
First Value Date: May 24, 2005
Offer Price: 103%
Listing: Issuer will apply for listing on the Vienna Stock Exchange (third
Price Fixing: on the last business day of each month
Participation: The note’s performance is linked to that of the underlying
investment, differing from it by the amount of fees. Initially 100% of the
proceeds of this issue, less fees, will be invested directly in the euro
denominated tranche of the Herald Fund S.P.C. USA.
Early Redemption: monthly at the note’s net asset value less redemption
fee of 0,5 %
Disclaimer: The Note is exempt from the obligation of filing a prospectus according to § 3 Abs 1 Z 3 lit a KMG. The term
sheet and offering memorandum do not constitute a public offering. The term sheet and offering memorandum for the
note have been translated into English solely for informational purposes and shall only be authentic in German.
BANK MEDICI maintains active relationships with over 70
fund management companies that represent more than
2,000 investment funds. In addition to its monitoring and
selection capabilities, BANK MEDICI also develops
investment fund solutions with single manager and multi-
manager structures. Expertise includes the creation of
fund-of-funds and performance-protected fund structures.
The task of fund selection can be a daunting one. While
there are approx. 2,760 publicly traded companies listed
on the New York Stock exchange, there are about 6,800
mutual funds available in the U.S. alone. BANK MEDICI
undertakes the task of sorting through this universe to find
those funds that are especially suited to each client.
World Class Mutual Funds at BANK
ABSOLUTE RETURN PRODUCTS
BANK MEDICI benefits from the experience of its
chairman, who has been active in absolute return
structures since the mid-1980´s and enjoys extensive
personal contracts with the major players in this field.
These connections provide deep insight into manager
performance that can be just as crucial as quantitative
analysis in selecting investment structures, which fit the
BANK MEDICI's Competence Centre for Absolute Return
products, with its extensive manager database and
privileged access to the most important industry players,
provides advice on fund selection, asset allocation and the
creation of funds of funds.
Growth of USD 100 Invested with one of
BANK MEDICI’s Absolute Return Products
Herald USA US T-Bills S&P 500
1. GOLDEN PLAN
About Golden Plan
Fund-linked life insurance product
Designed as a guaranteed return investment
As the minimum term of the ‘Golden Plan’ is ten
years, the policy must be taken out by the time the
child reaches the age of eight. The earliest date for
disbursement is the child’s 18th birthday, the latest
when he or she reaches 26.
Minimum Investment of EUR 25,000.00 or more
Proceeds can be paid out anytime
About Wiener Städtische
One of the leading insurance groups in Central and
Eastern Europe, serving some 11 million customers
in 15 European countries.
For 180 years, the Company has been combining
success with security, earning an “A”-rating from the
renowned rating agency Standard & Poors.
Its long tradition of building value and growing
investments, as well as its unique mix of vision and
innovative products, make Wiener Städtische a
reliable and popular partner for tomorrow.
Direct and privileged personal access to key players in
promising local markets allows our clients to successfully
invest in real estate – predominantly in the fast
developing Central- and Eastern European markets.
BANK MEDICI offers its clients a variety of ways to invest
in real estate, such as outright purchase or via
Other structures include individualized custom projects for
a specific target clientele.
In participations, a long-term investment strategy is
directed towards a continuous and sustained increase in
the value of the company.
Through these services, a firm can pursue the goal of
further diversifying its base of anchor tenants and the
geographical locations of its properties. This allows the
company to minimise the impact of regional or industrial
A Few Recent Transactions
42165 square meters
of real estate property to
Allgemeine Anlagen und
This transaction was arranged by
BANK MEDICI AG
focused on a portfolio
made of “retail” properties of €212 million
entered a Joint Venture with
This transaction was initiated by
BANK MEDICI AG
acquired 50% of
TURATI IMMOBILIARE SRL from
as part of a new Joint Venture
between the two companies
This transaction was arranged by
BANK MEDICI AG
GENERAL FINANCIAL RESEARCH / INFORMATION
Customers of BANK MEDICI can access a vast treasure of
research information on various topics ranging from stock
market comments to macro economic research on CEE
countries. While all research is available in printed format
most publications can be downloaded via the Analyses &
Research web platform of BA-CA. In addition BA-CA offers
a range of electronic news letters edited by the experts of
BA-CA’s Economics Department with comments on recent
events affecting securities markets.
Research published include but are not limited to:
CEE Commentary analyses and comments on
current developments in the CEE countries. CEE
Commentary, published in English and German,
appears monthly, or more frequently if necessary.
The CEE Report is published quarterly focusing on
current events in the CEE countries
An Investment Guide is published ad hoc with
periodic updates for the following countries:
▫ Bosnia ▫ Poland
▫ Bulgaria ▫ Romania
▫ Croatia ▫ Serbia
▫ Czech Republic ▫ Slovakia
▫ Hungary ▫ Slovenia
The Key Economic Indicators Report compares
economic data for Austria with the corresponding
statistics for Germany, the EU-12, the US, and Japan
and is published twice a year in German and
Report Xplicit is published in response to recent
developments throughout the year in German or
English. Topics range from ‘Banking in CEE’ to the
‘The Euro in Eastern Europe’.
TRUSTS AND OTHER VEHICLES - WEALTH STRUCTURING
Internationalisation, the growing complexity of family
wealth structures and a changing regulatory landscape
highlight the importance of sophisticated and efficient
BANK MEDICI’s Services include:
The domiciliation of companies and other vehicles
for tax-efficient revenue streams
The domiciliation of funds that combines the
opportunity to use professional asset management
services in a favorable fiscal environment.
The creation of trusts giving the advantage of
allowing the appointment of beneficial owners and
heirs, while preserving the interests of the client
The creation of life insurance portfolios that form a
protective layer around the client’s assets in a wide
variety of way.
The setting up of tax efficient financing structures
The creation of life insurance portfolios under Lichtenstein
laws form a wrapper around the client's assets thus
encompassing essential advantages:
Substantial savings: Tax deferred accumulation of
assets in most cases
Individual policy instead of pooled assets
Asset Management in accordance with the client’s
directions, including unrestricted choice of
Estate planning: Fast devolution of assets without
regard to the outcome of estate proceedings
Offers most of the specific features of a trust or a
Privacy as an essential feature: Insurance secrecy,
like bank secrecy, under Liechtenstein law protects
the client’s private sphere
MEDICI HERITAGE FOUNDATION
The Medici Heritage Foundation is the Bankier’s centre of competence bringing
together its unmatched assets and innovation with world-class academic partners. The
Heritage Foundation’s alliance partners include the Vienna University of
Economics and Business Administration and the Wharton Business School’s
Global Family Alliance, a private forum whose mission is to enhance the
marketplace advantage and social wealth creation contributions of global families.
Together, the Foundation and these prestigious institutions are applying breakthrough
academic research and Bank Medici’s decades of real-world experience to identify the
key financial and personal needs of family business dynasties and develop novel
solutions to address these concerns. Critical areas of focus include wealth
management, philanthropy and family business governance, as well as personal
pursuits and relationship issues unique to these households."
Looking Forward to Prove
1010 VIENNA, AUSTRIA