The image at the bottom of this article provides an overview of the MMPI Product Performance Summary.
The MMPI Escalator suite of investments produced some extraordinary outcomes for some very satisfied investors in Q1 2018. This was achieved in the face of hostile volatility and a generally flat market performance throughout the quarter.
The MMPI Escalator Plans Series 24B matured early after 30 months (its 5th observation date) paying a whopping return of 28.55%. This investment provided 100% capital security throughout the term – provided the EuroStoxx 50 and Nikkei 225 indices did not fall by 40% or more. The capital-protection level was never threatened. A great result!
The sister version of Series 24B is the MMPI Escalator Plans Series 24A, which has its 3rd observation next July with a potential return of 21%.
The MMPI Escalator Plan Series 36A produced a 4% return after 12 months and the MMPI Escalator Plan Series 36B also matured after 12 months paying out 8.00%. Both of these products were tracking the EuroStoxx50 index and the capital protection remained intact throughout the term of the investment.
These are very healthy returns when one considers that bank deposits continue to pay close to zero. On a risk scale of 1-7, MMPI assesses bank deposit accounts as a 2; while the products mentioned above all scored 4 – a little higher risk for much better returns.
It was not all plain sailing. The MMPI Escalator Plan Series 16 also had an observation in Q1 but its investment in Standard Chartered Bank continued to underperform. The 100% capital security remains firmly in place.
The MMPI Escalator Plan Series 20A had its 3rd observation and Series 20B its 6th. Both missed out by 3.9%. Series 20A has its next assessment in Feb 2019 where the potential return is 30% and Series 20B is up again in August 2018 where 40.95% is the potential pay-out. Here too the 100% capital protection looks very secure.
The MMPI Escalator Plan Series 23 was very unfortunate. It missed out by a measly 1.5%. It has another chance to come good later this year where the potential pay-out is 23.4%. Once again the capital security is very well cushioned.
Just 4 of MMPI’s investment products out of a total of 39 maturities, stretching back over 8 years, have returned less than 100% of the initial capital invested and these were pre-determined downsides at 5% – 10% of the initial capital.
Capital security is very important for investors. In the cases cited above the protection was provided by either BNP Paribas or Credit Suisse, two of Europe’s best capitalised banks. They have current credit ratings of A+, which are well ahead of Irish and UK banks.
We realise that the MMPI Escalator Series of investments is not for everybody. But the investments do represent an excellent opportunity to beat deposit returns. There is an additional risk associated with the Escalator Series and this needs to be adequately borne in mind and understood.
Our latest products MMPI Escalator Plan Series 47 and Series 48 are designed using the same investment model. We try to ensure 100% capital security in the first instance and then build from there. Series 47 tracks the EuroStoxx50 index while Series 48 is linked to a basket of 3 shares. Full details are at www.mmpi.ie.
As always we recommend that potential investors should read the product brochure where a full list of WARNINGS is provided. Specific professional advice, offered by MMPI in private consultation, should always be sought in relation to individual circumstances.
MMPI will continue to take soundings from investors as to their investment preferences. To-date, investors have been most concerned about achieving income in a low interest rate environment. Many now realise that deposit returns are not keeping pace with inflation and that this position is unlikely to change in the next few years.
Investors are also concerned about access to funds in case of emergency or where personal circumstances take an unexpected turn. The MMPI Escalator Series has a nominal 5-year term but each investment also contains daily liquidity. This means that the funds may be redeemed at any time during the investment term. Some early redemptions may mean that investors will not get back all of the money they invested but there are plenty of other examples where investors, requiring access to funds, are in a position to receive 100% of their initial capital plus additional positive growth.
Should you require further details about any aspect of the MMPI Escalator suite of investment products please call the office on (01) 66 88 322 or e-mail email@example.com.
Below you will find an overview of MMPI Product Performance Summary: