The MMPI Escalator suite of investments produced some amazing outcomes for some very satisfied investors in Q2 2018. This was achieved in the face of a generally weaker market performance throughout the quarter and increased geopolitical tensions on trade tariffs.
The MMPI Escalator Plan Series 37A matured early after 12 months paying a return of 103.00%. This investment provided 100% capital security once the EuroStoxx 50 index did not fall by 40% or more. The capital-protection level was never threatened.
The MMPI Escalator Plan Series 37B matured early after 12 months paying a return of 105.20%. This investment also provided 100% capital security once the EuroStoxx 50 index did not fall by 40% or more. Here too the capital-protection level was never threatened.
The sister product in Series 37 is the MMPI Escalator Plans Series 37C and has an observation next May with a potential return of 110.95%.
The MMPI Escalator Plan Series 38 produced 112% return after 12 months tracking the performance of a basket of shares [BP; HSBC and Glencore]. 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.
Not all of the MMPI products that had observations in Q2 successfully kicked-out.
The MMPI Escalator Plan Series 14, which is tracking Diageo; Tesco; Heidelberg Cement and BP, rolled over to its next observation in November 2018, where the pay-out is potentially 163.00%. The Tesco share price is behind the curve but is recovering by the day and is now just 9% away.
The MMPI Escalator Plan Series 21, which is tracking the EuroStoxx50 and Nikkei225 indices, rolled over to its next observation in October 2018, where the pay-out is potentially 134.58%.
The MMPI Escalator Plan Series 22, which is tracking ING Groep; AXA; Sanofi and Lloyds Banking Group, rolled over to its next observation in November 2018, where the potential pay-out is almost 175.00%.
The MMPI Escalator Plan Series 15 was very unfortunate. It missed out by a mere -0.36%. It has another chance to come good later this year where the potential pay-out is 163.90%. Once again the capital security is very well cushioned.
Just 4 of MMPI’s investment products out of a total of 46 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 is provided by either BNP Paribas or Societe Generale, 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.
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. Investments in the MMPI Escalator Series have 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 invest@mmpi.ie. Full details are available on our website at https://mmpi.ie/investments/investment-products/
