MMPI is delighted to announce the launch of its new investment product – the MMPI Escalator Plan Series 58A. The investment is underpinned by the French bank BNP Paribas – a highly-regarded international bank with a stable credit rating of A+.
The MMPI Escalator Plan Series 58A offers a great opportunity to invest in the stock markets with additional capital protection. There is conditional capital security, which means that BNP will underwrite 100% of the investment unless the markets fall by 40% or more. This is not a traditional deposit account and the investment is not suitable for any investor who believes that it will behave like a traditional deposit account. It has an innovative design that allows it to offer a far greater potential return than a deposit account. But this reward is off-set by the risk that investors may not get back all of the money invested.
This risk/reward balance is a well-worn topic of debate amongst investors. All investments carry a certain level of risk – it would be foolish to think otherwise. Some investors naively think that there’s no risk in investing money in a bank. But banks can go bust! On its 7-point risk scale MMPI always demonstrates this risk by scoring bank deposits as a 2. The jargon used to describe this threat is counterparty risk – in other words, the risk that the investor’s counterparty bank may default on its commitments (for whatever reason).
In comparison, Series 58A scores 4 on the 7-point risk scale. This is two notches higher up the curve, which is a clear enough signal of the additional potential risk being undertaken in return for a potential higher reward.
Series 58A is an investment that is dependent on the performance of the EuroStoxx50, Europe’s leading market index. It will pay a potential compound annual rate of 4.20% after 12 months if the index finishes higher than its starting price.
Series 58A is designed to terminate once there is a pay-out or, alternatively, to rollover for a further 6 months at an increased potential return of 6.30%, if there is no pay-out. The maximum potential return is 21%. Series 58A will not suit everybody but it is easy to understand and it is presented in fair and transparent language. The transparency allows investors to examine under the bonnet and to make a balanced judgement on the investment opportunity presented.
Prior to considering an investment in the MMPI Escalator Plan Series 58A please read the product brochure, including the appropriate warnings that highlight the investment risks. Its sister product MMPI Escalator Plan Series 58B is also available. Series 58B scores slightly higher on the risk scale (5); and offers potentially higher returns – 8% after 12 months with a maximum return of 40%.
Should you require further details about any aspect of the MMPI Escalator suite of investment products please call MMPI on (01) 66 88 322 or e-mail invest@mmpi.ie. Full details are available on our wesite at https://www.mmpi.ie/investments/investment-products/
