MMPI Escalator Plan Series 67

 

 

MMPI is delighted to announce the launch of its new investment product – the MMPI Escalator Plan Series 67, 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 67 offers a great opportunity to invest in the stock markets with additional capital protection that is not normally available to investors. 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 believe 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 investors’ counterparty bank may default on its commitments (for whatever reason).

In comparison, Series 67 scores 5 on the 7-point risk scale. This is higher up the risk curve, which is a clear enough signal of the additional potential risk being undertaken in return for a potentially higher reward.

Series 67 is an investment that is dependent on the performance of the EuroStoxx 50 index. The product will pay a potential compound annual rate of 5.70% gross after 12 months if the index outperforms. There is also a version of the product paying 3.88% after 12 months even if the index falls by 5%.

Series 67 is designed to terminate once there is a pay-out or, alternatively, to rollover for a further 6 months at an increased potential return if there is no pay-out. Series 67 will not suit everyone, 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 67 please read the product brochure, including the appropriate WARNINGS that highlight the investment risks. Series 67 also has a key information document, specifically designed for potential investors, that is written in a standardised format allowing investors to compare Series 67 seamlessly against other investment products.

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 product details are available on our website at https://www.mmpi.ie/investments/investment-products/

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