The MMPI Escalator suite of investments produced some wonderful performances for very satisfied
investors in Q4 2017.
The MMPI Escalator Plans Series 27 matured early after 24 months paying a really great return of 16%. This investment provided 100% capital security throughout the term provided the EuroStoxx 50, the leading European share index, did not fall by 40% or more. This capital-protection level was never threatened.
The MMPI Escalator Plan Series 33A paid out 5.60% after 12 months on the out-performance of the EuroStoxx 50. This represents a really healthy growth over deposit returns. Series 33A provided 100% capital security once the index did not fall by 40% or more. In fact, the index did not fall at all so the initial capital was very secure. (Series 33B had already matured earlier in the year paying 3.2% after just 6 months – that’s an annual equivalent of 6.50%).
Also in Q4 2017, the MMPI Escalator Plans Series 35A and Series 35B matured after 12 months. Series 35A returned 6.60% and Series 35B paid out an excellent 8.20%. Once again the capital security was very well cushioned.
Just 4 of MMPI’s investment products out of a total of 39 maturities, stretching back over 7 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.
On a risk scale of 1-7, MMPI assesses bank deposit accounts as a 2. Most of MMPI’s Escalator products score 4. 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 invest@mmpi.ie
