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MMPI Investment Report 2019 Q3

 

Another exciting quarter for MMPI’s investment products! – this time with 6 maturities posting positive returns. These represent attractive pay-outs given that deposit interest rates are close to zero and government bonds are producing negative returns.

The MMPI Escalator Plan Series 44A, which tracked the performance of the EuroStoxx50 index, matured early after 18 months paying 105.10%; while MMPI Escalator Plan Series 49 matured after just 12 months with a return of 104.30%. The products were assessed as risk score 4 on the 1-7 risk scale using European regulator guidelines (ESMA). A risk score of 4 implies that the capital is more at risk than, say, a bank deposit (risk score 2). The terms of these products meant that the investors’ capital was 100% secure provided the index did not fall by more than 40%. At its worst point, the index fell by only 16% but, regardless, they returned 105.10% and 104.30%.

The MMPI Escalator Plan Series 51A performed even better. It returned 104.50% after 12 months. This product also tracked the performances of EuroStoxx50 index and the capital security was never in danger.

The MMPI Escalator Plan Series 15 had underlying assets of AXA, BASF, Total and SAP. The construct scored a slightly higher risk score at 5 but the capital safeguards were never challenged. The return to investors was 101.00%.

It remains the case that just 5 of MMPI’s investment products out of a total of 61 maturities in its Escalator and Protector series, stretching back over 10 years, have returned less than 100% of the initial capital invested.

MMPI recognises that capital security is very important for investors. In the cases cited above the protection was provided by BNP Paribas and Societe Generale, two of Europe’s best capitalised banks. The banks currently have top-quality credit grades and stable ratings that are well ahead of the Irish 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 additional risk associated with the Escalator Series and this needs to be adequately borne in mind and understood.

As always MMPI recommends that potential investors should read the Key Information Document and 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 have come to realise that deposit returns are not keeping pace with inflation and that this position is unlikely to change over 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 normally 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 early redemptions, 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://www.mmpi.ie/investments/investment-products/

 

 

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