MSV has launched a new tranche of the MSV Capital Guaranteed Bond (CGB) that matures in 2016.
The CGB is a 10-year unit-linked life policy aimed at cautious investors, because it guarantees the return of capital invested intact (if held to maturity) – a feature very much in demand by Maltese investors.
Throughout its duration, the CGB provides two types of coupons that are paid annually. In the first three years the coupon is guaranteed for a total of 13.5 per cent (4.5 per cent payable annually). In the remaining seven years, the coupon is variable and is linked to the performance of a basket of 20 shares. The variable coupon will provide a participation of any rise in the value of the equity basket, subject to a maximum of nine per cent per annum. Even if the equity basket registers a negative performance in any particular year, the capital remains protected and guaranteed.
The CGB is a euro-denominated investment, which was seen as a natural choice in view of the strong likelihood of a switch in the domestic currency from the Maltese lira to the euro in 2008.
MSV have developed the CGB jointly with Société Générale (a leading French banking group) that has long been considered one of the leading institutions in the provision of capital-protected structured products.
The offer is limited, with applications opening on 2 May and closing on 12 June or earlier, if the amount is fully subscribed.
The minimum subscription is only e5,000 (equivalent to around Lm2,200) and is therefore accessible to many small investors, at whom this investment is targeted.
More information is available from MSV head office on free-phone 8007-2220 or by email [email protected]
Guarantees provided by Société Générale are given by a formal agreement between Société Générale and Middlesea Valletta Life Assurance Co. Ltd. Investment returns can go down as well as up and past performance is not necessarily a guide to future performance. Investment should be based on the full details available in the product information guide, a copy of which is available from MSV. Changes in the rate of exchange of currencies may also affect the value of the investment. Middlesea Valletta Life Assurance Co. Ltd is licensed by the MFSA to provide investment services under the Investment Services Act 1994 and authorised to carry on long-term business under the Insurance Business Act 1998.