“We truly believe that creating these guides and making them freely available will be beneficial to our clients and the public in general. Unfortunately, there are gaps in knowledge on financial issues which we need to start addressing,” commented David G. Curmi, MSV Chief Executive Officer.
“Financial literacy is a nationwide social issue. Everyone can benefit from knowing more about how certain investments work and what options are available in the market. This will lead to informed decisions being taken, and eventually individuals can become more financially independent.”
The guide explains how the MSV With Profits Fund combines investors’ monies which it then invests directly in a wide range of assets including equity, bonds, property, cash and others. From the returns made, a bonus rate is declared on an annual basis and distributed to policyholders.
A special feature of the With Profits Fund is what is known as “smoothing”, which is the process of holding back some of the investment return in good years to support bonuses in times of weaker investment performance. This means that the Fund is able to declare a relatively similar bonus rate year on year, even when investment markets experience many changes over time, giving investors greater peace of mind.
The MSV With Profits Fund also offers capital guarantees, optional annual income and the potential to receive an additional bonus when the plan matures, depending on how long the money is invested for. Under current legislation, policyholders are not liable to pay any tax on investments in the Fund, making it one of the most tax-efficient savings options available.
For 2014, MSV Life declared an annual bonus of 3.35% on the plans currently available and a final bonus of 1.5% for each year over the 10th year in respect of policies maturing in 2015.
For a free copy of A Simple Guide to the MSV With Profits Fund, you can send an email to email@example.com or download it from the MSV Facebook page under ‘Download’.
MSV Life p.l.c. is authorised by the Malta Financial Services Authority to carry on Long Term Business under the Insurance Business Act, 1998.