Third tranche of life policy

MSV has launched the third tranche of its Capital Guaranteed Bond (CGB), a 10-year unit-linked life policy that guarantees the return of capital invested if held to maturity. It is available in both Maltese lira and euro.

The bond is aimed at cautious investors whose primary concern is the protection of capital but who also wish to obtain some exposure to the performance of the equity markets.

Throughout its duration the CGB provides two types of coupons that are paid annually. In the first two years the coupon is guaranteed at the rate of 6.6 per cent per annum. In the remaining eight years, the coupon is variable up to a maximum of 8.5 per cent per annum and is linked to the performance of a basket of 25 shares. From year four onwards, the variable coupon has a minimum guarantee of 50 per cent of the highest previous variable coupon.

CGB investors also have the option to appoint one or more beneficiaries who will be entitled to receive the death benefit or other benefits under the policy.