15 JANUARY 2003

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Globe launches Income and Capital Guaranteed Product

Globe, with the assistance of one of the largest French banking institutions, Societe Generale, are back in the market with the launch of another capital guaranteed product - ‘Income & Capital Guaranteed Gainer 2007’ (ICGG). This product is being issued by SGA Societe Generale Acceptance N.V. following the success of the first guaranteed product launched in July 2002. The ICGG utilises the same winning formula as the first issue with some changes that reflect the feedback and needs of local investors.

The investment which is denominated in GBP and which matures after a four year term (February, 2007), provides a balanced mix of income and capital growth, whilst guaranteeing one’s original capital if held till maturity. Income is paid on one half of the invested capital, whilst the other half of the capital will give the investor the opportunity of earning greater returns by participating in the price movements of 15 selected international blue chip companies. These include renowned companies like Abbey National, Lloyds TSB, UBS, Volvo, Unilever and Nestle.

Starting from the second year of investment, income is paid at a guaranteed fixed rate of 3 per cent*, increasing to 5 per cent* in the third year and reaching 7 per cent* in the final year. The novel aspect of the investment is that irrespective of whether the prices of the 15 shares go up or down, the investor will still gain. This means that on maturity the capital is fully repaid together with a 100 per cent of the performance, positive or negative, of the share registering the lowest change.

Investors have the opportunity to invest in this product with a minimum investment of GBP 3,000. There are no initial or end charges and with the prevailing trend of falling interest rates this investment represents a good alternative for investors seeking to secure their capital whilst at the same time receiving income throughout the term of the investment as described above. Furthermore, if and for as long as the Notes are listed on the Malta Stock Exchange, all capital gains are exempt from capital gains tax whilst investors are eligible to apply for the deduction of 15 per cent withholding tax on the income earned. This offer is available until 14 February 2003 however may close earlier if over subscribed. Further information may be obtained from Globe Financial Management Limited’s offices in Gzira, Qormi, Portomaso and Arkadia, Gozo.

These figures represent an annual interest rate of 1.49 per cent (from allotment date -16 Feb 2005), five per cent (17 Feb 2005 - 16 Feb 2006), 6.99 per cent (17 Feb 2006 - 22 Feb 2007). Investors should refer to the Supplementary Offering Circular dated 22 December, 2002 available from Globe Financial Management Limited, prior to investing in this product. Past performance is not necessarily indicative of future performance and the value of investments can go up or down. Depending on the investor’s currency of reference, currency fluctuations between GBP and such currency may adversely affect the value of the investment. Globe Financial Management Ltd is licensed to conduct investment services business by the Malta Financial Services Authority.


Copyright © Newsworks Ltd. Malta.
Editor: Saviour Balzan
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