07/10/2008
12.00 p.m
Press Release - Banca Mediolanum
Solidarity Fund: For all Banca Mediolanum mortgage holders
Double Chance: A new service to make gradual investments in equity markets
while guaranteeing a 5% return for 2 years on the uninvested capital
In yet another step to meet the needs of its mortgage customers,
Banca Mediolanum has resolved to establish, at its own expense, a
Solidarity Fund to protect present and future first-home mortgage holders in the event of severe permanent disability following injury or disease.
Thanks to the fund, Banca Mediolanum will extinguish the mortgage loan (up to €250,000), thus effectively shielding customers who have suffered a personal tragedy from the additional loss of their home. Initial funding will come from a share of the Company’s revenues from the new
Double Chance service, specifically 0.5 percent of the inflows.
Banca Mediolanum estimates that the overall cost of this initiative will be about €8 million over the next 22 years (average duration of the portfolio), calculated on current mortgage holders. Factoring in new home loans that could be granted over that same period, total cost would reach about €50 million.
Double Chance was born out of the collaboration with
BlackRock,
JPMorgan Asset Management and
Morgan Stanley Investment Management,
Mediolanum’s partners in the ‘Global Selection’ funds of funds.
Double Chance is a financial service which entails the deposit of capital (a minimum of €25,000) in a Banca Mediolanum account at a guaranteed rate of return of 5% or the 3-month Euribor rate, whichever is higher, for the duration of the investment phase (that can be up to 24 months). In fact, the service works by setting up automatic bi-monthly investments in international equity markets through the global equity funds of funds created in collaboration with the three investment houses mentioned above.
Customers can choose investment terms of 3, 6, 12, 18 or 24 months. Thus, leveraging Dollar Cost Averaging, investors are assured of buying equities at lower average price per unit, taking full advantage of market volatility.
This service meets the needs of investors who have a
long-term investment horizon. It
guarantees high returns on uninvested capital, and in tandem leverages a proven investment strategy, which will certainly deliver great benefits for investors in the future, taking advantage of the current favourable buying opportunities.
Milan, July 10, 2008
