Ever wonder why interest rates are cut when the economy is struggling, and hiked up when the economy is booming? The rationale is actually pretty straight-forward; when you cut rates, borrowing costs decrease prompting businesses to take loans out (cheaper money) to increase manpower and expand production. The goal is to create a scenario where money can infiltrate the economy from many different angles thus fostering business success and enhancing the purchasing power of your average consumer.
The opposite is true when the economy is on fire. And at the moment we’re in the hot zone with all reports indicating that “Irish banks are among the best placed lenders in Europe to benefit from the 1.5 percentage points in rate hikes likely to be delivered by the European Central Bank (ECB) over the next three years, according to analysts at Deutsche Bank.” *
You’ve most likely felt the impact of this already because we are crawling out of an unprecedented long length of time with low/negative interest rates. Your surplus cash deposited in the bank yields you nothing but a storage charge! Inflation in Ireland is currently at around 5% and charges are being applied to business accounts and pension funds sitting in a cash fund so rather than the opportunity to earn interest income, your savings are actually being eroded.
From January 2020 to January 2022 we saw a 9.68% gross return in our low-medium risk fund portfolio which compares to -1% if your funds were in a cash fund.** These figures were taken during a pandemic when many parts of the economy were struggling. When you consider the long term effects, is it any wonder you might be thinking about the old fashioned way of storing money, that is, under your mattress!
We see the stress this situation is causing so we’ve put our heads together to come up with a solution of what we think is the best way to beat inflation.
Introducing Trust Matters Corporate Fund
At the moment, for every day your hard earned money rests in your bank account, it loses long-term value. With that in mind we have developed a “Corporate Fund” specifically to deal with those banks carving into your savings and because it makes sense to make your money work for you. We understand that investing excess cash can cause some anxiety so to cater for more risk adverse clients, the answer is a lower risk investment solution. By choosing a lower risk initiative, your cash is in a much better position to work as hard as you did to earn it!
We’ve adopted our own version of the KISS acronym, that is to Keep IT Simple & Sound. The terms are as follows:
- Minimum investment of €250,000
- 101% allocation to cover the government levy
- No exit penalties and instant access if required
- Recommended minimum investment term of 3-5 years
- 6 monthly report
When you examine the daily value of your money and how it is being chipped away, the long-term impact on your wealth could be significant. Our Corporate Fund aims to beat the current abysmal interest rate menu offered by banks right now, without taking high risk.
The time to act is now and our team are excited to tell you more. Call 01 563 4300 or email Andrew@trustmatters.ie
Mamcol Limited t/a trust matters is regulated by the central bank of Ireland. Warning: Past performance is not a reliable guide to future performance. The value of your investment may go down as well as up. This fund may be affected by changes in currency exchange rates. If you invest in this fund you may lose some or all of the money you invest.