Mutual funds have become the most popular investment vehicle in the world. MSI's portfolio of preferred mutual funds provides the traditional advantages of diversification of risk, along with the potential of improved returns, while offering the tax advantages of investing in offshore funds.

The MSI-Preferred Investment Fund was launched in late 1994 and was the first public offered mutual fund established in The Bahamas for Bahamians in the local currency. As with mutual funds everywhere, the MSI-Preferred Investment Fund gives the investor the ability to achieve higher returns by pooling funds, spreading the risk, and thereby taking advantage of higher rates that would normally be associated with the investment of greater sums of money.

The key to successful investing through mutual funds is a carefully constructed portfolio. Until the establishment of the MSI-Preferred Investment Fund, this was something in which Bahamians were unable to participate, even though financial institutions in The Bahamas managed in excess of $40 billion through offshore mutual funds for foreign investors.

Consecutively, on an annual basis since its inception, MSI-Preferred Investment Fund has reported earnings substantially greater than traditional Bahamian dollar investments, including savings accounts and certificates of deposits in commercial banks.

MSI-Preferred Investment Fund offers a broad range of investments. In addition to investing in Government securities, MSI-Preferred Investment Fund includes shares in a number of local companies.

In addition, in the offshore market, MSI has selected several funds which have proven themselves to be consistent over a number of years in an excellent performance track record. These include funds under the umbrella of Fidelity, MFS Meridian, GAM, and Skandia.

MSI also has a portfolio of private offshore mutual funds under its own label for a variety of investment styles and objectives:

(i) MSI Strategic Equity Fund - Focus on select top performing equities;

(ii) MSI Global Bond Fund - Focus on fixed income multi-country, multi-sector bonds;

(iii) MSI Equity Angel Fund - Focus on initial public offerings

(iv) MSI Preferred Realty Fund - Focus on real estate investment opportunities.

With MSI's mutual funds, the investor can protect his or her money, minimize or defer taxes, and earn the maximum return with a minimum of risk.

MSI Mutual Fund advantages:

  • Allows the investor to spread risk through a carefully constructed and monitored, diversified portfolio of investments.
  • Provides a better-than-average rate of return by pooling funds to take maximum advantage of higher rates normally associated with the investment of greater sums of money.
  • Allows the investor to enjoy all of the advantages of an offshore investment vehicle, while gaining access to the financial benefits of global investment.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances