GareeMICs

The GareeMIC programme was introduced in 1999 as the first structured mortgage-backed security available on the local capital market. GareeMICs are bonds secured or collateralized by a specific pool of performing mortgages. These bonds give the investing public, individual and institutions alike, the opportunity to diversify their portfolio into mortgage-backed assets without having to commit to long-term mortgage investments.

Why to invest in GareeMICs?

  • Investments pay you a monthly income that can cover your expenses
  • Investments allow you to put aside a nest egg for your children or grandchildren
  • It is a useful tool that allows you to plan for your retirement
  • It is a valuable Investment that allows you to maximise yields by investing your retirement lump sum
  • This investment can be used to establish your own annuity
  • GareeMICs allow you to diversify your investment portfolio

The key features of this investment are:

  • Range of investment terms
  • Floating coupon rates tied to a specific portfolio of mortgages
  • Regular interest bonds that provide monthly payments
  • Capitalized interest bonds that defer monthly payments
  • Zero Coupon Bonds for the longer term investors
  • Detailed monthly statement

Additional Information
This highly attractive investment programme offers investors the opportunity to satisfy a range of diversified demands – some investors have utilized the monthly cash flows from the bonds to meet specific monthly expenses, others have used the monthly cash flows to enhance their monthly pensions. Some investors have purchased these bonds as a long term investment as part of their personal retirement portfolio or as a means of providing “ something ” for their grandchildren. Other investors see these investments as one way of diversifying their investment portfolio and have also taken the option to purchase additional bonds with their monthly cash payments. GareeMICs are liquid investments as the Bank has unconditionally undertaken to repurchase the bonds from individual investors should the need arise. With this guaranteed market, individual investors are able to make long-term investments, which offer better yield while knowing that they can liquidate the bonds if required.

As an investment strategy for retirement planning, investors can purchase bonds on a regular basis, and/or use the total monthly cash flows to purchase additional bonds, i.e. reinvest the income, to match their retirement age or beyond. The objective is to build up a portfolio such that at retirement, the monthly income from this portfolio can be used to pay yourself a monthly pension without spending the capital. This capital or “ nest egg ” can be used in the case of emergencies or passed on to your heirs.

The GareeMIC programme is very flexible and can be used to meet different investor needs and portfolio objectives.