M&Z p.l.c. Ordinary Shares

MeDirect Bank (Malta) plc would like to announce that we are accepting applications for anyone interested in the Initial Public Offering (IPO) in M&Z p.l.c. (previously M&Z (Marketing) Limited – the Issuer) ordinary shares.

There are 11,550,000 ordinary shares on offer, having a nominal value of €0.125 per share being offered at a price of €0.72.

You will be able to apply for subscription subject to a minimum application of 2,500 shares and in multiples of 250 shares thereafter.

As per the Dividend policy detailed on the prospectus, it is the Board’s intention to recommend a total dividend distribution of not less than 50% of distributable reserves in respect of the Ordinary Shares. Moreover, for the financial years ending 31 December 2022 and 31 December 2023, the Board intends to distribute dividends in respect of the Ordinary Shares amounting to not less than 75% and 65% respectively of distributable reserves generated in each financial year.

Full details about this IPO are set out in the Prospectus 25th January 2022 which can be found here.

MeDirect will be accepting applications from anyone who is interested in applying. All applications must be received by not later than 18th February 2022. In the event of over-subscription, the Issuer reserves the right to close the Offer Period before this date.

If you are interested in applying, please send us a Secure Mail or contact your existing Relationship Manager.

For further information, please call us on (+356) 2557 4400 or send an email to customerservice@medirect.com.mt.

The information set forth in this article is only for informative purposes and should not be construed as an offer to sell or solicitation of an offer to subscribe for or purchase any investment. The information provided is subject to change without notice and does not constitute investment advice or any guarantee of returns. Please consider the terms and conditions governing the relevant investment prior to making any investment decision. Investors should note that at worst they may lose all of their invested principal in the event of default, insolvency and/or bankruptcy of the relevant issue. The financial instruments discussed may not be suitable for all investors and investors must make their own informed decisions and seek their own advice regarding the appropriateness of investing in financial instruments or implementing strategies discussed herein.

MeDirect Bank (Malta) plc has based this document on information obtained from sources it believes to be reliable but which have not been independently verified. MeDirect Bank (Malta) plc does not therefore provide any guarantees, representations or warranties. The value of any investment or income may go up as well as down and past performance is no guarantee of any future performance. When an investment is denominated in a currency other than your local or reporting currency, changes in exchange rates may have an adverse effect on your investment.

MeDirect Bank (Malta) plc, company registration number C34125, is licensed by the Malta Financial Services Authority under the Banking Act (Cap. 371) and the Investment Services Act (Cap. 370). This material is intended only for the use of the recipient and shall not be reproduced in any way, whether in whole or in part, by the recipient. Any unauthorised disclosure, use or dissemination, either in whole or in part, of the material contained within is strictly prohibited.

Franklin Templeton Thoughts: The Inflation Debate

Disagreements about the outlook for inflation in the new year and beyond continue. Stephen Dover, Head of the Franklin Templeton Investment Institute, recently led a lively debate on the topic with Western Asset’s John Bellows and Franklin Templeton Fixed Income’s Sonal Desai.

As the late German Economist Karl Otto Pöhl once said, “inflation is like toothpaste, once it’s out, you can hardly get it back in again”. Ironically, consumers’ and business’ expectations of higher future inflation can lead to…. higher future inflation.

At this time last year, the markets were more concerned about slowing economic growth than inflation. The prevailing view was that inflation was a “transitory” consequence of post-lockdown reopening. To the surprise of even the Federal Reserve (Fed), elevated inflation has had staying power, whether caused by pandemic-driven supply-chain issues, or expansive monetary and fiscal policies. Whether inflation will continue at above-trend levels or be more transitory is still hotly debated by economists, including across Franklin Templeton’s independent investment groups.

I recently spoke with Franklin Templeton Fixed Income Chief Investment Officer Sonal Desai, who last year predicted that inflation would be higher than consensus, and Western Asset Portfolio Manager John Bellows, who is more in the transitory inflation camp, about their views on inflation. Here are some highlights.

  • Sonal thinks the market is still being somewhat sanguine about the second half of this year and that inflation may remain elevated above consensus expectations. Market expectations are quite distinct from broader survey-based expectations, with households and businesses being far more concerned about high inflation than the market (or the Fed). The futures market has priced in that inflation will drop very sharply in the second half of 2022, but Sonal thinks that may be too optimistic as several factors driving higher inflation remain, and the magnitude of the Fed’s intervention may be distorting markets. While she does not foresee the 7%+ inflation year-on-year levels of this past month, she does think that some of the supply-and-demand issues may take longer to mitigate.
  • John has a different view. He thinks inflation will moderate in the next six to 12 months and may even end up below consensus expectations over the next three to five years. Supply constraints may be more significant than most expected, but historically, supply shocks have led to supply increases that allow inflation to subside quickly. Demand for goods has been higher than pre-COVID levels and may wane as the effects of the pandemic recede. John points out that business and consumers may have overordered due to concerns of lack of supply, and this will likely be resolved as more supply comes on board. He also thinks that monetary and fiscal policies in the United States going forward are likely to reduce inflation levels. In particular, after being very stimulative in 2021, fiscal policy will likely turn into a headwind in 2022 and beyond. As for the Fed, removing accommodation in response to higher inflation will help to anchor expectations.
  • Sonal believes that the massive monetary overhang from the dramatic expansion of central bank balance sheets and explosion of government debt will continue to put pressure on inflation dynamics. If the Fed were to move in the direction of tightening policy sooner and more aggressively than priced into the market, then inflation may be less of an issue five years down the road. However, if the Fed takes a gradualist approach as it has for most of the last 10 years, this creates the potential for longer-term inflation because inflation expectations of consumers and producers—which have already become unanchored—will rise even further and influence both wage-setting and price-setting behaviour. Overall, Sonal thinks the Fed finds itself in a very different situation than it has in the past: when inflation was stable below 2%, the Fed could prioritise supporting asset prices and financial markets; with inflation now at 7% the political pressure to get it under control is much stronger.
  • John’s thought is that the Fed’s response has demonstrated it takes inflation seriously, which could prevent that spiral of inflation expectations from feeding more inflation. Pre-pandemic secular trends—like technology and demographics—that had constrained inflation will likely reassert themselves. Both John and Sonal agree US interest rates will rise, but there’s uncertainty around the pace and whether the increases are already priced into the market.
  • Of particular note are their perspectives on two key issues: what happens to the excess savings that have built up during the pandemic, and how demographics plays into long-term inflation expectations.
  • John’s thought, based on one economic theory, is that historically when people are given one-time windfalls, they have saved them. Considering personal savings were already at low levels, he does not think this money would be spent, but would give consumers an opportunity to catch up on their longer-term savings goals. Sonal’s take is that we are already seeing consumers draw down excess savings, which remain largely liquid and available for households to spend, and this continued unwinding would be a tailwind for demand for at least the next several quarters.
  • John also points out that an aging US population would likely keep inflation muted over the long term, as has been seen in Japan. However, Sonal points out the case is not so clear-cut and that the experience in China and recent academic studies have shown that inflation actually increases as a population gets older and the workforce becomes smaller; the aging of the population stimulates demand more than supply.
  • With all this in mind, Sonal is continuing to position towards shorter duration and sectors that stand to benefit from the rate environment within portfolios, while John is focused on a bottom-up approach and diversification across the credit spectrum.

Franklin Templeton Key risks & Disclaimers:

Important Legal Information

This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice.

The views expressed are those of the investment manager and the comments, opinions and analyses are rendered as of publication date and may change without notice. The information provided in this material is not intended as a complete analysis of every material fact regarding any country, region or market.

Data from third party sources may have been used in the preparation of this material and Franklin Templeton (“FT”) has not independently verified, validated or audited such data. FT accepts no liability whatsoever for any loss arising from use of this information and reliance upon the comments, opinions and analyses in the material is at the sole discretion of the user.

Products, services and information may not be available in all jurisdictions and are offered outside the U.S. by other FT affiliates and/or their distributors as local laws and regulation permits. Please consult your own professional adviser or Franklin Templeton institutional contact for further information on availability of products and services in your jurisdiction.

Issued in the U.S. by Franklin Templeton Distributors, Inc., One Franklin Parkway, San Mateo, California 94403-1906, (800) DIAL BEN/342-5236, franklintempleton.com—Franklin Templeton Distributors, Inc. is the principal distributor of Franklin Templeton’s U.S. registered products, which are not FDIC insured; may lose value; and are not bank guaranteed and are available only in jurisdictions where an offer or solicitation of such products is permitted under applicable laws and regulation.

CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

What are the risks?

All investments involve risks, including possible loss of principal. The value of investments can go down as well as up, and investors may not get back the full amount invested. Past performance is not an indicator or a guarantee of future results. Diversification does not guarantee profit nor protect against risk of loss.

MeDirect Disclaimers:

This information has been accurately reproduced, as received from Franklin Templeton Investment Management Limited (FTIML). No information has been omitted which would render the reproduced information inaccurate or misleading. This information is being distributed by MeDirect Bank (Malta) plc to its customers. The information contained in this document is for general information purposes only and is not intended to provide legal or other professional advice nor does it commit MeDirect Bank (Malta) plc to any obligation whatsoever. The information available in this document is not intended to be a suggestion, recommendation or solicitation to buy, hold or sell, any securities and is not guaranteed as to accuracy or completeness.

The financial instruments discussed in the document may not be suitable for all investors and investors must make their own informed decisions and seek their own advice regarding the appropriateness of investing in financial instruments or implementing strategies discussed herein.

If you invest in this product you may lose some or all of the money you invest. The value of your investment may go down as well as up. A commission or sales fee may be charged at the time of the initial purchase for an investment. Any income you get from this investment may go down as well as up. This product may be affected by changes in currency exchange rate movements thereby affecting your investment return therefrom. The performance figures quoted refer to the past and past performance is not a guarantee of future performance or a reliable guide to future performance. Any decision to invest in a mutual fund should always be based upon the details contained in the Prospectus and Key Investor Information Document (KIID), which may be obtained from MeDirect Bank (Malta) plc.


We strive to ensure a streamlined account opening process, via a structured and clear set of requirements and personalised assistance during the initial communication stages. If you are interested in opening a corporate account with MeDirect, please complete an Account Opening Information Questionnaire and send it to corporate@medirect.com.mt.

For a comprehensive list of documentation required to open a corporate account please contact us by email at corporate@medirect.com.mt or by phone on (+356) 2557 4444.