FNB launches capital-protected structured investment solutions for individual clients
Johannesburg - FNB has launched a suite of structured investment solutions that is designed to effectively help FNB and RMB Private Bank clients achieve their investment goals. Structured solutions are traditionally offered to large institutional investors, however FNB is making these solutions available to individual clients, offering them an exciting new way to achieve a well-rounded, risk-managed portfolio with solid growth potential.
Sizwe Nxedlana, CEO of FNB Private Segment explains that “The expansion of our investment offering is based on our dedication to helping clients accomplish their financial goals through sound financial decisions. In line with our goal-based philosophy, we are now offering our individual clients more opportunities to invest their money in a way that balances the potential for competitive returns with effective protection of capital. Our view is that structured investment products are not just an option; they are a necessity for balanced portfolio for individuals and institutional investors alike.”
The sentiment is echoed by Bheki Mkhize, CEO of FNB Wealth Investments, saying, “We are democratisating access to these solutions by bringing them within the grasp of everyday investors with their core benefits. Structured solutions provide a unique blend of security and opportunity, and they are especially valuable in times like these, when investors are seeking investment options where they are not compelled to sacrifice returns to achieve the risk protection they desire.”
FNB’s new structured solutions include:
- FNB 100 CapitalPreserver Participation 1 - A rand-structured, three-year investment that provides 100% capital protection at maturity and exposure to developed markets through the MSCI World Index. The solution aims for a return equal to the growth of the MSCI World Index over the investment period, plus a participation factor of 110% quoted to investors at the time of investment. For instance, if an investor gets a participation factor of 110% and the MSCI World Index increases by 120% over three years, their total return would be 132%. If the index performs poorly or remains unchanged, the capital guarantee ensures that you get 100% of your investment back at the end of the three years.
- FNB 100 CapitalPreserver Autocall 1 - A dollar-denominated solution in which investors can invest in dollars and receive dollar-denominated returns. It is designed to protect 100% of invested capital over a three- to five-year period, while exposing investors to the same MSCI World Index and aiming for an annual return between 5% and 6%. The actual return is determined upon completion of the investment. This is intended for investors seeking a higher return than a dollar bank deposit.
- FNB 80 CapitalPreserver Autocall 1 - Guarantees 80% of the invested capital over a three- to five-year investment term and seeks a return between 7% and 8% per year over that time frame. The actual return will be determined at the time of investment. It also provides exposure to the highly regarded MSCI World Index. Both the FNB 80 and 100 CapitalPreserver Autocall solutions provide investors with rand hedging over the investment terms.
For FNB 100 CapitalPreserver Participation 1, investors may use their Share trading account, or contact their Wealth Manager or Portfolio Manager. An FNB Portfolio or Wealth Manager will guide prospective investors through the application procedure for the FNB 100 and 80 CapitalPreserver Autocall.
"All three of these solutions provide investors with access to leading global companies and sectors without the additional costs and complexities of investing individual asset classes directly. The capital guarantees mean they don’t have to lose any sleep over the possibility of high levels of market volatility eroding the value of the money they invested," concludes Mkhize.