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Accessing buoyant overseas markets in rands with capital protection

Accessing buoyant overseas markets in rands with capital protection
08-05-24 / Duty Editor

Accessing buoyant overseas markets in rands with capital protection

Johannesburg - Liberty has annunced that it is offering clients an opportunity to get involved in a structured offshore investment offering, that seeks to take advantage of buoyant global markets.

The Group said its Structured Global Performer V4 and ESG V4 portfolios open for contributions from 13 May 2024 until 12 July 2024. It added that one must think of these as a gateway to offshore markets that provide access to different geographies, companies and sectors. "Wrapped within an endowment wrapper, specifically the Evolve Investment Plan (including the sinking fund) and denominated in Rands," explianed Liberty, "the Global Performer also provides investors with a shield against the uncertainties of currency fluctuations".

Liberty said two portfolios are on offer, with the first focusing on the buoyant economies of Europe and the US - while the second focuses on global companies with an Environmental, Social and Governance (ESG) outlook, specifically for the investor who is looking for a more conscience led approach to allocating their money.

"As with previous tranches, Liberty is maintaining the underlying basket of 50% S&P 500 and 50% Euro Stoxx 50 for the Liberty Structured Global Performer V4 portfolio. While for the Liberty Structured Global Performer ESG V4 portfolio, we are using the MSCI Global Diversified ESG 100 Decrement 5% index. Both these portfolios will offer 30% downside protection meaning that the investors capital (in other words the total investment amount that was transferred into the structured portfolio) is protected if the return of the above-mentioned indices falls by less than 30% at the maturity date.

"In terms of structuring, if the change in the value of the basket is positive at maturity date (after adjusting for tax), investors will receive a minimum return of 9.25%* p.a. (companies: 8.38%* p.a.) for the Liberty Structured Global Performer V4 and 13.05%* p.a. (companies: 11.89%* p.a.) for the ESG V4 portfolio with returns quoted net of fees and taxes. Where the change in the basket exceeds the minimum returns, investors receive all the growth (adjusted for tax), this applies for the Structured Global Performer V4 and the ESG V4 portfolios," the Group explained.

For both of the Structured Portfolios, if the change in the value of the basket decreases by more than 30% at the Maturity Date, investors are exposed to the performance of the basket and will receive the remaining investment value at Maturity Date.

"We feel these two options will offer a clear choice for those looking for a level of certainty as these options offer a degree of capital protection using proven indexes that package together some of the top performing global companies balanced by the attractive upside potential," says Luvhani Makoni - Lead Specialist: Investment Propositions at Standard Bank..

Allocation enhancements are also available for new investments as well as switches for investors who already have an Evolve Investment Plan (including Sinking Fund).

This latest tranche is not limited to individual investors but extends its reach to companies and trusts.

Liberty is a Licensed Life Insurer of the Evolve Investment Plan and Evolve Investment Plan (Sinking Fund). Terms and Conditions, Risks and Limitations apply.

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