An investment offering exposure to offshore and protection against volatility

By: Liberty

Liberty’s Global Limited Edition V1 (“portfolio”), is offered on the Evolve Investment Plan, which is designed to allow individuals, companies and trusts to participate in overseas indices, while being protected against rapidly changing adverse market conditions. 

This is a response to the need for an investment vehicle that can help shield investors from market volatility, something that has become increasingly common. 

“This portfolio gives investors the flexibility to obtain returns based on the movement of offshore indices and is an ideal investment opportunity for those looking to diversify their investments,” says Henk Appelo, Liberty Investment Product Developer.

“The Global Limited Edition V1 is a structured portfolio, which provides a return based on the change in the value of the underlying basket of capital indices over a five-year term,” he says. 

The portfolio’s underlying basket is weighted 50% to the S&P 500 and 50% to the EuroStoxx 50 capital indices. The returns are Rand-based.

If the return earned at the end of the five-year term is positive the portfolio is designed to give the investor a return that is equal to the change in the underlying basket times a growth multiplier of at least 1.5*  for individuals, capped at 30% (or 7.7% p.a.[returns translated into annual returns]) for individuals. *The growth multiplier will be determined and confirmed at Strike Date. The returns earned are unaffected by any currency movements, are net of tax and fees and are denominated in Rands. 

The other advantage is that if the change in the value of the basket is zero or negative at the end of the five-year term, the amount initially invested in the structured portfolio will be returned. 

The returns of the V1 portfolio are determined with reference to instrument/s issued by one or more banks or entities affiliated with a bank. To understand the credit risk on the portfolio please speak to investment specialist. 

This portfolio is available to individuals, companies and trusts on the Evolve Investment Plan. The minimum investment is R250,000. 

This limited offer is available until Friday, 4 December 2020.

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