FANews
FANews
RELATED CATEGORIES

Discovery Capital 200+ September 2017

20 September 2017 Discovery

In times of low-growth and market volatility, investors seek alternative opportunities for investing. Structured products such as the Discovery Capital 200+ are designed to cater for investors’ needs during these times. Available for investment for a limited period, this product offers unlimited investment returns as well as capital protection in bear markets.

Some of the product’s features include:

• If a global portfolio return of US and European equities is positive at the end of five years, an investor will receive a 100% return on their investment, before the deduction of fees*. This includes flat performance (if markets move sideways), or even if there is very limited positive performance.

• If the Discovery Capital 200+ global portfolio return is higher than 100% before the deduction of fees*, investors will receive all the additional upside return as well.

• There is also conditional downside protection*. Should the global portfolio provide a negative return at the end of five years, 100% capital protection is provided for any falls in the global portfolio of up to 40%. So, if an investor invested R1 million and the portfolio return is negative 40%, the investor receives back the R1 million original investment (before the deduction of fees*). However, should the portfolio fall more than 40%, the investor would be exposed to the full downturn in the portfolio.

Craig Sher, head of product and development at Discovery Invest, says there is no currency risk and if the rand weakens or strengthens over the five-year period, this does not impact on the final return of the Discovery Capital 200+.

Investments are made as a once-off lump sum, with a minimum investment of R100 000, and the product offer closes on 22 September 2017 or earlier if capacity runs out. Sher explains that for all benefits, protection and enhancements to apply, investors must remain fully invested for the five-year period. “However, we acknowledge that personal circumstances can change, and should an investor need to withdraw their funds prematurely, they would receive back the market value of the underlying instruments at that particular time,” he concludes.

Quick Polls

QUESTION

The shocking crime and motor vehicle accident statistics shared during a recent SHA presentation suggests that group personal accident and personal accident cover are a no-brainer. Do you agree?

ANSWER

Yes
No
Not sure
fanews magazine
FAnews April 2024 Get the latest issue of FAnews

This month's headlines

FAIS Ombud lashes broker for multiple compliance blunders
TCF… a regulatory misfit initiative?
The impact of NHI on medical malpractice insurance
Fixed versus variable: can you have your cake and eat it too?
The future world of work
Subscribe now