Discovery Capital 200+ September 2017

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.