Launching the Investec Top40 Accelerator

Offering geared upside exposure linked to the performance of the FTSE/JSE Top40 Index.

The Investec Top40 Accelerator (“the product / Accelerator”) presents an opportunity for investors to invest in the performance of the FTSE/JSE Top40 Index (“Index”) in a geared fashion whilst limiting the downside risk. The new product, which is open for subscription until 17 September 2014, has a three and a half year term and is offered for a minimum investment value of R100,000.

Brian McMillan of Investec Structured Products explains: “With interest rates at their current lows investors appreciate the need to include equity investments in their portfolios. Demand for investments with a level of capital protection is also high. The FTSE/JSE Top40 Index has consistently outperformed inflation over the last 20 years and provides an effective Rand hedge investment. The Accelerator is therefore structured to provide a simple and easy way to access the Index with a geared potential upside and limited downside.”

Top40 Accelerator return at expiry

The product is structured in such a way that any gains in the Index will be multiplied one and a half times to a maximum capped return of 60% at maturity. The investor will also only suffer any losses if the Index falls by more than 20% over the period of the investment. For example, if the final Index level is down 25% at maturity then the investor will incur a loss of 5%, as the first 20% is protected. At maturity, on 22 March 2018, if the Index has remained flat or fallen by less than 20% the Top40 Accelerator will pay no growth and the investor will receive their full initial investment.

According to McMillan: “The Accelerator is well suited to bullish investors looking for an investment that offers geared upside and limited potential downside.”

While the investment is suitable for those who expect the Top40 Index will be above current levels over the next three and a half years, it is also an effective means to diversify local risk.

As investors will not receive dividends during the term, the investment is designed for those not looking for regular income but rather those willing to hold to maturity.

“Increasingly investors are looking to protect the gains made over the last few years in the index and the Top40 Accelerator not only provides a partial means to do so but also allows the investor to remain invested in some of South Africa’s most successful companies through the Top40 Index,” adds McMillan.

Visit www.investec.co.za/growth for more information about Investec’s Growth Structured Products.