New USD product to accelerate wealth creation with 100 % capital protection
Brian McMillan of Investec Structured Products.
The US economy is currently in the spotlight as stronger than expected growth numbers were released ahead of the Fed’s rate decision. According to Bloomberg, the US Economy accelerated in the second quarter after a healthier start to the year than previously estimated. At an annualised Q2 GDP growth of *3.7%, the US economy displayed general strength with consumers, businesses and government each spending and investing more than expected.
In our view this is positive for the US outlook, and coincides with the launch of Investec’s new S&P 500 Index product - the Investec USD Wealth Accelerator - which provides the Investor with US Dollar upside referencing the growth of the S&P500 Index as well as 100% Rand capital protection at maturity.
The returns from the USD Wealth Accelerator is enhanced, providing Investors with two times the growth in the S&P 500 Index to a cap of 27.5%, thus giving a potential maximum return of 55% in US Dollars.
Should the Index have a negative return over the 3.5-year investment period, the Investor will not suffer a loss, as the investment is 100% Capital Protected in Rands.
“The US remains a key market for continued growth when compared with emerging markets at present. With sound fundamentals, a high GDP per capita and the right intent shown by policymakers, Dollar strength, in our view looks likely to continue in the months ahead” says Brian McMillan of Investec Structured Products.
The USD Wealth Accelerator is credit linked and accordingly the Investor takes credit risk on both Investec Bank Limited, as Issuer, and FirstRand Bank Limited (“FBL”), as the Credit Linked Reference Entity (“Reference Entity”).
Applications for the Wealth Accelerator are open for investments until 2 November 2015 and the product has a start date of 14 September 2015. The minimum investment is R100 000.
Visit www.investec.co.za/accelerator for more information about Investec’s USD Wealth Accelerator.
