Investec Wealth Accelerator

[DieWerner]

I only just spotted this today:

https://www.investec.co.za/products-and-services/investing/structured-products/equity-index-structured-products/usd-wealth-accelerator.html

 

Has anyone looked into this?

 

From their documents:

"At the maturity date, the investor received 2 times the growth of the Index to a cap of 27.5% in US Dollars.

For example, if the Index has risen by 20% the Investor will receive a return of (2x 20%) = 40%.

However, as this investment return is measured in USD, if the Rand has depreciated by 10% from say R13.50 to R14.85, the Investor receives the geared return of 40% converted back into Rand at R14.85 for a 44% total return.

Similarly, if the Rand has appreciated by 10%, the return will be 36.00%.

This is a JSE listed instrument and as such, the Investor will receive payment of this return in Rands. "

 

Summary of offering

• A 3.5-year growth investment linked to the performance of the S&P 500 Index
  
• 2 times geared exposure to the growth in the Index capped at 55% in in USD
  
• 100% downside protected at maturity in Rands
  
• Minimum investment of R100 000
  
• Daily liquidity provided on the JSE
  

The S&P 500 has only gained 2.2% Year to date, but if you look from 11th Feb to today it gained 14.21%. Meaning 28.42% through the Investec fund (if you were lucky enough to buy in the slump in February...). what will it look like in 3.5 years?

[padjakkels]

First time that I see this.

 

But it looks good.

 

Term: 3.5 years

Minimum amount: R100k

Capital guaranteed

[Sebulba]

Wow, never seen this before. Is there any downside? Perhaps if there is no growth you will only be out of pocket for the inflation loss.

[Bandit]

I hate selective dates like this. It means nothing. DIVTRX gained 14.68% from 1 Jan to today, but from 21 Jan to 20 Apr it 31.82%.... imagine what it could be in 3.5 years...

[DieWerner]

I hate selective dates like this. It means nothing. DIVTRX gained 14.68% from 1 Jan to today, but from 21 Jan to 20 Apr it 31.82%.... imagine what it could be in 3.5 years...

 

I know, I know, so do I.

I only mentioned it for perspective, if you were lucky enough to buy in the start of the upturn in February...

[Platinum Wealth]

We looked into this as a possible fund for the investment club due to the minimum buy in.