With ever increasing numbers of local investors seeking attractive returns offshore, Liberty has designed a portfolio that takes advantage of these international markets while simplifying your investment options and managing volatility.
It's no secret that overseas markets have been outperforming their local equivalents by a significant margin these past few years.
The US S&P 500 index of top American companies has shown consistent growth lead by innovative tech companies like Apple and Facebook. Meanwhile in Europe companies like Airbus and SAP have been creating regular profits for their shareholders.
Imagine having a managed opportunity to invest your money in companies like this.
Liberty's has recently introduced a limited time opportunity, the Global Limited Edition V1 portfolio, which is a structured portfolio offered on the Evolve Investment Plan, where individuals, companies and trusts can invest their money for the next 5 years. And it comes with a guaranteed safety net to hedge your money against volatility.
"The portfolio's underlying basket is weighted 50% to the United States’ S&P 500 and 50% to the EuroStoxx 50 capital indices. It is Rand-based so the return earned will be unaffected by any currency movements," says Henk Appelo, Investment Product Development Actuary at Liberty.
This broad exposure to some of the largest companies in European and US markets puts your investment in line to benefit from a variety of different market sectors and globally competitive businesses.
“Diversifying your investment brings an attractive set of opportunities because you get exposure to different regions and economies,” Appelo says.
If the return earned at the end of the five-year term is positive the portfolio is designed to give the investor a return that is equal to the change in the underlying basket times a growth multiplier of at least 1.5* for individuals, capped at 30% (or 7.7% p.a.[returns translated into annual returns]) for individuals. *The growth multiplier will be determined and confirmed at Strike Date. The returns earned are unaffected by any currency movements, are net of tax and fees and are denominated in Rands.
The other advantage is that if the change in the value of the basket is zero or negative at the end of the five-year term, the amount initially invested in the structured portfolio will be returned. So, your risk is managed.
The returns of the V1 portfolio are determined with reference to instrument/s issued by one or more banks or entities affiliated with a bank. To understand the credit risk on the portfolio please speak to your Financial Adviser or Broker.
This portfolio is available to individuals, companies and trusts on the Evolve Investment Plan. The minimum investment is R250,000.
“We know everyone’s financial situation is unique, and we recommend that anyone who wants to diversify their portfolio do so with the help of a Liberty Financial Adviser. There are many choices out there, and when it comes to these sorts of investments, you don’t have to make these decisions alone; this is where the value of advice becomes critical," says Appelo
The summary information contained in this article does not constitute advice by Liberty. Any legal, technical, or product information contained in this document is subject to change from time to time. If there are any discrepancies between the article and the contractual terms and conditions (inclusive of the information sheet), the contractual terms and conditions (inclusive of the information sheet) will prevail. Past performance cannot be relied on as an indication of future performance. Investment performance will depend on the growth in the underlying assets, which will be influenced by prevailing market conditions. Any recommendations made by a financial adviser or broker must take into consideration your specific needs and unique circumstances. Liberty Group Ltd is the licensed Insurer of the Evolve Investment Plan and an Authorised Financial Services Provider (no. 2409). Terms and Conditions apply.
For more details about benefits, definitions, guarantees, fees, tax, limitations, charges, contributions or other conditions and associated risks, please speak to a Liberty Financial Adviser or your Broker.
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