July Structured Product Pick: 100% capital protection, offshore returns and uncapped upside… need I say more?
Regular readers will know I'm quite a fan of structured products.
The combination for capital protection and market related returns are very attractive in the current economic environment. Especially with international markets posting new all-time highs while downside risks to your portfolio seem to grow daily.
Over the last year or so, I have always been able to find one or two products each month that are extremely attractive but, I must admit, July has been a challenge!
Even though there were a number of products launched, none were exciting enough for me to recommend without some serious reservations. Even the much anticipate sequel to last month's structured product pick, came with slightly worse terms. In fact, the issuer cut the return by 4%.
I was almost ready to throw in the towel…
But just when it looked like I wouldn’t be able to send you a pick this month, we have a last-minute break away try, an eagle on the 18th, a goal in injury time!
In the final week of July, comes the launch of an offshore, 3.5 year, binary product backed by First National Bank. So, without further fanfare, here is my recommended structured product for July.
It offers the following features:
An investment into the Euro Stoxx 50.
Your capital is 100% protect by a guarantee from First National Bank.
An immediate 50% US dollar return if the Euro Stoxx 50 is positive even 0.01%.
If the Euro Stoxx 50 is up over 50%, you will get all of the upside.
No need to use your offshore allowance.
This is a great product for many reasons, but what I find to be incredible, is that you almost never find a product that gives you total capital protection, uncapped US dollar returns and gearing. In addition, it is wrapped up in a tax efficient package.
As if that wasn’t enough, you can access it without using your offshore allowances.
You even have the ability to exit early if needed
There is just one catch. As with all structured products, it is only available for a limited time. In this case you must have completed your application by the first week of August if you want to get in!
If you’re interested in finding out more about this product, you can email me on email@example.com
, or talk to a decent financial advisor.
Until next time,
Viv Govender, Wealth Manager
P.S: I say decent financial advisor because the underlying instruments are often not well understood by regular financial planners. If you need the underlying instruments explained, feel free to contact me, I will be happy to go through the underlying mechanics of the product.