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My #1 structured product pick for February 2018

by , 31 January 2018
My #1 structured product pick for February 2018
As we enter 2018, many people are looking to diversify their portfolios.

Normally this would be an ideal time to invest offshore, but unfortunately offshore markets are at record highs. So it's difficult to find any value.

At the same time, staying in cash is not viable with global inflation edging up slowly.

So how can you diversify offshore without putting too much of your money at risk?
Luckily I’ve found a structured product that…
  1. Allows you to invest offshore
  2. Gives you total capital protection with market returns
Let me share more details about this attractive investment… 
Five fantastic reasons to invest in this structured product
#1: Invest in Eurostoxx50
The Euro Stoxx 50 is the only major international index that still offers value for money.
Its Relative Strength Index isn’t in overbought territory and economic conditions are improving across the region. The index is currently trading at about 2x book value, much cheaper than the 3.5x of the S&P.
#2: Your capital is guaranteed
Your investment is entirely protected, even after paying all costs.
This means if you put in R1 Million in, you will get at least R1 million out. The guarantee is provided by a bank with a credit rating above that of the South African Government.  
#3:  80% return if the Euro Stoxx 50 does not fall and uncapped upside
It the EuroStoxx 50 index falls, you will get all your money back.
If it remains flat or is positive, you will get a return of at least 80%!
In addition, your return is uncapped. Meaning that if the Euro Stoxx 50 were to increase above 80%, you will get all the upside.
#4: No hidden fees and costs -  All returns are after fees
Your returns and guarantees are after fees. The product has already accounted for costs in its design.
#5: 12% tax rate
Your investment is placed within a tax efficient wrapper that reduces your tax rate on your profits to just 12%. 
Tax efficiency is key for profitable investing. South Africa has some of the highest taxes in the world, with a current maximum income tax rate of 45%.
By cutting taxes to just 12%, you get to keep 88% of your profits.
You have to hurry if you want to invest
Please note that as this is a structured product, it’s only available for a limited time.
In addition, there’s a cap on investments. This product will stop taking new investments when it hits R750 million. Although it may seem like a large number, the product we did in December had a limit of R1 billion. The final traded amount on that one was R 1.24 billion.
To discover more about this product and how you can invest in it, please email viv@randswiss.com.
Viv Govender,
Portfolio Manager, Rand Swiss.

My #1 structured product pick for February 2018
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