August 29, 2023

Ghost Stories Ep19: The Investec USD S&P 500 Autocall

28 minutes

Structured products have come a long way. From a specialised, exotic investment tool, they are now mainstream, and financial advisers are now more comfortable about investing in them on behalf of clients.

A perfect example is the Investec USD S&P 500 Autocall, where investors can earn a potential return of up to 8.4% p.a. if the index ends flat or positive on one of the call dates in year 3, 4 or 5. Provided the index does not end below 70% of the initial index level, there is full capital protection in USD. The minimum investment amount is R100,000 and there is a maximum 5-year term. This is a limited offer that closes on 16 October 2023. T’s and C’s apply and full details can be found on the Investec website at this link.

To explain structured products in general and the Investec USD S&P 500 Autocall as the latest offering, Brian McMillan joined The Finance Ghost on this episode of Ghost Stories.

Topics covered included:

The other side of options: using options as hedging instruments rather than tools of speculation;

A history of structured products in the South African market;

How to invest in Investec structured products through an independent financial advisor or broker;

An overview of the key terms of the latest structured product, including the downside protection calculation and the upside potential;

Liquidity in this structure; and

The versatility of the product in terms of types of investors and portfolio strategies.

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