In another move to provide diverse investment opportunities for South African investors, FNB released the third tranche of its widely acclaimed Structured Products. Designed to deliver robust returns while safeguarding capital, these innovative investment solutions are a powerful tool for investors seeking to diversify their portfolios in today’s volatile economic environment.
Samukelo Zwane, Head of Product at FNB Wealth and Investments says, “Structured products, once the exclusive domain of institutional investors due to their prohibitive costs and high minimum investments, have evolved dramatically in recent years. Today’s structured products offer individual investors the chance to achieve their financial goals by adding these cleverly designed products to their portfolios, and thereby benefit from the tailored risk-return profiles, capital protection and exposure to international markets that they offer.”
The two FNB Structured Products opened for investment are the FNB 100 CapitalPreserver Participation 3 (ZAR) and FNB CapitalPreserver Autocall 3 (USD) solutions. Both investments provide investors with compelling opportunities to gain from global market growth while minimising risk. These products have been carefully designed to meet the needs of today’s investors who are looking for security, transparency and potentially uncapped returns,” says Zwane.
- FNB 100 CapitalPreserver Participation 3 is a South African Rand-denominated investment that offers investors the opportunity to participate in the growth of the EuroStoxx50 Index with a 200% participation rate. This participation rate means that if the index grows over the five-year term, investors will enjoy a return of double that of the index’s performance.
With 100% capital protection at maturity, this product also ensures that investors’ initial investments are safeguarded, making it an attractive option for those looking to benefit from the European market growth without the associated risk. And since it is rand denominated, investors will also benefit from any local currency depreciation over the term of their investment.
- FNB CapitalPreserver Autocall 3 is a US dollar-denominated investmentdesigned for investors seeking exposure to the proven resilience of the Bloomberg Luxury Series 1 Index. If the index remains flat or rises at pre-specified observation dates (year 3, 4 or 5), the investment will automatically mature, returning the investor’s capital along with a return of 11% to 12% per annum. And if the index falls, the product includes a 30% drawdown buffer, ensuring that as long as the index doesn’t drop by more than 30%, investors will still receive their full capital back at maturity.
Zwane points out that, in addition to the security and potential for exceptional returns that these structured products offer, their steadily growing popularity among retail investors is also driven by their transparent risk profiles, capital guarantees, and the ease with which they allow investors to access global markets.
“The success of the second tranche of FNB Structured Products, which was oversubscribed by 50%, is evidence of the increasing demand for these innovative financial instruments, and FNB expects an even stronger response to this third tranche, as more investors recognise the value that structured products bring to a balanced portfolio,” Says Zwane.
Investors looking to seize the opportunities presented by the third tranche can do so through FNB Stockbroking and Portfolio Management. With minimum investments of R20 000 and $6 000 respectively, the FNB 100 CapitalPreserver Participation 3 and for the FNB CapitalPreserver Autocall 3 solutions are accessible to a broad range of investors.
“The FNB Structured Products embody FNB’s commitment to making world-class investment instruments available to all South Africans, and by combining capital protection with exposure to international markets, tranche three is another FNB investment value proposition that we believe will greatly benefit the avid investor’s portfolio and be hard to match within the market,” concluded Zwane.
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