Liberty is offering its Structured Global Performer Portfolio for 2023

Published Date: 10/30/2023
Source: Liberty Group Limited

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Luvhani Makoni, Senior Specialist for Retail Investment Propositions

Liberty is opening up a further tranche of its popular Structured Global Performer portfolio for investors looking to gain yield from global markets with a measure of capital protection in place while being shielded from currency swings.

 

This year's offering is looking to build upon the success of previous tranches of its Structured Global Performer which have been launched every year since 2021.

 

The portfolio is also designed for those who require access to a wrapped investment solution for estate planning purposes, something Liberty's investment team specialises in.

 

Currency fluctuations have been on many investor's minds these past few years, with the Rand making some dramatic swings at times as it continues to be impacted by the risk averse global financial market environment, particularly amid concerns over growth prospects in China, which is South Africa's largest global trading partner.

 

The invested capital will remain rand denominated, so currency fluctuations will not affect the lump sum invested.

 

"Investors have warmed up to the past offerings as they provided a high degree of certainty both in terms of capital protection and positive return. They were positioned as a good alternative to a traditional Guarantee Capital Bond for the investor who is willing to take on a bit more risk for a higher yield with target returns quoted net of fees and taxes," says Luvhani Makoni, Senior Specialist for Retail Investment Propositions.

 

Two portfolios are on offer - one that focuses on the powerhouse economies of Europe and the US - while the other focuses on global companies with Environmental, Social and Governance (ESG) credentials for the investor who seeks a more sustainable option for their money.

 

"We're maintaining the underlying basket of 50% S&P 500 and 50% Euro Stoxx 50 for the Liberty Structured Global Performer V3 portfolio. While for the Liberty Structured Global Performer ESG V3 portfolio, we're using the MSCI Global Diversified ESG 100 Decrement 5% index. We feel these two options will resonate with those looking for a return balanced by protections using well-known indexes."

 

Overall, this carefully weighted balance of some of the top performing global companies ensures that local investors will gain exposure to a wider selection of sectors.

 

These latest tranches will be available to individuals, companies and trusts with natural person beneficiaries on Liberty's Evolve Investment Plan and only available to companies on the Evolve Investment Plan (Sinking Fund)

 

In terms of structuring, for the Liberty Structured Global Performer V3 portfolio, investors are offered 100% capital protection where the change in the value of the basket is zero or negative at the maturity date (the amount that was transferred into the structured portfolio will be returned).

 

If the change in the value of the basket is positive at maturity date (after adjusting for tax), investors will receive a minimum return of 8.35%* p.a. (companies: 7.56%* p.a.). If the change in the value of the basket is greater than 8.35%* p.a. (companies: 7.56%* p.a.) at maturity date, after adjusting for tax, investors will receive all the growth. 

 

For the Liberty Structured Global Performer ESG V3 portfolio, if the change in the value of the basket is positive at maturity date (after adjusting for tax), investors will receive a minimum return of 13.18%* p.a. (companies: 12.02%* p.a.). If the change in the value of the basket is greater than 13.18%* p.a. (companies: 12.02%* p.a.) at maturity date (after adjusting for tax), investors will receive all the growth. Where there is no change in the value of the basket or where the value of the basket decreases by no more than 30% at maturity date, the amount that was transferred into the structured portfolio will be returned. If the change in the value of the basket decreases by more than 30% at the maturity date, the 100% capital guarantee falls away and investors will receive the value of their investment at maturity.

 

Returns are net of tax and any fees that may apply and are denominated in Rands.

 

* This is the return Liberty aims to achieve but it will be subject to market conditions at Strike Date. Liberty will inform Investors of the final return % one week after Strike Date.