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.

Having covered the Investec USD S&P 500 Autocall on a previous podcast (Episode 19 of Ghost Stories), we now move on to the Optimal Investment Growth Basket Limited promoted by Investec. This product offers a maximum annualised return in USD of 9.8% per annum over five years, with 100% capital protection at maturity in US dollars. The minimum investment amount is $12,000 or £10,500. This is a limited offer that closes on 24 November 2023. T’s and C’s apply and full details can be found on the Investec website at this link and the brochure can be found here.

To unpack this opportunity in detail, Japie Lubbe joined The Finance Ghost on this episode of Ghost Stories.

Topics covered included:

• The importance of global diversification and exposure for South African investors;
• The strategy of tracking a basket of global indices as opposed to a single index;
• The methodology used in this instrument to achieve the potential return profile for investors;
• The look-through credit exposure in the structure;
• Liquidity in the structure; and
• How to invest in the product.