STEPHEN CRANSTON: The cost of a guarantee
If you consider an average return of 7.7% a year enticing, it’s the one for you. But I’m sure you can do better
26 November 2020 - 05:00
There is always demand from some investors for structured products. These provide a hard guarantee that clients will not lose money after five years in the structure, at least in nominal terms. But the cost of this is that if there is a boom in the global stock markets, only a modest part of the return is passed on to clients.
If you hurry, you can get into the Liberty Global Edition 6, which closes to new subscriptions on December 4. For most of us it will call for more than pocket change, as the minimum subscription is R250,000 and it is not supposed to make up more than about 10% of total personal investments...
BL Premium
This article is reserved for our subscribers.
A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.
Already subscribed? Simply sign in below.
Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now