OUR PROCESS

INVESTMENT OPPORTUNITIES

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Opportunity 1

CCM USD Notice Deposit

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Opportunity 2

Corporate Cash Manager MoneyFund

Britannic Opportunities Limited

Opportunity 3

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CCM USD NOTICE DEPOSIT PRODUCT INFORMATION

OUT OF THE ORDINARY OFFSHORE INVESTING

Figures show that 54% of outflows are linked to investment offshore. But advisers and clients face significant currency risk when moving funds abroad to invest. With the Foreign Currency Account, advisers can build up a cash balance in US dollars, giving them time to identify and assess investment opportunities.

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Here’s an in-depth discussion about Investec’s foreign currency account.

Opportunity 2

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CORPORATE CASH MANAGER

PWM Wealth Management (PTY) Limited has partnered with Investec to offer you cash solutions that can be tailored to meet your savings needs. Using Investec’s Corporate Cash Manager (CCM), an innovative and secure online banking system, we ensure your money continuously works hard for you while giving you access and flexibility at highly competitive rates.

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Disclaimer

This is not a prospectus, nor does it constitute an offer to the public in respect of the Shares of Optimal Investment Growth Basket. The information contained in this communication is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. As product supplier, Investec is not in a position to have regard to the specific investment objectives, financial situation or particular needs of any specific recipient. The material is based upon information that we consider to be reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. All illustrations, forecasts or hypothetical data are for illustrative purposes only and are not guaranteed. Investec accepts no liability whatsoever for any loss or damage of any kind arising out of the use of all or any part of this communication. Investec does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential clients. Parties are therefore responsible for compliance with applicable local laws and regulations. Prospective Investors should be fully aware of the risks involved in trading investment related products. Returns and benefits are dependent on the performance of underlying assets and other variable market factors and are not guaranteed.

This product is not sponsored, endorsed, sold, or promoted by the Index or indices, as specified herein, or the relevant Index sponsor, being the corporation or other entity that (a) is responsible for setting and reviewing the rules and procedures and the methods of calculation and adjustments, if any, related to the relevant Index and (b) announces (directly or through an agent) the level of the relevant Index on a regular basis. No Index sponsor makes any representation whatsoever, whether express or implied, either as to the results to be obtained from the use of the Index and/or the levels at which the Index stands at any particular time on any particular date or otherwise. No Index or Index sponsor shall be liable (whether in negligence or otherwise) to any person for any error in the Index and the Index Sponsor is under no obligation to advise any person of any error therein. No Index sponsor is making any representation whatsoever, whether express or implied, as to the advisability of purchasing or assuming any risk in connection with entering into any transaction in respect of this product. Neither Investec nor the investor shall have any liability to the other for any act or failure to act by the Index sponsor in connection with the calculation, adjustment or maintenance of the Index. Investec has no affiliation with or control over the Index or Index sponsor or any control over the computation, composition or dissemination of the indices. Although Investec will obtain information concerning the indices from publicly available sources it believes reliable, it will not independently verify this information. Accordingly, no representation, warranty or undertaking (express or implied) is made and no responsibility is accepted by Investec as to the accuracy, completeness and timeliness of information concerning the indices.


Corporate and Institutional Banking, a division of Investec Bank Limited. Reg. No. 1969/004763/06. An Authorised Financial Services Provider (FSP11750) and registered Credit Provider (NCRCP9). A member of the Investec Group.



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Opportunity 3

BRITANNIC OPPORTUNITIES LIMITED

INVEST IN THE BEST

Investec has designed an offering that provides you with 'preservation of your capital', a minimum return in bad times and double the market returns in good times over 3.8 years, all in US dollars. 


This payoff is neatly packaged in an offshore listed share (Britannic Opportunities Limited) which can be purchased as


*  Offshore allowances (or any SARB approved allowance)

*  Disclosed foreign assets

*  International assets held by non-South African investors

*  Foreign portfolio investment allowance (asset swap)

Japie Lubbe introduces the latest product from Investec Structured Products

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The investment is in shares (“Shares”) in a company called Britannic Opportunities Limited, registration number 57717 (‘the Company”), which is incorporated in Guernsey and listed on the Bermuda Stock Exchange.  The Company offers preservation of capital of the principal amount initially invested if held until maturity.

The Index value at maturity will be calculated as the simple average of the closing values of the Index on the same date in each month in the averaging period. The maximum averaging period will be 12 months; however, a 3-month period is targeted.

The investment is an investment in Shares of a company incorporated in Guernsey and listed on the Bermuda Stock Exchange.


The Principal Amount will be invested by the Company in


  • Subordinated debt instruments in of a debt issuer*1 that has a rating equal to or better than Investec Bank Limited. (*1 refer Company Prospectus). The Company will deposit the coupons received from the underlying debt instruments with Investec Bank Limited. These deposited amounts will accrue interest. The entire value will be paid to the Company after some 3.8 years in order to align with the first call date of the debt instruments.​​​​​​​
  • Equity option(s) issued by an international bank or entity(ies) in the group of an international bank (such bank or entity(ies) having a minimum international S&P A rating) to provide equity exposure.

The percentage of the Principal Amount invested in the debt instruments will be determined so that the amount received by the Company at the end of the investment period in USD, will be equal to at least 103% of the Principal Amount in USD or GBP equivalent, as applicable.


Assuming the basket starts at USD100 equivalent, below is an example of expected returns *2

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  • *2 For illustration purposes only
  • The above assumes that the upfront fee (if any) is already taken off the investment and the net amount (the Principal Amount) is invested which is assumed to be 100

A targeted basket of offshore indices, namely the, Eurostox50 – 30%, Nikkei 225 – 30% and S&P500 – 40%, or an alternative world index/s, or exchange traded funds with equity exposure as determined by the Investment Adviser)

The public offering results in minimising overall costs and the provision of efficient asset pricing.

The board of the Company is targeting a termination date after 3.8 years to align to the first call date on the subordinated debt instrument. The capital recognition of the subordinated debt instrument may reduce per annum after the first call date, making this instrument less attractive for the debt issuer as a regulatory capital instrument.


If a Call Option is not exercised by a Debt Issuer on the First Call Date of the Debt Instruments issued by it, then the Company will


  • as soon as possible after such First Call Date, declare and pay a dividend equal to the proceeds (if any) received by the Company from the Equity Linked Investment, less taxes (if any), provided that if more than one Debt Issuer does not exercise its Call Option then only one dividend will be paid by the Company in respect of the proceeds (if any) received by the Company from the Equity Linked Investment; and
  • thereafter declare and pay annual dividends equal the interest payable by such Debt Instrument(s), less costs, fees and taxes to be paid by the Company

The Shares may provide a Rand hedge for South African investors, if the Rand depreciates against the USD as the underlying debt instruments and equity linked options are in USD. If the Rand appreciates against the USD or GBP equivalent, as applicable, then the Investors bear such currency risk on maturity of the investment.

Indication of fair value for the Shares will be made available on the Administrator’s website.  Monthly overviews will also be provided on the website to show the performance of the offering  for each month from inception.


https://www.praxisifm.com/services/funds/investec-basket-information/

Risk factors are below and Investors should refer to the “Risk Factors” in the Company Prospectus, which is available upon request from the Investment Adviser to the Company or from the Administrator.


  • Significant price movements prior to the launch, making the targeted return unachievable and
  • therefore returning cash to Investors without interest
  • Tax and regulatory changes
  • Exchange rate risk
  • Credit risk on counterparties of the Company, in particular the providers of the principal protection
  • and equity options
  • Lack of liquidity in the Shares and
  • Adverse market movements on interim share valuations​​​​​​​


Risks associated with subordinated debt instruments


  • Structured products provide principal protection through the assumption of credit risk. They are intended for sophisticated investors who understand this risk and are willing to take it. In this case the credit risk is to Debt Issuer/s*1, and represents a claim which ranks behind all depositors and other senior creditors. Investors must be comfortable with this before investing in the product. (*1 refer Company Prospectus)
  • The Company’s claims for payment against the debt issuer will be subordinated to the claims of more senior creditors of the debt issuer, which means that the senior creditors will be paid first and the Company will only be paid by the debt issuer from what is available (if any) after such payments were made in full
  • On default by the debt issuer, the Company may only institute proceedings for the winding-up of the debt issuer (and/or prove a claim in any winding-up of the debt issuer) but take no other action in respect of that default
  • The debt instruments contain a provision to the effect that, at the option of the SARB/relevant regulator, such instruments must be written off, in part or in total, upon the occurrence of a trigger event determined by the relevant authority (the trigger event is the point at which the SARB/relevant regulator determine that the bank will become non-viable without intervention)
  • If the debt issuer does not exercise the call option in accordance with its terms, or if the SARB/relevant regulator does not grant permission to call, then the investment in the Shares will be for a maximum of 8.78 years

Investors will not have the right to redeem their Shares prior to the maturity date.  However should Investors wish to sell their Shares during the investment period

  1. the Administrator will facilitate a book-over of their Shares where it identifies a willing buyer. In order to assist this process an independent trust (‘the Trust”) (declared on 2 September 2009 in Guernsey known as The Basket Trust) has declared its willingness to purchase Shares (although the Trust is not obliged to do so); and
  2. if no buyer is identified, the Company, upon Directors approval, can arrange a potential early redemption of the Shares at a price either in GBP for A class, or USD for B class Shares, at which the Company can liquidate underlying assets. In the event of either of the above occurring, there is an early exit fee of 1.25% less any administration and applicable banking fees

In the event of death, Guernsey probate may need to be sought and the Administrator and the Investment Advisor to the Company may assist.

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The distributor may charge a once off upfront fee of up to 2% plus VAT on new Shares issued for either A class GBP or B class USD This will be deducted from the gross GBP or USD investment amount paid by each subscriber to the Company such that only the Principal Amount will be invested in Shares of the Company. An initial once off expense provision of some 0.50% of the Principal Amount will be set aside to cover the Company’s costs over the investment period and the Company will not invest this amount. Annual fees to be paid by the Company to service providers are in USD and will be as follows

Other than the upfront fees, there are expenses and fees described above which should not affect the potential investment return of the Shares. On the maturity of the investment, the Investor will receive the fullrealised fair market value of the Shares in the currency that it subscribed for. Share proceeds will not be subject to any settlement or de-registration fees on redemption at the maturity of the investment.​​​​​​​

The Company has a Guernsey tax exemption certificate.

The Company has the ability to pay dividends during the term.

Depending on Investors’ circumstances and their intentions when buying the Shares, Investors who hold the Shares to maturity and then sell them to the Trust prior to redemption may be taxed subject to the tax laws and revenue practice prevailing at the time.

Taxation of individual shareholders will depend on personal circumstances and they should seek independent tax advice. A change in tax regulations may affect the taxation of Investors.​​​​​​​

Minimum investment of GBP14,000 for A Class GPB Shares or USD18,000 for B Class USD Shares.


Investors can follow the underlying four investment avenues


  • Offshore allowances (or any SARB approved offshore allowance)
  • Disclosed amnesty assets and disclosed foreign assets
  • International assets held by non-South African Investors
  • Foreign Portfolio Investment Allowance (asset swap)
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This is not a prospectus, nor does it constitute an offer to the public in respect of the Shares for this offering. The information contained in this communication is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. As provider, Investec is not in a position to have regard to the specific investment objectives, financial situation or particular needs of any specific recipient. The material is based upon information that we consider to be reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. All illustrations, forecasts or hypothetical data are for illustrative purposes only and are not guaranteed. Investec accepts no liability whatsoever for any loss or damage of any kind arising out of the use of all or any part of this communication. Investec does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential clients. Parties are therefore responsible for compliance with applicable local laws and regulations. Prospective Investors should be fully aware of the risks involved in trading investment related products. Returns and benefits are dependent on the performance of underlying assets and other variable market factors and are not guaranteed. This product is not sponsored, endorsed, sold, or promoted by the Index or indices, as specified herein, or the relevant Index sponsor, being the corporation or other entity that (a) is responsible for setting and reviewing the rules and procedures and the methods of calculation and adjustments, if any, related to the relevant Index and (b) announces (directly or through an agent) the level of the relevant Index on a regular basis. No Index sponsor makes any representation whatsoever, whether express or implied, either as to the results to be obtained from the use of the Index and/or the levels at which the Index stands at any particular time on any particular date or otherwise. No Index or Index sponsor shall be liable (whether in negligence or otherwise) to any person for any error in the Index and the Index Sponsor is under no obligation to advise any person of any error therein. No Index sponsor is making any representation whatsoever, whether express or implied, as to the advisability of purchasing or assuming any risk in connection with entering into any transaction in respect of this product. Neither Investec nor the investor shall have any liability to the other for any act or failure to act by the Index sponsor in connection with the calculation, adjustment or maintenance of the Index. Investec has no affiliation with or control over the Index or Index sponsor or any control over the computation, composition or dissemination of the indices. Although Investec will obtain information concerning the indices from publicly available sources it believes reliable, it will not independently verify this information. Accordingly, no representation, warranty or undertaking (express or implied) is made and no responsibility is accepted by Investec as to the accuracy, completeness and timeliness of information concerning the indices. Corporate and Institutional Banking, a division of Investec Bank Limited. Reg. No. 1969/004763/06. An Authorised Financial Services Provider (FSP11750) and registered Credit Provider (NCRCP9). A member of the Investec Group.


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