EAST ASIAN GROWTH BASKET LIMITED (“EAGBL”)
CLOSED for investment as of 15th of June 2017.
By Magnus Heystek Jr, Certified Financial Planner®
A great opportunity to diversify current portfolios with an exciting new investment option – offering returns in US dollar coupled with protection of capital – is now available to Brenthurst clients.
Brenthurst has partnered with Investec Structured Products, a division of Investec Bank Limited, to offer Brenthurst clients access to the East Asian Growth Basked Limited (“EAGBL”), an offshore US dollar investment.
Regular readers of the Brenthurst newsletters will remember that we announced another exciting investment opportunity in our August 2016 newsletter – the International Titans Basket Limited investment, an offering which attracted USD118 million from 622 investors around the world. We have no doubt that the East Asian Growth Basket will attract similar support.
This equity investment provides investors with exposure to the performance of a basket of indices namely;
20% NIKKEI 225
20% EUROSTOXX 50 and
15% ISHARES MSCI EMERGING MARKETS ETF
In a world dominated by volatility and lukewarm economic activity in many countries, South Africa included, returns and risk must be carefully considered.
BENEFITS OF EAST ASIAN GROWTH BASKET LIMITED
Investors will buy ordinary shares in a company based in Guernsey and listed on the Bermuda Stock Exchange. THE INVESTMENT TERM IS FIXED FOR FIVE YEARS.
This equity investment is linked to growth of the basket. In fact, 2x the growth, up to a limit of 27.5% (of the benchmark), with a potential maximum return from the investment in the shares settling at 50%.
An index refers to a selection of companies weighted by their market value, and an index gives an investor the weighted performance of those individual companies. In the case of the East Asian Growth Basket, investors have exposure to different indices from different global markets – primarily the USA, Europe and Asia, as an example.
This investment is fixed for five years, but investors can sell their shares based on a willing buyer, willing seller basis. An early exit fees will be levied at mark-to-market less 1.25%, plus Guernsey administrator and banking fees (approximately GBP200 or AUD/USD equivalent).
INVESTMENT MINIMUMS AND ROLL-OVER
The minimum investment amount is USD12 000 (+/- R150 000 at time of writing), which makes it extremely accessible for investors looking to diversify their current portfolios. Investors can make use of their SDA (single discretionary allow-ance), or if needed, apply for a tax clearance certificate. Investors who subscribe now will also be allowed to reinvest for a second term after the initial five year investment term. Brenthurst Wealth assists clients with currency conversions, along with tax clearance certificates.
This is a limited offer from Investec. The closing date is the 15th of June 2017. We highly recommend that interested investors apply well before the closing date.