Absa Capital, the corporate and investment banking division of Absa Bank Ltd (Absa), has launched a new series of listed retail structured products using its innovative Long Equity Investment Plan (LEIP) securities wrapper. The first LEIP product, listed on the Johannesburg Stock Exchange on 24 November 2011, is known as Wealth Accelerator.
Retail structured products are packaged retail investment products comprising a fixed-term investment - often linked to major, well known equity indices - and offer returns based on their performance.
The capital protection built into many of these products seeks to preserve investors’ original investment against declines in the market, or as in the case of this initial LEIP, provides a large buffer before capital becomes at risk.
The Wealth Accelerator, allows investors to receive a geared participation of 200% in the growth, if any, of the JSE/FTSE Top40 Index over its 4-year term, limited to a maximum return of 60%. However capital is at risk if the Index has fallen by more than 50% from its starting level on 11 November 2011, and failed to recover to above the starting level at maturity.
“We are delighted to be bringing the first of these innovative products to the market and, over the upcoming months, will be adding to this with other new exciting investments referencing local and offshore equity markets,” said Vladimir Nedeljkovic, Head of Investments at Absa Capital.
Absa Capital’s Retail Structured Products are aimed at all classes of investors, and offer a real and viable alternative to investors - especially those who want to gain exposure to the share market performance without taking the risks associated with investing directly in shares or equity funds.
EndsNote to the editor:About Absa Capital
Absa Capital, a division of Absa Bank Limited (Absa) and affiliated to Barclays Capital, is a leading South African corporate and investment bank with global reach, offering clients financing, risk management and advisory solutions in a wide range of currencies and structures across the globe.About Absa Capital Retail Structured Products
For more information on the Wealth Accelerator (ISIN no: ZAE000162301), LEIP wrappers, and Absa Capital Retails Structured Products’ products and services, please visit http://rsp.absacapital.com. Issued by:
+27 11 214 2420
+27 84 207 firstname.lastname@example.org
For further information contact:
Marketing and Corporate Communications
+27 11 895 6695
+27 79 695 9798