Ghost Stories #104: Take a byte of growth - Investec Nasdaq 100 Geared Growth

In this episode of Ghost Stories, The Finance Ghost sits down with Investec’s Brian McMillan, fresh off collecting the “Best Issuer in Africa” award in Stockholm on behalf of the Investec Structured Products team. The team's product innovation and ability to earn a place for structured products in modern portfolios is being increasingly recognised.

The latest such product example is the Investec Nasdaq 100 Geared Growth structure. With much debate around the market valuations in this tech-heavy index, this structure is designed to appeal to investors who are finding it difficult to balance the desire to get involved against the risk of being late to the party.

Through a combination of 1.25x geared upside (with a cap) and partial downside protection (a drop of up to 40%), the Investec Nasdaq 100 Geared Growth structure creates a fascinating risk-return profile.

Key topics covered:

• The choice of the Nasdaq 100 index at this stage in the cycle
• The underlying themes in this index across AI and valuations, including reference to the bull and bear cases
• How geared upside (1.25x) with a 60% cap works
• The downside protection mechanism
• Rand-denominated exposure and removing USD currency risk
• The Flexible Investment Note structure and reinvestment mechanics
• Liquidity via the JSE listing and daily pricing
• An understanding of the underlying credit risk
• Fees and why returns are quoted net of costs
• Minimum investment and access via advisors, stockbrokers and EasyEquities

You can find all the information you need on the Investec website at this link.

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