Carrick partners with Absa for capital protection and fixed returns

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Great opportunities rarely repeat themselves. But there are exceptions.

Following the outstanding success last month of an exclusive investment offering by Carrick Wealth in association with Absa Bank, another note has just been issued offering the same superb investment opportunity: invest in rands with your capital fully protected, receive a fixed return and benefit from global growth.

As with the previous note, this offer is available exclusively to Carrick. Also, the window of opportunity is again limited as the subscription period closes on Friday 23 November, by which date funds must be received.

“We had such an excellent response to our first note that we negotiated a second one with Absa. It allows those clients who missed out the first time, or those wishing to participate a second time, another great investment opportunity,” says Anthony Palmer, Carrick’s Director: Corporate and Client Solutions who also chairs the Carrick Investment Committee.

What distinguishes this note is that all the elements are housed together in a single offering. According to Palmer the combination of tax efficiency, capital protection, the fixed after-tax return plus leveraged and uncapped market exposure makes it so compelling, especially given the high tax environment faced by local investors, as well as lacklustre returns on the SA stock markets and some recent significant price shocks in respect of certain South African shares that are still fresh in investors’ minds.

In terms of the note, investors will receive 50% of their investment back after two years with a fixed return of 13.25% per annum, or 26.5% guaranteed by Absa after the two years have elapsed. The remaining half of the initial investment sum is paid back after five years, linked to 1.25 times the growth of the London Stock Exchange’s FTSE 100 Index over the five-year investment period. This means that after five years, investors will receive the other half of their rand investment amount back, plus at least 125% participation in the index performance. More information is available from Carrick’s Fact Sheet.

The participation rate will be determined on the investment start date and levels will be averaged over the final six months. If the FTSE 100 shows no growth or negative growth over the period, investors still get all their capital back. The FTSE 100 has a market cap of more than £2-trillion and lists top global blue-chip companies.

As with the previous note offering, subscription is open to trusts and individuals with a minimum R100,000 to invest in one single, fully capital-protected South African rand (ZAR) investment in a 1Life Insurance Ltd endowment-linked investment policy. Investing in rand and being paid out in rand means there’s no currency risk, while all returns are net after tax and fully inclusive of all fees.

Any funds transferred early will earn interest, so clients don’t have to wait until the last moment and possibly risk missing the deadline if, for instance, they intend exiting notice accounts.

“With the previous note the response we received came in equal measure from trusts and individuals who are looking for inflation-beating returns and capital protection. This investment opportunity also gives effect to Carrick’s integrated wealth management strategy that incorporates an element of offshore diversification,” says Palmer.

If you missed out on the previous note issue, or want to repeat this excellent investment opportunity, contact Carrick at [email protected] – but remember, the offer closes on Friday 23 November.

• Carrick Wealth is a registered South African financial services provider specialising in South African and international financial planning and integrated wealth management solutions. Carrick is also licensed in Zimbabwe, Botswana and Malawi, and holds three global licences in Mauritius. Carrick at all times maintains its independence with regard to product providers and asset managers, providing bespoke risk assessment, financial planning and other services to high net worth individuals (HNWI). Through our own qualified and experienced wealth specialists, as well as through partnerships with industry leaders in the fields of foreign exchange, tax, international property, offshore bank accounts, trusts, wills and estate planning, Carrick is able to provide the highest levels of service for your financial planning and investment requirements, both offshore and domestic. This communication is intended solely for information purposes for the use of designated recipients and is not an offer, recommendation or solicitation to transact. While it is based on information available to the public and from sources believed to be reliable, Carrick makes no representation that it is accurate or complete or that any returns indicated will be achieved.