FNB Unveils Third Tranche of Structured Products to Boost Wealth Growth

In another move to provide diverse investment opportunities for South African investors, FNB released the third tranche of its widely acclaimed Structured Products. Designed to deliver robust returns while safeguarding capital, these innovative investment solutions are a powerful tool for investors seeking to diversify their portfolios in today’s volatile economic environment.

Capital Protection and High Returns for Wealth Growth

Samukelo Zwane, Head of Product at FNB Wealth and Investments, says,
“Structured products, once the exclusive domain of institutional investors due to their prohibitive costs and high minimum investments, have evolved dramatically in recent years. Today’s structured products offer individual investors the chance to achieve their financial goals by adding these cleverly designed products to their portfolios, benefiting from the tailored risk-return profiles, capital protection, and exposure to international markets that they offer.”

FNB Structured Products: Tailored Solutions for Wealth Growth

The two FNB Structured Products now open for investment are the FNB 100 CapitalPreserver Participation 3 (ZAR) and FNB CapitalPreserver Autocall 3 (USD) solutions. These products offer compelling opportunities for investors to gain from global market growth while minimizing risk.

FNB 100 CapitalPreserver Participation 3 – Building Wealth in a Volatile Market

FNB 100 CapitalPreserver Participation 3 is a South African Rand-denominated investment allowing participation in the EuroStoxx50 Index’s growth with a 200% participation rate. This means that if the index grows over the five-year term, investors will receive double the index’s performance, enhancing wealth accumulation.

With 100% capital protection at maturity, investors’ initial investments are safeguarded, making this a low-risk option for those looking to benefit from European market growth. Since it is rand-denominated, investors also benefit from any local currency depreciation during the investment term.

FNB CapitalPreserver Autocall 3 – Wealth Protection with USD Exposure

FNB CapitalPreserver Autocall 3 is a US dollar-denominated investment designed to provide exposure to the Bloomberg Luxury Series 1 Index. If the index remains flat or rises at specified observation dates, the investment matures automatically, returning capital and delivering an 11% to 12% per annum return, adding significant value to investors’ wealth portfolios.

If the index falls, the product includes a 30% drawdown buffer. This ensures investors receive full capital back as long as the index doesn’t drop by more than 30%, providing security for wealth preservation.

FNB’s Commitment to Growing Wealth for South African Investors

According to Zwane, these structured products are increasingly popular among retail investors due to their transparent risk profiles, capital guarantees, and ease of access to global markets.

“The success of the second tranche of FNB Structured Products, which was oversubscribed by 50%, is evidence of the increasing demand for these innovative financial instruments, and FNB expects an even stronger response to this third tranche, as more investors recognise the value that structured products bring to a balanced portfolio,” Says Zwane.

How to Invest and Grow Your Wealth with FNB Structured Products

Investors looking to seize the opportunities presented by the third tranche can do so through FNB Stockbroking and Portfolio Management. With minimum investments of R20 000 for the FNB 100 CapitalPreserver Participation 3 and $6 000 for the FNB CapitalPreserver Autocall 3, these solutions are accessible to a broad range of investors.

Conclusion: Structured Products as a Path to Wealth Accumulation

“The FNB Structured Products embody FNB’s commitment to making world-class investment instruments available to all South Africans, and by combining capital protection with exposure to international markets, tranche three is another FNB investment value proposition that we believe will greatly benefit the avid investor’s portfolio and be hard to match within the market,” concludes Zwan