Asia Pacific Basket and S&P500 Digital Plus ESP

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Announcing the full subscription for the Asia Pacific Basket Limited and the launch of the S&P500 Digital Plus ESP

There are many good reasons why investors should invest offshore – a key one being diversification. Investec has identified the importance of diversified offshore investments and offers investors the opportunity to access both emerging and developed markets through unique equity structured products.

An excellent example is the Asia Pacific Basket Limited, which recently closed on 22 August following the three month subscription period, having successfully placed all available shares on significantly more favourable terms than the minimum levels indicated. Investec's Asia Pacific Basket Limited is an investment in a basket of Asian indices denominated in Australian dollars (AUD) which offers investors the chance to access six of the major markets in Asia, including Taiwan, Singapore, Australia, China, Japan and Hong Kong. This product allows the investor to gain exposure in USD to these growing markets with capital protection in Australian dollars.

Japie Lubbe of Investec Structured Products explains: “The appetite for exposure to one of the most dynamic and exciting regions at the moment is clear. While Asia currently accounts for 30% of global GDP, it has nearly three fifths of the global population and stakes a claim to being the primary engine of global growth.”

Commenting on the improvement in the pricing and leverage of the latest Asia Pacific Basket, Lubbe adds: “With significantly more subscriptions than anticipated we were able to improve the economies of scale. In addition we were able to secure favourable asset pricing which was passed on to investors.”

As the global economic recovery continues there is equally strong motivation for investment into well developed economies. Brian McMillan, of Investec Structured Products explains, “With the recovery led by the USA the S&P500 index, as the benchmark for the largest 500 companies in the USA, stands to benefit.

The Investec Offshore S&P500 Digital Plus is a structured product, which is now open for subscriptions until 29th October 2013. This 3.5 year growth investment is linked to the performance of the S&P500 Index in US Dollars. It not only offers the investor the opportunity to invest in the S&P500 index but also the ability to do so in US Dollars.

“If the developed world’s economies continue to recover and investors start to increase their risk tolerance, we are likely to see a continued strengthening of the Dollar against emerging market currencies and increased flows into equities, making an investment in the Investec S&P500 Digital Plus an attractive option,” McMillan added.

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Brian McMillan
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