Exploring global opportunities with structured protection

The popularity of structured investments is growing, particularly among investors seeking to invest with a degree of safety added to protect against the possibility of market volatility.

To support this burgeoning demand, Liberty is offering another tranche of its Structured Global Performer portfolios. With these, prospective investors will be able to invest in proven overseas markets with built-in protections.

Along with these buffers, the investments are rand-denominated, so they are covered against any currency swings.

The portfolios have a five-year lifespan.

Global markets spread risk

“Investing some of a client’s portfolio into global markets provides them with diversification and reduces concentration risk,” says Luvhani Makoni, lead specialist for Investment Propositions at Liberty.

“Along with this, access to these markets provides a path to some industries, sectors and companies that may not be fully represented in the South African market.

“When investing, volatility is always part of it. It’s something that’s always happened and will likely be there in the future,” she adds.

“The important thing is finding opportunities within it and helping clients navigate it.

“This is the benefit of having a structured portfolio as these portfolios are designed to benefit from growth opportunities, while offering protection against negative market movements.”

AI remains an opportunity

The portfolios offer different ways to experience global growth.

The first invests in global companies that are both enablers and adopters of the growing artificial intelligence (AI) sector.

Given the success of previous tranches, Liberty is presenting a third tranche of its Liberty Structured Global Performer AI portfolio, first launched in October last year.

This structured portfolio gives clients exposure to the MSCI Global Artificial Intelligence 5% Decrement EUR Index.

The index provides exposure to the 100 leading global companies advancing artificial intelligence, as well as those benefitting from it from a business efficiency perspective.

Global powerhouse economies

The second portfolio is designed to capture a balance of the momentum of the world’s leading economies, the United States and Europe.

The Liberty Structured Global Performer V9 portfolio is a basket based on a weighting of 50% into the S&P 500 and 50% into the Euro Stoxx 50 capital indices.

This type of structure was first offered by Liberty in 2018 and since then, three portfolios with similar exposure have all matured in the money.

Liberty as your global partner

The AI V3 portfolio offers indicative minimum per-annum yields of 10.3%* for individuals and 9.35%* for companies, while the V9 Global Performer offers 6.8%* per annum for individuals and 6.14%* per annum for companies if the change in the value of the basket is positive at the maturity date.

Liberty quotes these indicatives of minimum returns net of fees and taxes. Other return scenarios apply.

There are also allocation enhancements – an additional 1% return allocation for investments over R1 million and 2% for investments over R3 million.

While protection is a part of how structured portfolios are constructed, how long that protection lasts is important, given the many market events that have happened over the last few years.

That is why Liberty offers clients 30% downside protection on both structured portfolios, which lasts throughout the term of the structured portfolios (five years).

As the structured portfolios are accessed through an endowment via the Evolve Investment Plan (including Sinking Fund), clients also get the benefits of an endowment, such as tax efficiency for more affluent investors and estate-planning benefits.

This offer is available for a limited time only from 5 October until 3 December 2026.

*  This is the return Liberty aims to achieve but it will be subject to market conditions at Strike Date. Liberty will inform you of the final return percentage (%) one week after Strike Date. The returns are net of tax and fees and are denominated in rand.

Disclaimer: This article does not constitute tax, legal, financial, regulatory, accounting, technical or other advice. The material has been created for information purpose only and does not contain any personal recommendations If there are any discrepancies between the document and the contractual terms and conditions, the contractual terms and conditions will prevail. While every care has been taken in preparing this material, no member of Liberty gives any representation, warranty or undertaking and accepts no responsibility or liability as to the accuracy, or completeness, of the information presented. Please consult your financial adviser should you require advice of a financial nature and/or intermediary services. Liberty Group Limited is a Licensed Life Insurer, an Authorised Financial Services Provider (no 2409) and part of the Standard Bank Group. Terms and Conditions, Risk and Limitations apply. 

Structured portfolios are only available on the Evolve Investment Plan and the Evolve Investment Plan (Sinking Fund).

About Liberty: Liberty is a wholly owned subsidiary of The Standard Bank Group and is currently one of the largest providers of long-term insurance solutions to South Africa’s retail affluent market. With a strong and relevant brand of more than 60 years, Liberty offers an extensive, market-leading range of products and services to help clients build and protect their wealth and lifestyle. This is enabled by Liberty’s 3 000-strong tied distribution force that expertly equips customers with knowledge to make financial decisions that add value throughout their various life stages. Liberty’s incorporation into Standard Bank provides synergies and advantages not only in South Africa but across the African continent, positioning Liberty as an integral part of a universal financial services organisation focused on delivering exceptional customer experiences and superior value. Liberty’s wholly owned asset manager STANLIB is one of the biggest retail unit trust managers (including money market) in South Africa, with award-winning capabilities in property and fixed income, who together with their market-leading offshore partners are able to provide unique investment opportunities for clients.

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