Equity Products

South Africa - Reitway Global Leveraged Equity Structured Product

Fund Asset Value

ZAR 72 million

Risk profile

Aggresive

Minimum Investment

ZAR 100 000

The investment opportunity

The Reitway ESP is a Johannesburg Stock Exchange (JSE) listed investment product issued by Investec Bank Limited that provides investors with a geared exposure to the Reitway BCI Global Property Fund. Additional leverage of between 27% and 33% magnifies returns (and losses) and is aimed at investors seeking geared upside on a Global Property portfolio.

The instrument represents the Investor's rights to a parcel of Property Fund Units which are purchased using the funds received from the Investor and to an Over-the-Counter Put Option ovet the Units. This provides geared upside and downside return.

The Reitway ESP is subject to the listing requirements of the JSE giving Investors the ability to hold the Reitway ESP in their stock broking account.

An Investor may enter or exit the investment daily with Investec making a market with a bid to mid spread of 1%.

The daily price of the Reitway ESP is subject to various factors including prevailing interest rates and market levels. The put strike price is equal to the value of the Reitway BCI Global Property Fund units held, less the cost of any funding used to pay for gearing.

 

How does the gearing work?

All the funding provided by Investec is utilised to obtain additional exposure to the Reitway BCI Global Property Fund up to a pre-selected gearing ratio. Dividends and cash distributions on the Units are also used to obtain addional Units.

This investment may be appropriate for you if:

  • You expect Reitway BCI Global Property Fund will generate income returns greater than the interest levied to fund the addional debt provided by Investec
  • You are looking for an investment that offers geared upside (with the knowledge that gearing can also magnify any downside movements)
  • You have a minimum of R100 000 to invest.
  • You have an initial investment horizon in excess of three years (with immediate access to your funds if required)

This investment may not be appropriate for you if:

  • You want 100% principal protection under all conditions.
  • You require regular dividends and income.
  • You do not wish to take credit risk on Investec.
  • You do not wish to assume the risk of downside gearing.
 
 
Inception date:
25 August 2015
JSE category:
Specialist Product
Investec annual management fee:
0.35% (excl. VAT)
JSE code:
ESPIB1
Issuer:
Investec Bank Limited
Cost of Funding:
3 month Jibar + 250 BPS
ISIN Number:
ZAE000208922
Minimum initial investment:
ZAR 100 000
Funding to asset ratio:
27% - 33%
Valuation:
Traded daily on JSE
Minimum additional investment: 
ZAR 10 000
Underlying Holding:
Reitway BCI Global Property Fund
Investment Horizon:
Minimum 3-5 years
Bloomberg ticker:
RGLESPA: SJ