As the world grapples with economic unpredictability, structured investments are presenting a compelling solution and a more balanced approach to wealth preservation and growth for South African investors.

This is according to Luvhani Makoni, Lead Specialist for Liberty Investment Propositions.

The global financial landscape remains unpredictable and South African investors are having to navigate an increasingly volatile global market, where uncertainty is driven by geopolitical tensions, fluctuating interest rates, and shifting trade policies. In early June, foreign investors withdrew 1.02 billion USD from Indian equity markets, driven by renewed US-China trade tensions and rising US bond yields. Meanwhile, a temporary easing of tariffs between the US and China has provided some relief, lifting global markets.

However, foreign investors are also pulling billions from emerging markets and gold prices have so far surged nearly 28% in 2025 as a safe-haven asset. Therefore, the need for diversified, risk-managed investments has never been greater. Given this environment, investors are seeking opportunities that offer growth potential while mitigating downside risks. Structured investments, particularly those with offshore exposure allow investors to participate in market gains while safeguarding their capital against volatility.

For example, Liberty recently opened two new tranches of the Liberty Structured Global Performer portfolios – the V6 and ESG V6 investment. Both allow investors to get offshore exposure while protecting against both currency fluctuations and a loss of capital up to a certain level.

According to Makoni, these portfolios are available on a fixed-term product for a period of 5 years, the advantage is that investors can understand today what their payoffs and outcomes at the end of the investment term could be, and this gives investors peace of mind. The Liberty Structured Global Performer V6 portfolio, gives investors exposure to both the S&P 500 index in the US and the Eurostoxx 50 index in Europe. The split between the two is 50/50.

Makoni adds that at the end of the five-year term, if this combination of indices is positive at maturity date after adjusting for tax, investors will receive a minimum targeted return of 8.50% per annum for individuals, and 7.69% per annum for companies. This will be the case, even if the index is up only one or two points.

“If the index finishes at a level that is greater than 8.50% per annum for individuals or 7.69% per annum for companies after tax, investors will see that full gain after adjusting for tax.

At the same time, if there is no change in the index at the end of five years, or it falls by up to 30%, the product offers full capital protection. In other words, if the combination of indices goes down over this period investors won’t lose anything unless that decline is greater than 30% at the end of the five years. If that happens, investors will receive the then current value of the investment.”

The Liberty Structured Global Performer ESG V6 offers even greater upside protection and the chance to invest in a portfolio with a sustainability focus. In this portfolio, investors get exposure to the MSCI Global Diversified ESG 100 Decrement 5% index. This is a portfolio of 100 stocks in major markets such as the US, Europe, China and the Asia Pacific region, with an added layer of sustainability.

At the end of the five-year term, if this index is up but below the minimum targeted return after adjusting for tax, investors will receive the minimum targeted return of 12.50% per annum for individuals, and 11.38% per annum for companies. If the index finishes above these levels, investors will see that full gain after adjusting for tax.

The portfolio also offers the same capital protection up to a 30% decline in the index.

“What makes these kinds of solutions highly relevant is that they allow investors to hold a diversified exposure to global stock markets, while offering some protection in this current market environment. This provides reliable outcomes,” Makoni says.

Given the levels of uncertainty around the world, this can make them a valuable part of a long-term portfolio. Protecting capital is always important, but when the risks are as high and as varied as they are now, it’s imperative.

The structures close on 4 July 2025. Investors can visit Liberty's website to contact an accredited Financial Adviser or engage their broker for more information.