1st Group Capital is pleased to share information on the Twin Fixed Return & Growth Protector 114; an investment solution designed for clients (individuals, trusts and corporates) who want to protect their capital while receiving attractive fixed returns and retaining the potential to benefit from growth in global developed equity markets. The investment is offered through 1st Group Capital and Alta-x.com and is structured as a five-year listed note issued by Absa Bank Ltd. The minimum investment is R 250 000 and the product has a conservative risk profile.
Seeking global growth with peace of mind?
In today’s uncertain markets, many investors are looking to diversify into global equities – especially after recent corrections – but without exposing their capital to the risk of loss or receiving no return at all.
The Twin Fixed Return and Growth Protector offers a compelling solution
A 5Y 100% ZAR capital-protected investment with attractive fixed returns, intra-term liquidity, and geared, uncapped exposure to a customised version of the S&P 500 Index. This index features a built-in risk control mechanism targeting 10% volatility, helping to manage market swings. Plus, at maturity, any growth is linked to the USD/ZAR exchange rate, giving you the potential to benefit from both global market performance and currency movements.
Want market growth without taking on the full rollercoaster of traditional investing?
Structured products can give South African investors more defined investment outcomes, combining market exposure with predetermined conditions around returns and downside protection. Discover how they work, who they may suit, and why choosing the right adviser matters.
100% Capital Guaranteed and Fixed Returns
How the investment works
The client’s investment is divided into three components:
25% after one year: The client receives this portion of the capital together with a fixed return of 18. 50%.
25% after three years: The client receives this portion of the capital together with a fixed return of 37.00%.
50% after five years: The remaining portion provides 100% participation in any positive performance of the S&P 500 Daily Risk Control 10% USD Excess Return Index, translated into rands. If the index return is negative over the investment term, the client receives the full remaining 50% capital allocation at maturity.
Example based on an investment of R2 000 000.
For ease of reference, the investment and potential payments would be structured as follows:
After one year: R500 000 capital allocation × 1,185 Guaranteed maturity payment: R592 500.
After three years: R500 000 capital allocation × 1,37 Guaranteed maturity payment: R685 000.
After five years: The remaining R1 000 000 participates in 100% of any positive index performance, including the applicable rand/US dollar currency effect. If the final calculated index return is zero or negative, the minimum maturity payment for this component is R1 000 000.
For example, if the five-year index-linked component achieves a total positive return of 33 % after the currency effect, its maturity payment would be R1 330 000. The client’s combined payments across the three maturity dates would therefore amount to R2 607 500 before tax. This scenario is illustrative and is not a guaranteed outcome for the index-linked component.
Key benefits
Capital protection in rands at the applicable maturity dates, subject to the issuer meeting its obligations.
Fixed returns of 18,50% after one year and 37,00% after three years, before tax and after fees.
100% uncapped participation in positive index performance on the five-year component.
Potential to benefit from rand depreciation on positive offshore growth.
Diversification into developed-market equities.
Daily risk management within the underlying index, targeting volatility of 10%.
A local listed structured note issued by Absa Bank Ltd, with the document recording a local credit rating of Aa1.za.
Maturity Dates
One-year Fixed Return leg (‘Fixed Return Investment’): 17 September 2027 - 18.50%
Three-year Fixed Return leg (‘Fixed Return Investment’): 17 September 2029 - 37.00%
Five-year index-linked leg (‘Index Investment’): 17 September 2031 - Participation Rate (PR): 100%
Important dates
Opening date: 13 August 2026
Closing date: 10 September 2026
Investment start date: 17 September 2026
One-year maturity date: 17 September 2027
Three-year maturity date: 17 September 2029
Five-year maturity date: 17 September 2031
Important considerations
The investment is intended to be held for its full term. Any early withdrawal or surrender will take place at the prevailing market value and may result in the investor receiving less than the original amount invested. There is no cooling-off period, and payments due at maturity are expected to be made within approximately seven business days. The stated one- and three-year fixed returns are reflected as before tax and after fees. Investors should obtain their own tax advice, and advisers should assess the product’s suitability in relation to each client’s circumstances, objectives, liquidity requirements and risk profile.
Structured Products Invest With Less Guesswork in SA — FFREEDOM
T&Cs apply. Speak to an accredited advisor
Learn more
Learn more“"The Twin Fixed Return and Growth Protector provided a secure path for our corporate treasury to diversify into global markets while ensuring our initial Rand capital was completely protected. The unbelievable and unique access to funds gave us welcome liquidity through fixed returns after years 1 and 3, and the potential for uncapped upside from the S&P 500 exposure has delivered strong growth. It perfectly balances risk management with attractive returns for institutional investors." ”
Frequently asked questions
How can I invest?
You can speak to your financial adviser, who will help you make sure that the investment is suitable for you. Once you regard this investment proposition as suitable for you, you can complete the relevant application form and investment instruction with your financial adviser and submit it to the address on the forms.
How can I monitor the performance of my investment?
You will receive an investment confirmation soon after you have invested. We regularly make the performance fact sheets available on our financial adviser website. You can obtain these by speaking to your financial adviser. You will also receive regular investment statements from the Administrator of your investment. You can speak to your financial adviser if you have any questions.
Is there any currency risk in the investment?
The index is quoted in USD. Your investment is in ZAR and any positive index performance is exposed to the USD/ZAR exchange rate over the investment term. Your initial investment is not exposed to any movements (positive or negative) in the USD/ZAR exchange rate only the potential growth on the 5-year equity index leg. This investment does not utilise any of your individual foreign exchange allowances.
Can I access my investment before the maturity date if I need to and are there any fees involved?
The investment is aimed at investors who do not need access all of their money before the end of the relevant investment term. Any early withdrawals are subject to normal market conditions and associated costs at the time of withdrawal.
What happens to the investment in the event of death?
In the event of death, the executor is required to submit relevant documents to sell the full investment at the prevailing market value.
What happens at the end of the investment term?
On the maturity date of each of the three legs of the investment (one, three and five years respectively), the Issuer will pay the capital and Fixed Returns/Equity-index Returns (if any) to the Administrator within seven business days and your account will be credited with this amount.
Is there a cooling-off period?
There is no cooling off period allowed under this investment, so please consider carefully whether you want to invest before you submit the application form.
This is paid partner content. FFREEDOM's editorial team was not involved in producing it, and publication does not constitute an endorsement or financial advice. FFREEDOM is a product of 1st Group Capital (Pty) Ltd, an authorised financial services provider (FSP 49632).