Get higher returns with the Discovery Enhanced Yield Fund

“You can get a fixed return of 15 percent if the markets are flat or positive.”

The Discovery Enhanced Yield Fund is designed to give you the potential to earn much higher returns in some of the best performing funds, including from Wall Street indices.

How the Discovery Enhanced Yield Fund works

Opening on 30 March and closing on 8 May 2015, the fund is available as a limited offer, optimised to work in various performance environments by giving you downward protection against bear markets while providing upward gains in bull markets. The Enhanced Yield Fund gives you a fixed return of 15 percent. You get this return after an investment period of one year if, for example, the FTSE 100 Index return is flat or positive at the end of one year, excluding dividends.

If the FTSE 100 Index return is negative at the end of the first year, no amount will be paid. The fixed return on the Discovery Enhanced Yield Fund will then be increased by another 15 percent and the total will be paid at the end of the second year if, for instance, the FTSE 100 Index return is flat or positive from inception at the end of the second year.

This investment cycle will continue for up to five years. The Discovery Enhanced Yield Fund will provide a fixed return of 15 percent, multiplied by the number of years until a flat or positive return at a year end is achieved. The full return will only be paid at the end of the year in which the FTSE 100 Index return was flat or positive.

Protect your capital in negative markets

If, for example, the FTSE 100 Index return is below 0 percent at the end of each of the five years, capital protection is provided if this index has not fallen by more than 40 percent at any stage over the five years. If it falls by more than 40 percent at any stage; however, the capital protection does not apply and you will receive the return of the FTSE 100 Index.

This return scenario is measured excluding dividends and currency movements.

Please consult your financial adviser to get more comprehensive information on the Enhanced Yield Fund; this article is intended for information purposes only.