For brave in­vestors

Finweek English Edition - - Insight -

IN­VESTEC HAS a nice hot, en­hanced div­i­dend se­cu­rity listed on the JSE that al­lows in­vestors to ob­tain all the ben­e­fits of a full or­di­nary BAT share for only R78/share. The in­stru­ment’s JSE code is BTIIHA and full de­tails are avail­able on in­vestecwar­

The fi­nal in­stal­ment of R161,18 was due early in Jan­uary 2008. Rather than pay­ing the in­stal­ment, in­vestors usu­ally sim­ply let such an in­stru­ment roll over in the new se­cu­rity that In­vestec is­sues a week or so be­fore the ex­piry date.

Briefly, the cur­rent in­vest­ment in BTIIHA gives an in­vestor the ben­e­fit of shar­ing in the full in­crease in BAT’s share price be­tween now and De­cem­ber and, af­ter it’s rolled over in the next is­sue with the code BTIIHB, the in­vestor can also share in the full div­i­dend of at least 880c that will be de­clared by March 2010.

Re­mem­ber, such in­stru­ments are mainly for in­vestors with a high risk pro­file and ba­sic knowl­edge of di­rect in­vest­ments on the JSE is also re­quired. Nev­er­the­less, I con­sider such in­vest­ments, es­pe­cially now in BAT, to be much safer than any of the small-cap shares so of­ten hawked around.

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