HSBC Issues New Capital Guaranteed Fund Investment

Investors Offshore, London

10 January 2003

HSBC Offshore has announced that it is to launch the latest issue of its best-selling Offshore Capital Secured Growth Funds (CSGF) on 20 January 2003. The two funds, which will be available until 18 March 2003, are the Nasdaq Annual Growth Fund and Asia Plus Growth Fund.

Martin Spurling, head of investments for HSBC Offshore said: " Investors are becoming increasingly cautious in current market conditions, and these two new HSBC funds are designed to return their capital in full at maturity, while enabling them to benefit from potentially higher returns than traditional savings accounts.

"In addition we have built in new benefits that make a real difference, such as locking in each year's growth and offering bonuses that could generate a return at even higher levels."

Capital Secured Growth Funds are designed to provide the minimum returns described regardless of market performance. But to receive the full benefit of CSGF, investors must be prepared to hold the investment for the full four and a half year term. If investors decide to cash in shares early they may not get back as much as they originally invested.

HSBC says that the return of investors' capital and index growth is dependent upon financial instruments which will be bought from a number of financial institutions. These financial institutions will have a rating of at least A or A2 as determined by either Standard & Poor's, Moody's Investors Services Inc or an equivalent rating agent.

Capital Secured Growth Funds invest in the shares of HSBC International Capital Secured Growth Funds plc - an umbrella type open-ended company, with variable capital incorporated under the laws of Ireland and authorised by the Central Bank under the UCITS Regulations. A minimum investment of £5,000 or US$5,000 is required.

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