HSBC Launches New Capital-Secured Funds

by Carla Johnson, Investors Offshore.com

24 October 2005

HSBC Bank International in Jersey announced last week the launch of five new capital secured growth funds on 24 October 2005, all designed to offer investors capital protection along with good growth potential.

The five new funds offer investors a diverse selection of investment opportunities linked to the economies of the UK, Hong Kong, Japan and Europe, as well as a fund linked to the Euro Zone property market. Investors can also choose between a three-year and five-year investment term; to invest in US dollars, sterling or euro; and between growth only, or a combination of income and growth funds.

Dan Massey, HSBC Bank International's head of Global Funds and Investments, said: “In these current times of economic uncertainty, capital secured funds are an important part of any investor’s portfolio. One of our new funds, the Japan Market Movement Fund, offers the added feature of a positive return even if the market falls and we believe this will be an attractive feature for our investors.

“We are also particularly excited to offer our customers the opportunity to invest in a property-linked fund, as an alternative to equity linked investments. Property investment has become increasingly popular in recent years and our customers can now diversify their portfolio at a relatively low entry level with none of the risks associated with actual property ownership.”

The five new funds, available for a limited period until 13 December 2005, are the Eurozone Property Index Income Fund, the Japan Market Movement Fund, the Pan-European Growth Fund, the Hong Kong Growth Fund and the UK Growth Fund.

The Japan Market Movement Fund is designed to offer investors an unlimited potential growth linked to the Nikkei 225 Index with a return of 70% of any growth in the index or growth equal to 15% of the positive value of any fall in the index, with weekly index averaging applied in the final year of the investment period.

Minimum investment is US$/£/€5000. For a three-year investment period charges will range from 1% to 1.533% per annum, amounting to a total charge in the range of 3% to 4.6%. For a five-year investment period charges will range from 0.88% to 1.38% per annum, amounting to a total charge in the range of 4.4% to 6.9%. However, HSBC anticipates the total charge to be approximately 4% for three-year investments and 6% for five-year investments.

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