HSBC Launches Two New Funds

by Carla Johnson, Investors Offshore.com, London

17 September 2004

HSBC Bank International has announced the launch of two new capital secured growth funds on 20 September. The European Bonus Fund and the US Growth Fund will provide investors with the security of capital protection, a minimum return and the potential for additional bonuses at the end of the five-year term.

The US Growth Fund invests in the S&P 500 Index and features an new variable lock-in feature, designed to capture the highest level of growth, subject to a maximum return of 66%, over the five-year investment term. Investors receive a minimum return of 10% as well as the knowledge that their original capital is secure.

The European Bonus Fund is linked to the performance of five equally weighted major European stock market indices2. The fund is designed to provide investors with capital security and the greater of a minimum return (8.3% for US dollar investments, 10.5% for sterling or 7.0% for euro), or an unlimited return based on five potential bonuses.

The funds will be available from 20 September until 2 November 2004, or earlier if over-subscribed.

HSBC's Capital Secured Growth Funds were recently recognised for 'passing the benefit of HSBC's structured product expertise to clients without demanding unreasonable fees in return' by this year's Offshore Fund and Product Awards.

Dan Massey, HSBC Bank International's head of global funds and investments, said: "We believe that the demand for structured products that provide good growth potential as well as capital security shows no sign of diminishing, and our regular launches allow us to update our products, continually bringing the research capabilities of one of the world's largest financial organisations to our customers.

"The new European Bonus Fund reflects the resurgence of five key European economies, coinciding with the expansion of the European Union and increasing signs of economic recovery. Alternatively the US Growth Fund provides investors with the opportunity to benefit from an innovative product and the potential growth in the world's largest economy. Whichever fund they choose they will have peace of mind that their original capital is secure."

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