New HSBC Funds To Tap Into US And Asian Stock Market Growth

by Phillip Morton, Investors Offshore.com

25 June 2004

HSBC Bank International is next month launching two new capital secured funds offering investors the chance to earn returns from American and Asian equity markets.

The new funds, the Nasdaq Bonus Fund and the Asia Bonus Fund, will run for five years and aim to reflect the economic strength of the largest companies within the Nasdaq stock market and the growth potential of two key Asian stock markets respectively.

The Nasdaq Bonus Fund will offer investors a minimum return of 11.5% for US dollar investments, 18% for sterling and 7.5% for euro. Investors are also offered a starting bonus of 100% on their capital which may then be reduced during the investment term depending on the performance of the Nasdaq-100 Index each month.

The Asia Bonus fund meanwhile, will invest in the Hong Kong Hang Seng Index and the FTSE/Xinhua China 25 Index. It is available in US dollars and offers a ‘lock-in’ bonus feature dependent on the monthly performance of the indices during the investment period. The fund offers a minimum return over the five-year investment period of 10.5%.

“We’ve seen real customer appetite for products that provide minimum returns, so we’ve opted for this feature to be built into both new funds,” commented Dan Massey, HSBC Bank International’s head of global funds and investments.

“Although the funds are designed to offer the growth potential of selected stock markets, we have been careful to give investors peace of mind through the combination of capital security and a minimum return on their investment. This, as well as the potential for a bonus at the end of the term, offers investors a hat-trick of benefits,” added Mr Massey.

The funds are due to be launched on July 5th.

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