HSBC is launching three new capital secured growth funds on 13 December, the latest in its award-winning series.
The China Bonus Fund and the China Bonus Plus Fund reflect the growth potential of the Chinese economy, currently predicted to become second in size only to the US by 2020. The Atlantic Growth Fund is linked to two of the world's premier stock-market indices.
The China Bonus Fund invests in the FTSE/Xinhua China 25 Index, a stock market index specifically for international investors, featuring 25 of the top Chinese stocks listed on the Hong Kong Stock Exchange. This fund is for US dollar investment only and is designed to award a high starting bonus each year in exchange for no minimum return.
The China Bonus Plus Fund invests in the same index and is designed to provide a minimum return and the potential to earn higher returns through annual locked in bonuses.
The Atlantic Growth Fund invests in the FTSE 100 index and the S&P 500 index. An additional feature of this fund is that index values are averaged in the final year to protect investors from any stock market volatility late in their investment term.
All three funds have a five-year investment term and are designed to offer capital protection along with good growth potential. They will be available from 13 December 2004 until 1 February 2005, or earlier if oversubscribed.
Kevin Portman, HSBC Bank Middle East Limited's Regional Sales Manager Financial Planning Service, said: "The funds are appropriate for the full spectrum of investors - they provide capital protection but also offer choice between the peace of mind provided by a minimum return or greater growth potential over the investment term."
Customers interested in finding out more about the China Bonus Fund, the China Bonus Plus Fund and the Atlantic Growth Fund can contact HSBC's Financial Planning Advisers at their nearest branch.
-Ends-
Media enquiries to Steve Martin, Regional Manager Corporate Affairs, HSBC Bank Middle East Limited, on 3906631 or email: steve.r.martin@hsbc.com.
Notes to editors:
1. HSBC International Capital Secured Growth Funds were awarded 'Best offshore structured product' in International Investment magazine's annual Offshore Fund and Product Awards 2004, in association with Standard and Poor's.
2. Charges will range from 0.88 per cent to 1.38 per cent per annum, amounting to a total charge in the range of 4.4 per cent to 6.9 per cent over the five-year period. We expect the total charge to be approximately 6 per cent. These funds are designed to return all of the original investment at maturity, having covered all charges in full.
3. HSBC International Capital Secured Growth funds - information| Fund | China Bonus Plus Fund | China Bonus Fund | Atlantic Growth Fund |
Currency | US$//? | US$ | US$/ |
Minimum investment | US$//?5,000 | US$5,000 | US$/5,000 |
Minimum return | Your money back plus: * 9.15% for US dollar investors * 12.65% for sterling investors * 7.35% for euro investors | Your money back. | Your money back. |
Maximum return | An unlimited return based on five annual bonuses. Each year starts with a bonus which is increased or reduced to no less than zero, by the lowest level of monthly growth in each annual period. The bonus levels start at: * 9.15% in US dollars * 12.65% in sterling * 7.35% in euro Each annual bonus awarded is locked in and cannot be eroded in subsequent years. At the end of the investment term, total growth is calculated by adding together the five locked in bonuses. | An unlimited return based on five annual bonuses. Each year starts with a bonus which is increased or reduced to no less than zero, by the lowest level of monthly growth in each annual period. The bonus level starts at: * 12.05% in US dollars. | An unlimited return. Total growth is calculated by multiplying the combined index growth (50% of the averaged index growth from each of the indices, with averaging applied in the final year) by the participation rate. Participation rates are: * 65% for US dollar investors * 100% for sterling investors |
Index links | FTSE/Xinhua China 25 | FTSE/Xinhua China 25 | FTSE100 and S&P500 |
4. The HSBC Group
HSBC Holdings plc is headquartered in the UK. The HSBC Group serves over 110 million customers worldwide from approximately 10,000 offices in 76 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With assets of US$1,154 billion at 30 June 2004, HSBC is one of the world's largest banking and financial services organisations. HSBC is marketed worldwide as 'the world's local bank'
Press Release 2004
