HSBC relaunched its Capital Secured Growth Funds (CSGF) on 15 August 2005 with five new funds. Following the adoption of UCITS III legislation1 (an EU directive allowing greater use of financial instruments), the key changes to HSBC's capital secured growth funds include:
- greater security - an increase in the underlying capital security of CSGF launches.
- More investment choice - for the first time in this fund series, investors can choose between an equity index linked fund and a fund linked to commodity related stocks.
- More flexibility - for the first time investors in this fund series can choose between a three- and five-year investment term; and between growth only or income and growth funds.
- more funds to choose from - there are five funds on offer in this launch whereas in previous launches of CSGF there have typically been only two or three funds on offer.
Kevin Portman, Regional Sales Manager, HSBC Bank Middle East Limited, said "Capital protection remains one of the top priorities for our investment customers, but choice both in terms of product and markets being invested in is also very important. Our adoption of the UCITS III legislation gives us more flexibility to offer a wider range of fund options. That helps us achieve what our customers want most - funds that best suit their existing portfolios and their investment goals."
The five funds on offer are the UK Growth Fund, the UK Bonus Income Fund, the Japan Bonus Fund, the Asia Opportunity Fund and the Global Commodity Income Fund. All five funds are available from 15 August until 4 October, but may close earlier if over-subscribed.
Charges
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, we anticipate the total charge to be approximately 4% for three-year investments and 6% for five-year investments. These funds are designed to return all of your original capital at maturity, having covered all charges in full. Please see the Supplement for further details.
Investment Structure
Generally, the return of capital and index or stock basket growth is dependent upon financial instruments, which will be bought from one or more financial institutions and possibly from sovereign states. These financial institutions or sovereign states will have a rating of at least A or A2, as determined by either Standard & Poor's, Moody's Investor Services Inc., or an equivalent rating agent. Specifically for this latest CSGF launch, assets are backed as per the footnote 2: above. While we believe these institutions and sovereign states to be financially sound, in the event they do not fulfil their obligations your capital will be at risk and you may not get back the amount you invested. CSGF is not a guaranteed investment.
Eligibility
This offer is not available for residents of the United States of America, Republic of Ireland, Australia, Canada, Hong Kong, Malaysia or New Zealand.
What the funds offer:
A choice of:
- Five funds.
- Sterling, US dollar or euro.
- Growth potential or income and growth potential.
- 3 or 5 year investment periods.
- A wide variety of equity index links and a stock-basket link.
-Ends-
HSBC Bank Middle East Limited
HSBC is the largest and most widely represented international bank in the Middle East. HSBC Bank Middle East Limited has 29 branches throughout the United Arab Emirates, Oman, Bahrain, Qatar, Jordan, Lebanon, and the Palestinian Autonomous Area, including an offshore banking unit in Bahrain. This extensive regional coverage is strengthened by another member of the HSBC Group HSBC Bank Egypt SAE, and by its associated companies, The Saudi British Bank and British Arab Commercial Bank Limited. In addition to its Middle Eastern network, the Bank has a representative office in Tehran, Iran.
The HSBC Group
HSBC Holdings plc is headquartered in the UK. The HSBC Group serves over 110 million customers worldwide from over 9,700 offices in 77 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With assets of US$1,467 billion at 30 June 2005, HSBC is one of the world's largest banking and financial services organisations. HSBC is marketed worldwide as 'the world's local bank'.
For more information please contact:
Steve Martin
Regional Manager Corporate Affairs
HSBC Bank Middle East Limited
Tel: 9714 390 6631
Mob: 9715 0 4564854
E-mail: steve.r.martin@hsbc.com
© Press Release 2005
