By Joanne Frearson HSBC is set to launch the latest issue of its Capital Secured Growth Funds (CSGF...
By Joanne Frearson
HSBC is set to launch the latest issue of its Capital Secured Growth Funds (CSGF).
The Dublin domiciled funds are listed on the Irish Stock Exchange and has Ucit's approval so the product can be distributed in Europe. The product is also approved by the Financial Services Authority for sale in the UK.
In this issue of CSGF, investors will have the opportunity to invest in three new options, the Nasdaq Annual Growth, the World Growth and the European Growth funds.
The Nasdaq Annual Growth Fund is biased towards industries such as computer hardware, telecommunications and biotechnology. The fund is linked to the Nasdaq 100 Index which represents the largest and most actively traded non-financial stocks listed on the Nasdaq Stock Exchange.
The investment term is four years and investors will receive their initial investment back in full, plus annual growth of up to 23%. The World Growth Fund has performance linked to the FTSE 100, S&P 500, Nikkei 225 and the Dow Jones Euro Stoxx 50.
At the end of the four year investment term, investors will receive their initial investment back in full, plus an additional return of 70% (for sterling and dollar investments) and 60% (euro investors) of any growth in the indices.
The European Growth Fund links returns to the DowJones Euro Stoxx 50 Index. Investors receive their initial investment back in full, plus an additional return of 70% of any growth in the index at the end of the four year investment period.
Martin Spurling, senior international investment sales manager, said: "The fund initially invests in medium term notes which have a rating of at least A or A2 as determined by either Standard & Poor's or Moody's Investors Services. This gives you the capital security of the investment."
Investment in the fund is open from 26 January to 23 March 2001. Bonus shares are available if the investment is made prior to 9 March 2001. Commission for intermediaries is 2.5%.
Exit fees and conversions
Initial FOC of 0.6%
Former PFS president
Last commission convened in 2002