HSBC International has launched the first tranche of International Capital Secured Growth Funds (CSG...
HSBC International has launched the first tranche of International Capital Secured Growth Funds (CSGF) to replace the Guaranteed Capital Investment Bonds (GCIB).
Domiciled in Dublin the CSGF is authorised by the Central Bank of Dublin. The Undertaking for Collective Investments in Transferable Securities (Ucits) structure of the CSGF makes it available in more countries than the GCIB was. Countries now included are South Africa and the Far East.
The CSGF is a four-year investment term. However, the structure allows for an early redemption facility so investors can take their money out before the end of the four-year period.
Investors are offered 100% capital security as well as world stock market-linked growth.
Like the GCIB, the CSGF provides the same core benefits of capital protection and unlimited potential stock market growth.
There are three options to choose from UK and Pan European (Pan European Growth Fund), Asian (Asian Growth Fund) and the Nasdaq 100 Index (Nasdaq 100 Growth Fund).
Each of these options are linked to the world's leading stock markets. In all of these commission for investments made by IFAs is 2.5%.
The Pan European Growth Fund is linked to the FTSE 100 and Dow Jones EUROSTOXX 50 indices.
The Asian Growth Fund is linked to the performance of the Nikkei 225 Index, the Hang Seng Index, the Singapore Straits Times Index and the Australian All Ordinaries Index.
While the NASDAQ 100 Index Fund is linked to the largest and most actively traded non-financial stocks listed on the main North American exchanges.
All options offer investors a 100% capital security plus a return equal to 70% of the average growth of the indices.
The minimum investment is £5,000 or $5,000 and the first tranche is available from 22nd September 2000. Bonus shares are available for investors if they make their investment prior to 25th August 2000. Investment returns are made after averaging.
Paul Leech chief executive at HSBC Bank International says: "This fund enables a broader audience including the first time investors from many parts of the Far East, and other countries to enjoy the benefits of HSBC's global experience and knowledge."
He added: "The benefits will range from a global 24-hour telephone service, to commission-free currency and travellers cheques, to restaurant bookings and hotel information."
The increase in minimum AE contributions has had little impact on opt-out rates - with cessations after April increasing by less than two percentage points, data from The Pensions Regulator (TPR) shows.
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