HSBC to add three tranches of Capital Secured Growth
HSBC Bank International is set to offer three new tranches of its Capital Secured Growth Funds (GSFC).
Three options are available: the World Growth, Pan European Growth and the Nasdaq Plus Growth Funds. The funds are available from 18 June and close on 21 August 2001. All options have an investment period of four years.
Domiciled in Dublin, the funds are targeted towards investors wary of investing in equities at a time of stock market volatility and are designed to provide a mixture of growth and capital protection.
The World Growth Fund provides an opportunity to invest in four of the world's major economies, through the FTSE 100, S&P 500, Nikkei 225 and Dow Jones Euro Stoxx 50.
The Pan European Growth Fund links returns to the performance of the Dow Jones Euro Stoxx 50, the FTSE 100 and the Swiss Market Index (SMI).
In both options at the end of the four-year term, investors will receive their initial investment back plus 70% of any growth in the basket of indices.
The Nasdaq Plus Growth Fund enables investors to take advantage of the growth potential of technology stocks. It will return the initial investment in full plus growth linked to the Nasdaq 100 up to a maximum of 80% for US dollar investors and 70% for sterling investors over the four-year term. Even if the Nasdaq 100 falls, the fund will still pay the capital back in full, plus 10%. Minimum investment is £5,000 or $5,000. Bonus shares will be awarded for early investments. Commission for investments by intermediaries is 2.5% on all options.
Martin Spurling, head of investments at HSBC Bank International, said: 'Investors opting for the Nasdaq option will enjoy capital growth even if the index falls over four years. With many commentators suggesting the Nasdaq will grow over this period, the product is likely to appeal to investors who see the long-term potential of investing in technology.'
HSBC Bank International is a wholly-owned subsidiary of HSBC Holdings.
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