bank introduces capital secured products offering exposure to asia commodities or ftse 100
HSBC Bank International has launched five capital secured growth funds - China Bonus, Asia Opportunity, Japan Growth, Energy Bonus and the Online FTSE 100.
The vehicles offer exposure to the Asian markets, commodity sector or the FTSE 100 and all funds provide a full capital guarantee if held until maturity.
Subscriptions are until 26 September and the minimum investment is £5,000 or currency equivalent.
The China Bonus fund tracks the FTSE Xinhua China 25 index over five years. It offers a minimum return of 9.75% for sterling, 10.25% for dollar and 8% for euro investors. The initial charge on the fund is 6%.
The Asia Opportunity fund tracks the MSCI Singapore and the MSCI Taiwan indices and will run for two-and-a-half years.
Sterling investors will receive returns of 27% if both indices grow by 15%, while dollar depositors will receive 30%. The initial charge on the fund is 4.8%.
The Japan Growth fund tracks the Nikkei 225 and has a participation rate of 60% for sterling and 65% for dollar investors. The initial charge is 4.15%.
By comparison, the Energy Bonus fund invests in 16 stocks, rather than an index, Reamonn O'Sullivan, head of product communications at HSBC Bank International, said it had taken this option because investing in indices was too rigid.
He added: "The fund includes companies such as oil producer Exxon, which has been profitable on the back of higher commodity prices."
The fund will run for three-and-a-quarter years and investors will receive an income of 4% in years one and two. The initial charge is 4.4%.
O'Sullivan said: "Overall investors will receive 50% of growth in the stocks minus the amount they receive as income."
The Online FTSE 100 fund, which is only available through HSBC's website, will run for three years and tracks the FTSE 100.
Bonus shares worth 0.61% of initial investment for sterling, 0.69% for dollar and 0.35% for euro are available on all funds until 7 August, reducing to 0.39% for sterling, 0.44% for dollar and 0.22% for euro after this date until 28 August.
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