Bank's Three new products guarantee return on original capital
HSBC Bank International has launched three capital secured growth funds that can be linked to either the Nasdaq-100, a basket of Asian indices or the Dow Jones Global Titans index.
Each product has a five-year investment term. The minimum investment for each fund is $5,000 and is also available in sterling or euro. Investors are guaranteed to receive their original capital back on all the funds.
The Nasdaq option, which is linked to the performance of the Nasdaq-100 index, is designed to offer a minimum return of 8.25% for dollar investors, 9% for sterling and 7% for euros, plus an unlimited return based on five potential annual bonuses that are linked to the performance of the index.
HSBC believes the Nasdaq-100 should perform well over a five-year time horizon. Although the index offers a degree of volatility, the bank expects to see decent returns.
The Pacific Partners fund is linked to the performance of three Asian indices – the FTSE/Xinhua China 25, the Hang Seng and the MSCI Singapore Cash. It is structured around the potential growth of China over the short to medium term. The indices selected were ones that HSBC believe would gain the most from the growth of China.
The fund also gives investors the opportunity to benefit from a final performance bonus based on growth. Additionally, it locks in growth should the total growth of these indices on a quarterly basis reach 18% or, subsequently, 36%.
The Titans fund invests in the growth potential of 50 of the companies listed on the Dow Jones Global Titans index, including names such as Microsoft, Nokia and Toyota. HSBC believe that companies in the index have pricing power over their competitors and are likely to grow over the near term.
Dollar investors have the opportunity to earn 75% of the index growth over the investment period, while sterling investors have the opportunity to earn 90%.
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