HSBC Bank International is set to launch a China fund as well as a fund linked to indices in the US,...
HSBC Bank International is set to launch a China fund as well as a fund linked to indices in the US, UK or Japan in its Capital Secured Growth Fund series.
The China Bonus fund is designed to capitalise on the continued growth prospects of China. It is linked to the FTSE/Xinhua China 25 Index.
HSBC Bank International decided to launch a China fund because the country has seen strong growth in the past few years with GDP being 9.1% in 2003. It has a fifth of the world's population, as well as an emerging middle class and long-term economic opportunities.
The minimum return for the China fund is your money back plus 8% for dollar investments, 10.8% for sterling and 7.3% for euro. If in any period, the lowest monthly performance is positive or zero, a special fixed bonus feature is triggered. This means every subsequent bonus cannot be reduced but further growth can be added.
In the Selected World Growth fund returns are linked to the best performing of one of three specified indices the S&P 500 Index, FTSE 100 Index, and Nikkei 225 Index. Investors can also track the performance of three of the world's largest stock markets, with the final return based on the best performing of the three specified indices.
The minimum return is your money back. The maximum return is your money back plus up to 3% per month in the dollar option or 3.8% per month in the sterling option. It is unlikely these maximum amounts would be achieved every month throughout the investment term.
Dan Massey, head of global funds and insurance at HSBC Bank International, said: "We continue to see a large demand for capital secured products as investors look to benefit from the increasing upturn in global markets, while protecting their capital from any unforeseen market turbulence."
Both investments are for five years and offer a minimum investment. This limited offer opens 26 April and closes 8 June or earlier if oversubscribed.
The products are domiciled in Dublin.
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