HSBC International launches two new capital secured funds

HSBC Investment Services (Malta) Limited is promoting HSBC Bank International's two new capital secured funds, the latest in the award-winning Capital Secured Growth Funds (CSGF) series. Both funds offer investors the benefits of capital security, a minimum return and the potential for an additional bonus when held for the full investment term.

The HSBC CSGF series has attracted more than US$3.2 billion in sales to date and in May won Best Offshore Structured Product in the International Investment magazine annual Offshore Fund and Product Awards 2004, held in association with Standard & Poors.

The new funds, the Nasdaq Bonus Fund and the Asia Bonus Fund, will run for five years and aim to reflect the economic strength of the largest companies within the Nasdaq stock market and the growth potential of two key Asian stock markets respectively.

Nasdaq Bonus Fund

As well as minimum returns of 11.5% for US dollar investments, 18% for sterling and 7.5% for euro, investors are offered a starting bonus of 100% on their capital. The bonus may then be reduced during the investment term, depending on the performance of the Nasdaq-100 Index each month.

Asia Bonus Fund

The fund invests in two key Asian stock market indices, the FTSE/Xinhua China 25 Index and the Hong Kong Hang Seng Index, and aims to benefit from the growth potential of the Chinese market and the ongoing economic recovery in Hong Kong.

It is available in US dollars and offers a 'lock-in' bonus feature dependent on the monthly performance of the indices during the investment period. The fund offers a minimum return over the five-year investment period of 10.5%.

Pauline Azzopardi, Wealth Management product manager, said: "We've seen real customer appetite for products that provide minimum returns, so we've opted for this feature to be built into both new funds.

"Although the funds are designed to offer the growth potential of selected stock markets, we have been careful to give investors peace of mind through the combination of capital security and a minimum return on their investment. This, as well as the potential for a bonus at the end of the term, offers investors a hat-trick of benefits."