HSBC launches capital secured funds

HSBC Global Asset Management (International) Ltd has launched three new capital secured funds within its 'Foundation 4' range. Foundation is designed to protect the initial investment amount and offer returns linked to carefully selected market opportunities.

The funds are the Global Infrastructure Growth Fund, the Global Emerging Markets Growth Fund and the Food and Water Bonus Fund.

The Food and Water Bonus Fund offers exposure to a basket of 20 food and water-related stocks with the potential for a bonus to be paid at each anniversary over the four-year life of the product. This fund is available in US dollars.

The Global Infrastructure Growth Fund and the Global Emerging Markets Growth Fund offer exposure to specific investment themes via market indices. The Global Infrastructure Growth fund is available in sterling with a five-year investment period while the Global Emerging Markets Growth Fund is US dollar denominated and has a six-year investment period.

Funds within the Foundation range are likely to have wide appeal. For new investors, these funds offer the benefits of exposure to equities, while providing the peace of mind of protection for the capital which is however not guaranteed.

For experienced investors, the funds can provide access to markets they may otherwise be unable to tap into, such as Global Emerging Markets or Global Infrastructure, as well as introducing a capital secured element within their portfolio.

HSBC Securities Services (Malta) Ltd managing director Charles Azzopardi said: "HSBC Global Asset Management is a leader in emerging markets, with assets of over US$93 billion in such markets. As the local representative of the HSBC capital secured funds, we are able to access this expertise for the benefit of our customers."

The new funds are available up to August 26. Minimum investment varies according to the fund, but starts at Stg/US$5,000.