HSBC launches two new funds

The European Bonus Fund and the US Growth Fund is designed to provide investors with the security of capital protection, a minimum return and the potential for additional bonuses at the end of the five-year term.

The US Growth Fund invests in the S&P 500 Index and features an innovative new variable lock-in feature, designed to capture the highest level of growth, subject to a maximum return of 66%, over the five-year investment term. Investors also benefit from a minimum return of 10% as well as the knowledge that their original capital is secure.

The European Bonus Fund is linked to the performance of five equally weighted major European stock market indices. This fund is designed to provide investors with capital security and the greater of a minimum return (8.3% for US dollar investments, 10.5% for sterling or 7.0% for euro), or an unlimited return based on five potential bonuses.

The funds will be available from 20 September until 2 November 2004, or earlier if over-subscribed.

HSBC's Capital Secured Growth Funds have recently been recognised by this year's Offshore Fund and Product Awards for 'passing the benefit of HSBC's structured product expertise to clients without demanding unreasonable fees in return'.

Kevin Portman, HSBC Bank Middle East Limited's Regional Sales Manager Financial Planning Service, said: " Demand for capital secured products is stronger and through our regular launches we can update our products, and bring the research capabilities of one of the world's largest financial organisations to our customers on an ongoing basis.

"The funds are designed for the full spectrum of investors - ranging from first -timers, who want to move away from low interest rates - to the more experienced, who want to create a firm foundation for their future, by investing in funds with growth potential and capital security."

The new European Bonus Fund reflects the resurgence of five key European economies, coinciding with the expansion of the European Union and increasing signs of economic recovery. Alternatively the US Growth Fund provides investors with the opportunity to benefit from an innovative product and the potential growth in the world's largest economy.

Customers interested in finding out more about the US Growth Fund and European Bonus Fund can contact HSBC's Financial Planning Advisers at their nearest branch.