HSBC is marketing Canada's first Guaranteed Investment Certificates (GIC) linked to the S&PBric40 index within its monthly Stock Market GIC series. This is also the first product in Canada to be uniquely linked to the emerging market benchmark.
Bric Global 59M (59 months) and Bric Global 3YR and are growth products with a 100% minimum capital return plus 65% and 35% participation in the index, respectively. Both require a minimum investment amount of C$1,000 ($988).
The longer product is the first in HSBC's GIC series with a tenor of more than four years, while the emerging markets theme continues the provider's move towards less developed markets made earlier this year, when it rearranged its Asia basket, removing Japan and including the Hang Seng, MSCI Singapore, Kospi200 and MSCI Taiwan. In November a 'global' option comprising US, European and Asian markets was discontinued.
HSBC has twice used the S&PBric40 as a basket component - for Global Opportunity Deposit Notes S1 (USD) and Global Index Selector Deposit Notes S1 (USD) in 2008 and 2009, respectively.
Other banks to use a Bric theme in Canada this year include National Bank of Canada in Bric Recovery Plus Note Securities S1 linked to the Claymore Bric ETF and Bank of Montreal in Bric Currency Linked Deposits S1 (Bric currencies versus USD). Both are five-year growth products.
The two new HSBC products are available now in Recent Additions (Canada).