Hang Seng Investment in Hong Kong has launched two 100% capital guaranteed funds based on the FTSE Xinhua China A 50 Index. Details of the growth and income products were not available as SRP went to press, though a release from FTSE Xinhua said one of them pays a 12% dividend.
FTSE Xinhua Index Limited is a joint venture between FTSE Group and Xinhua Finance. Its FTSE Xinhua China A 50 Index is traded in real time and comprises the top 50 ‘A’ Share companies listed on the Chinese exchanges.
FTSE Xinhua Index md Zhu Shan said “…the adoption of the FTSE Xinhua China A 50 Index for the new Hang Seng 100% capital guaranteed funds is a further endorsement of growing demand...”
Commodity options
More adventurously, HSBC has launched a commodity-linked capital guaranteed fund in Hong Kong. The dollar-denominated HSBC Capital Guaranteed Global Treasures Fund will invest in five equally-weighted global commodities – gold, silver, aluminium, copper and crude oil – paying a guaranteed cash dividend of 8% (2% pa), and a potential bonus at the end of the product’s four-year life.
The product invests in a structured note, through which 3.5% of the assets will be invested in commodity options, generating an estimated 40% participation in the performance of the basket at maturity.
Dawn Evans, senior sales manager Asia Pacific, Global Funds and Investments at HSBC said she thought commodities have good growth potential, given their tendency to show good returns in periods of high and rising economic activity. “We don't think demand will slow down,” she said.
Minimum investment is $3,000. Product closes 13 August.
