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Foundation
Open to investment until 26 August 2008
Foundation is a capital secured investment, which means all funds are designed to return a minimum of your capital at maturity. Foundation also offers you the potential for growth linked to a stock market index or company stocks.
If you are new to investing and seeking security and growth potential or an experienced investor and need a capital secured element for your portfolio, Foundation could be your ideal investment solution.
Take a look at the funds in this Foundation launch:
Infrastructure has become increasingly popular and has emerged as a major investment class. Your returns will be linked to the S&P Global Infrastructure Index, providing exposure to 75 companies from around the world across Energy, Transportation and Utilities sectors.
- Minimum investment £5,000
- Investment period of 5 years
Since the mid 1990s, economic growth in global emerging markets has gathered speed, and these countries are set to be the engine of future global growth. (Source: HSBC, March 2008). This fund will link your returns to the HSBC Optimised GEM Index, representing the largest companies from the major emerging markets.
- Minimum investment $5,000
- Investment period of 6 years
This fund offers the potential for a bonus on each of four anniversaries, dependent upon the performance of a basket of stocks linked to food and water related companies.
- Minimum investment US$10,000
- Investment period of 4 years
Foundation is a fixed term investment, so you should be prepared to hold your investment for the full term. If you cash in some or all of your investment before the maturity date, you may not receive your capital back in full.
HELP ME DECIDE
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Supplement (Legal Information)
Click the 'plus' symbol or text for more information.
Click the 'plus' symbol or text for more information.
Bonus Share Details
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Sterling Investments
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Annual equivalent (in bonus shares):
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Bonus shares of:
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5 June to 25 June 2008
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4.50%
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0.82%
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26 June to 16 July 2008
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4.50%
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0.57%
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17 July to 6 August 2008
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4.50%
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0.31%
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US Dollar Investments
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Annual equivalent (in bonus shares):
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Bonus shares of:
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5 June to 25 June 2008
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1.50%
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0.28%
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26 June to 16 July 2008
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1.50%
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0.19%
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17 July to 6 August 2008
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1.50%
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0.11%
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For example, if you’re investing in sterling between 5 June and 25 June 2008, you would receive additional bonus shares of 0.82% of your original investment.
To calculate this, we took an annual interest rate of 4.50% and scaled it down to represent an equivalent in bonus shares to the interest that could have been received had the subscription been received the day before the end of the offer period.
| Investment Period | 4 years – your investment will mature on 4 September 2012 5 years – your investment will mature on 3 September 2013 6 years – your investment will mature on 3 September 2014 |
| Supplement | This document provides the legal information relating to the funds and your application. |
| HSBC Optimised GEM Index | The HSBC Optimised GEM Index is designed to gain exposure to global emerging markets. Up to 50 of the largest and most liquid, tradable equity stocks within the ten largest emerging economic regions were selected, in order to capture high diversification across geography and industries. |
| Standard & Poor’s (S&P) Global Infrastructure Index | The S&P Global Infrastructure Index provides exposure to 75 companies from around the world across three distinct infrastructure clusters, namely Energy, Transportation and Utilities. |
| Basket of stocks | There are 20 stocks in the basket composed of food and water related companies, for example: Cadbury plc, Kraft Foods Inc., Tesco plc, United Utilities and Wal-Mart Stores Inc. |
Past performance is not an indication of future performance.
SOME THINGS YOU SHOULD KNOW BEFORE YOU INVEST
Global Emerging Markets Growth Fund only: Please note, the markets in the HSBC Optimised GEM Index are regarded as emerging markets.
Exposure to emerging markets generally entails greater risks than exposure to well-developed markets, including potentially significant legal, economic and political risks. However, this fund is designed to return your capital in full at maturity regardless of index performance.
Global Infrastructure Growth Fund and Global Emerging Markets Growth Fund only:Averaging occurs weekly in the final year of the investment period for these Funds and smoothes out index volatility. If the index falls in the final year of the investment period, averaging will produce a higher return in a falling market and a lower return in a rising market.
Your investment will be in the shares of HSBC International Capital Secured Growth Funds plc. The return of your capital and growth is dependant upon financial instruments bought from one or more financial institutions including HSBC Bank plc. For this current issue we will invest 100% of the funds’ assets, minus charges, with HSBC Bank plc, who in turn will invest up to 92% of the funds’ assets with other financial institutions, leaving 8% invested with HSBC Bank plc. It is only in the event of one of these other financial institutions, or HSBC Bank plc, defaulting on their obligations that the benefits described will not be delivered, however Foundation is not a guaranteed investment.
You should understand that while Foundation offers exposure to various types of assets, it may provide a lower return than you would have received through direct investment due to the cost of capital protection. However, investing in this way is designed to protect you against falls in the stock market at maturity, whereas with direct investment you would be exposed to such falls. If you held shares directly, you would also benefit from the dividends paid by them. By investing in Foundation you will not receive these share dividends.
