HSBC has launched the Amanah Dynamic Allocation Shield Fund, the fifth issue in the Shariah compliant HSBC Amanah Principal Protected Fund series. The Fund, which has a total life of five years, will be available from November 1, 2003, until May 31, 2004.
The fund, which has been approved by the HSBC Shariah Supervisory Committee, allows investors to invest in equity markets whilst limiting their exposure to losses.
Investors in the HSBC Amanah Dynamic Allocation Shield Fund will have the opportunity to liquidate their investments at current prices each year without any exit charge, and at the same time benefit from a high degree of capital protection at the end of the recommended five-year investment horizon.
The Fund is designed to cap losses at a maximum of 10 percent of the initial capital invested in case of equity market falls, so that investors can rest assured that at least 90 percent of their investments are safe. This initial capital protection is further enhanced through an annual profit lock-in mechanism which captures a portion of the eventual gains accrued to the fund.
The fund will invest in a diversified portfolio comprising up to 60 international companies selected from the Dow Jones Islamic Market Index and low risk Commodity Murabaha transactions. The balance between equity and non-equity investments will be constantly adjusted through a market sensitive Dynamic Allocation Policy designed to increase the exposure to equities when they are gaining in value, and to decrease equity investments when their value is falling.
In addition to the HSBC Amanah Dynamic Allocation Shield Fund, HSBC is currently offering the latest issue of its Capital Secured Growth Funds. The new issue, which is available for a limited period, includes two funds designed to give customers 100 percent capital security and capture potential growth. Furthermore, one of these funds offers a minimum return of at least 9.5 percent at the end of the investment term. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
