Jersey-based HSBC Bank International is thinking globally with the introduction of the world growth fund.
Designed as a Ucits, the fund will invest in four major indices, the FTSE 100, the S&P 500, the Nikkei 225 and the Dow Jones Eurostoxx 50. It is aimed at UK and non-UK investors who are looking for growth.
Investors will be able to get up to 70 per cent of any growth in this basket of indices, with a minimum return of at least their original capital. This will be achieved by HSBC International Bank buying either Eurodollar bonds or corporate bonds issued by banks that have an A or AA rating. Some of these banks include ones such as Abbey National, Bank of Scotland and Alliance and Leicester.
All four of these indices cover areas that have recently been experiencing volatility. The UK and US may be seeing the arrival of an economic downturn, which might drag in Europe's economy as well. Japan's economy has been in the doldrums for the best part of a decade.
There have been calls for changes in debt laws to reduce or wipe out debts owed by and to Japanese banks. There have also been calls to change the countrys fiscal policy, due to disagreements over whether the zero interest rate policy is working. This is a policy which has seen the Bank of Japan keep interest rates at zero per cent in an effort to kickstart the economy. Demands for the reform of the tax system, following criticism over the level of corporate taxation have also gone unheeded.
Over a four-year period from July 24, 1997 to July 24, 2001, the FTSE 100 index went from 4862.85 points to 5277.7 points, the Nikkei 225 went from 20,286.23 points to 11,891.61 points, the S&P 500 went from 938.79 points to 1171.65 points and the Dow Jones Eurostoxx 50 went from 2639.6 points to 3762.97 points.