HSBC Bank International has rounded out its range of capital secured growth funds with the introduction of the Pan European growth fund.
One of three recent launches, this fund is aimed at experienced investors looking to invest in Europe. It is a Ucits that is based in Jersey and is available to both UK and non-UK residents.
Pan European growth will invest in a trio of indices, the FTSE 100, the Dow Jones EuroStoxx 50 and the Swiss Market. Investors will be able to get a maximum of 70 per cent of any growth in the indices over a four-month period.
Like the other funds in the series, the original capital invested s will be protected. This will be achieved by investing in the corporate bonds offered by financial companies such as Halifax, Royal Bank of Scotland and Britannia with a rating of A or AA. Some of the money will also be invested in Eurodollars.
Although Europe is not in recession, a market downturn is seen as likely following a period of market volatility which has lasted throughout 2001. Another problem for Europe at the moment is the weakness of the Euro, which has passed from one low point to another since its launch.
Over a four-year period from July 24 1997 to July 25, 2001, the FTSE 100 index went from 4862.85 points to 5275.7 points, the Swiss Market Index went from 5849.0 to 6668.2 points and the Dow Jones EuroStoxx 50 went from 2646.19 to 3736.03.