High-rolling Hong Kong investors have a fail-safe option to gamble on global markets - the investment arm of a Luxembourg bank in the territory literally guarantees they will not lose money.
While most funds caution that 'stocks can go down as well as up', BGL Finance (Asia) pledges: 'If you deposit funds with us for two years, we guarantee at least a return of your capital.' Not only that, the Hong Kong-based investment arm of Banque Generale du Luxembourg does not necessarily require investors to front up with any money. It can lend it to you.
'We provide what is called leveraged finance to customers,' Frank Veyder, BGL's chief representative, said.
'We provide the loan to purchase securities and those securities are pledged as collateral against the loan.' Not surprisingly, Hong Kong investors are increasingly turning to this Luxembourg option.
'It is successful,' Mr Veyder said. 'We have trebled our customer base over the past four years and the number of investors is still growing.' In keeping with Luxembourg's secretive banking ethos, he was reluctant to divulge financial details of the operation but Mr Veyder conceded that local funds invested with BGL Finance (Asia) amounted to 'hundreds of millions of US dollars'.
BGL may deal in international investment instruments such as Eurobonds yet, at the same time, it offers advice on Asian stocks, especially in the Hong Kong market.