Societe Generale is offering two open-ended equity funds which carry a 5 per cent annual payout regardless of market conditions. The funds, known as Global Titans and Asian Power, will be on offer until the end of the month, with the launch date scheduled for November 5. Investors must commit to a three-year investment cycle and will receive the 5 per cent payouts at the end of each year. The payouts are calculated on the initial offer price of the units. Each fund will invest in 50 stocks at the start of the investment cycle. At the end of each month during the first year the poorest performing share will be deleted from the portfolio, leaving a total of 38 stocks. No deletions will take place during the second year. On maturity, the 19 best performing stocks will be removed from the portfolio. The net asset value of the fund will be calculated on the remaining 19 stocks. The product is managed by Lyxor Asset Management, a 100 per cent owned subsidiary of Societe Generale. The funds carry a 5 per cent subscription charge, and 1.5 per cent annual fee, but no realisation charges.