Allianz Dresdner Asset Management has launched a guaranteed fund designed for cautious investors who also want exposure to Hong Kong shares.
The Dresdner RCM Hong Kong Select Capital Fund will offer a 10 per cent return over five years, a capital guarantee at maturity, and potential additional gains linked to the performance of an equity basket comprising 10 Hong Kong blue chips.
'The unique structure protects investors from short-term volatility, yet enables then to participate in the upside of the dynamic Hong Kong economy without risk of capital loss,' says spokeswoman Eleanor Wan.
HSBC will act as sole distributor of the fund.
A coupon of 2.5 per cent will be paid out annually over the first four years of the fund. The stock basket will include 10 Hang Seng Index constituents, most of which are selected for their growth potential.
The fund will begin dealing on January 19 and will carry a minimum subscription of US$3,000.
