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Why invest? Asians are good savers. But are cash savings sufficient to meet your needs for the future? Assume two scenarios: (a) you place S$10,000 into a one-year fixed deposit continuously for ten years, (b) you invest S$10,000 into global bonds, global equities and deposits in the proportion of 70%:20%:10% respectively for the same ten years (strategy is rebalanced monthly). Between February 1997 and February 2007, you would have earned 0.5% p.a. in real returns from deposits as inflation would have eroded 64% of your nominal returns. A simple balanced portfolio, on the other hand, would have returned 4.2% p.a.*  Introducing the fund The HSBC Global Reach Fund (’Fund’) is designed to provide benefits that meet your financial planning goals when you make the decision to invest and grow your wealth.
About the fund The Fund invests substantially into three lowly correlated underlying funds (’Underlying’):
SINOPIA will actively allocate between the three Underlying to harness the best performance drivers within each asset class, whilst maintaining a low volatility to ensure capital preservation. These performance drivers have low correlations among themselves so as to support a robust and consistent performance. Act Now
Important notes: * Source: Bloomberg. SINOPIA Asset Management, net of fees. Global equities represented by SINOPIA Global Equities, global bonds represented by Actiprimes Obligations. Period: February 1997– February 2007. SICPI Index (measure of inflation), SIBOR 12m Index – 1% (proxy for one-year fixed deposit returns). # Cash is represented by One-Year SIBOR rate. This document is prepared by HSBC Investments and the opinions expressed are subject to change without notice. The opinions expressed herein should not be considered to be a recommendation by HSBC Investments (Singapore) Limited to any reader of this material to buy or sell securities, commodities, currencies or other investments referred to herein. It is published for information only and does not have any regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors may wish to seek advice from an HSBC Financial Consultants before purchasing units in the fund. In the event that the investor chooses not to seek advice from an HSBC Financial Consultant, he should consider whether the fund in question is suitable for him. The past performance of any fund and the manager and any economic and market trends/forecast are not necessarily indicative of the future or likely performance of the fund. Value of investment and units may go down as well as up, and the investor may not get back the original sum invested. Investors and potential investors should read the risk warnings in the Singapore prospectus, available at HSBC branches before investing. Changes in rates of currency exchange may affect significantly the value of the investment. HSBC Investments (Singapore) Limited, or its ultimate and intermediate holding companies, subsidiaries, affiliates, clients, directors and/or staff may, at any time, have a position in the markets referred herein, and may buy or sell securities, currencies, or any other financial instruments in such markets. Issued by The Hongkong and Shanghai Banking Corporation, which is incorporated in the Hong Kong SAR with limited liability. |
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