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HSBC-Link Ethical Capital Protected Fund
Smart Investing for all market conditions
Singapore's first Takaful equity fund specially structured with a protection strategy to limit the impact of any adverse equity market movements. In a good market the fund aims to deliver good potential returns, while in a declining market it aims to protect against major falls.
The fund is suitable for people who:
Seek investment in accordance with Islamic Principles.
Would like to diversify your investments in growth areas of the world economy.
Are prepared to take a moderate degree of risk with potential downside managed through a protection strategy.
About the fund
First Takaful fund in Singapore with a protected equity strategy.
The Islamic Advisory Board (IAB) guides the management of the fund in terms of investment and operational processes in line with Islamic principles.
The fund aims to limit the impact of any sharp falls in the global equity market through the use of a protection strategy which is continually re-balanced.
The fund offers access to opportunities of investing in strong companies round the world with superior management and long-term growth strategies.
This is an insurance-linked policy fund and can be invested in only through our investment-linked plans.
Why invest in HSBC-Link Ethical Capital Protected Fund
Equity markets can offer exceptional growth, but in volatile market conditions most of us are cautious about investing.
How do I invest
You can invest in the HSBC-Link Ethical Capital Protected Fund using Cash or SRS.
With effect from 1 October 2008, HSBC-Link Ethical Capital Protected Fund will cease to accept subscriptions of new CPF monies.
Liquidity for your investment
Your money is not tied to any fixed term when you invest in this fund through our investment-linked policy. You can choose to withdraw your investment at any time*.
Free fund switches
You can have unlimited switches between funds available under the investment-linked plans. This is to ensure your portfolio objective is aligned with your investment objective, which may change along the way.
Tax free returns
Under the current Singapore tax laws, returns from the HSBC-Link Ethical Capital Protected Fund are not subjected to income tax.
Act now
Your investment can start from as little as S$50 a month or a single contribution of S$9,000.
You can even top-up your investment over time. Speak to our financial planner or appointed distributor to find out more about the fund.
Call us at (65) 6225 6111 for more information!
How it works
| Fund details | |
| Investment Objective The objective of the fund is to achieve medium to long-term capital growth through investing in a combination of Shariah compliant global equities or funds and cash investments. The fund seeks to ensure that 80% of the capital invested will be preserved against market downturns over any one-year investment period. |
|
| Launched By | HSBC Insurance (Singapore) Pte. Limited |
| Launched On | 02 May 2005 |
| Fund manager | HSBC Global Asset Management (Singapore) Limited# |
| Benchmark | Customised index. 70% of the performance of Dow Jones Islamic Titans 100 Index (less expenses of 2.0% p.a.) in Singapore dollars. |
| Currency Base | Singapore Dollar |
| CPF Risk Rating | Medium to High Risk / Broadly Diversified |
| Investment-Linked Plans Available | Takaful investment-linked plans • Takaful Asset Manager II - Single Contribution Plan • Takaful Warisan - Regular Contribution Plan (Protection) Non-takaful investment-linked plans+ • Growth Cultivator • Growth Manager • Life Manager Plus • Asset Manager II |
| Minimum Regular Contribution | S$50 Cash |
| Minimum Single Contribution | S$9,000, Cash or SRS |
| Minimum Top Up (subsequent) | $500 per top-up |
| Fund Valuation | Daily (except weekends and public holidays) |
| Prices Published In | • The Straits Times • The Business Times • Berita Harian • Latest Fund Prices |
| Unit Allocation / Surrender Pricing Basis | "Next Determined" Unit Price |
| Fund Switch | Unlimited free switches between funds available under the investment-linked plans. |
| Charges (Wakalah fees) | |
| Bid / Offer Spread^ | 5% |
| Management Fee (p.a) | 1.5% |
Note:
* Full or partial withdrawal can be made provided there is enough cash value in your investment-linked policy plan at the time of surrender. Your surrender value will be based on the next determined bid price of the fund. An early termination of the policy will usually involve high costs and the surrender value payable may be less than total contribution paid.
# HSBC Global Asset Management (Singapore) Limited is formerly known as HSBC Investment (Singapore) Ltd.
+ Please note that only the HSBC-Link Ethical series of investment-linked funds are fully Shariah compliant. If you invest in the HSBC-Link Ethical series of investment-linked funds via non-takaful basic plans, the entire contract will not be deemed a fully Shariah compliant contract as the basic plans do not adhere to Shariah requirements/guidelines.
^ For all Single Contribution (Takaful Asset Manager series) and Recurring Single Contribution (Takaful Anugerah) investment-linked insurance products, bonus units of 2.11% will be given. Net sales charge of 3% applies.
All contributions received from Takaful participants will be invested strictly in accordance with Islamic principles. The IAB has the full right to inspect or review the books and records of the Takaful business to ensure compliance with Islamic principles.
Principles of Shariah governing HSBC-Link Ethical Capital Protected Fund
For the HSBC-Link Ethical Capital Protected Fund, the protective strategy is done via a more cost effective method of dynamic asset allocation between Shariah compliant funds (or stocks) and Islamic cash instruments.
The fund will continue to select only investments in shares that meet international standards of Shariah acceptance. The fund will benefit from an annual Shariah audit of compliance as well as replacement of some financial instruments with more direct investment management in line with the wider international standards on Shariah law.
Important notes
Investor should note that there is no guarantee on the capital and returns. The actual returns depend on the actual performance of the underlying investments.
The past performance of the fund manager is not necessarily indicative of its future performance.
Investor should read the latest fund fact sheet, fund manager's report, fund summary and product summary on investment-linked plans for details before deciding to invest.
This information is subject to change.
This information is not to be regarded as an invitation or recommendation by us to buy the fund. You should seek advice from a qualified adviser.
