“Volatility in the equity markets is increasing, due to confusing signs from the economy and lower confidence from investors following accounting scandals,” commented Nicolas Reille, senior vice-president, structured products, Asia ex-Japan at SG in Hong Kong. “Therefore we have been working on designing a structure that allows investors to benefit from this volatility.”
The fund offers two capital guarantee alternatives. One with a 100% capital guarantee and an estimated participation rate of 90%, the other with a 2% guaranteed coupon and a participation rate estimated at 45%. The fund’s introduction in Hong Kong follows its launch in Singapore three months ago, distributed through DBS Asset Management.