Global Equity Capital Protector Fund

Global Equity Capital Protector
Exclusively via Hansard International

HSBC Protection - Merrill Lynch Fund Management

Key Features

Strategic allocation to a range of Merrill Lynch Funds
Principal Protection provided by HSBC Bank plc (AA-, S&P rating)
Dynamic Allocation of the Global Equity Capital Protector's assets between Equity and Cash, ensuring a principal protection equal to 80% of the Fund’s highest ever Net Asset Value
No Fixed Term
Daily subscriptions and redemptions
No notice period or redemption penalties
USD denominated
100% initial equity exposure

Fund Objective

The Fund will seek to achieve its investment objective through a dynamic exposure to an "Equity Basket" of MLIM funds investing in global markets (subject to the constraint of protecting 80% of the highest ever Net Asset Value).

The Equity Basket will be selected from a universe of funds managed by MLIM, all of which are Luxembourg domiciled funds authorised pursuant to the UCITS Directive 85/611 as amended (“UCITS”).

The assets of the Fund will be allocated between the "Equity Basket" and a “Liquidity Basket” which may consist of cash, short-term financial instruments and money market funds (Irish domiciled UCITS managed by MLIM). The allocation of the Fund’s assets between the Equity Basket and Liquidity Basket is driven by the HSBC's proprietary "Dynamic Allocation Protection" which is designed to allow for maximum exposure to the Equity Basket, whilst protecting the official NAV per Share against falling below its Protected Level. The allocation is monitored on an ongoing daily basis.

PROTECTION MECHANISM HSBC Dynamic Allocation Protection (DAP)

Principal Protection is achieved through a dynamic allocation of the Fund’s assets between Equity and Cash

The dynamic allocation process is designed to allow Investors to participate in rising equity markets while protecting principal in downward trends. Throughout the fund’s life, re-balancing rules will determine the allocation between Cash and the Equity to ensure that 80% of the highest ever Net Asset Value (NAV) is always protected.

If at any time the NAV falls to a level such that allocation to Cash equals100% of the portfolio, no further allocations to equity will be possible and the Investor will not participate in any future equity appreciation. Some factors determining allocation: Level of stock markets, market volatility, and expenses.

GLOBAL EQUITY CAPITAL PROTECTOR FUND COMPOSITION
MLIIF GLOBAL ALLOCATION	A world of investment opportunity	Managers have the flexibility to move between asset classes, markets and securities to take advantage of the best investment opportunities worldwide.
MLIIF GLOBAL EQUITY DIVERSIFIED	Globalisation– As companies are increasingly competing and operating globally MLIM believe it is important to assess the investment potential of companies relative to their global peer group - best in region does not always mean best in class.	Diversification– Investing globally offers diversification benefits in terms of geography and investment theme.
MLIIF GLOBAL FUNDAMENTAL VALUE	International markets are not perfectly correlated, hence funds with a global focus can provide diversification benefits.	A global "value" approach can provide investors with a lower beta vehicle for investing and also the benefits of diversification in terms of style.
MLIIF GLOBAL OPPORTUNITIES	This Fund enables investors to gain exposure to some of the fastest growing and most exciting companies in the world.	Diversification – Investing both globally and in smaller companies offers diversification benefits in terms of both region and style.
MLIIF WORLD MINING	Positive outlook for commodity prices –Global economic growth should be sufficiently robust to ensure that the supply /demand in-balances i.e the metals and minerals markets remain favourable with positive implications for prices.	Regional and sub-sector diversification – Sector funds offer investors the opportunity to diversify investment away from equity or geographic based asset allocation strategies.
MLIIF WORLD GOLD	Asset diversification benefits – The low correlation of gold and gold shares to the stock market means exposure to gold can provide stability to an investment portfolio during periods of equity market volatility.	Regional and sub-sector diversification – Sector funds offer investors the opportunity to diversify investment away from country based asset allocation strategies.
MLIIF WORLD ENERGY	OPEC is successfully managing the oil supply, underpinning prices. When combined with strong demand through robust economic activity, the outlook for the oil price appears promising.	Specialist sector funds offer investors the opportunity to diversify their investments away from purely regional based allocation strategies. The Fund also offers the benefits of access to specialised mid and small cap energy opportunities as well as exposure across sub-sectors.
MLIIF LATIN AMERICAN	Following strong performance in 2003/2004, we believe that Latin American equity markets continue to represent an attractive investment opportunity.	Political and economic reforms have reduced the overall risk of investing in Latin America relative to other global markets.
MLIIF ASIAN DRAGON	Favourable growth themes – These support our case for strong and longer term growth potential for the economies of the region.	Healthy balance sheets – Many companies across the region have made great progress in restructuring their balance sheets and focusing on shareholder value.

How To Participate In The Global Equity Capital Protector Fund

The Global Equity Capital Protector fund can be accessed by Hansard International's Capital Builder plan.

Capital Builder is recognised as one of the leading offshore savings plans that offers a very competitive charging structure allied to an extensive range of funds from which to choose.

Please contact us to discuss your interest in this fund and we will advise how best to effect your investment.

Global Equity Capital Protector Fund Performance

Please click here and download the latest fund performance bulletin which details not only the Global Equity Capital Protector fund but also the complete range of Hansard International funds.