BEA Launches the "BEA Capital Guaranteed Coupon Fund"
Hong Kong, 18th July, 2002 ¡V The Bank of East Asia, Limited
("BEA") today announced the launch of a new umbrella unit trust, Bank of East
Asia Investment Series II, which is established in the British Virgin Islands
and authorised by the Securities and Futures Commission in Hong Kong.¡@The first
sub-fund to be launched is the BEA Capital Guaranteed Coupon Fund (the "Fund").
Managed by East Asia Asset Management Company Limited (a wholly-owned subsidiary
of BEA) (the "Manager") and with an investment period of 4.5 years, the Fund
will be available for subscription from 18th July until 22nd August, 2002. Guaranteed
by BEA, the Fund provides investors with 100% guaranteed capital protection1,
and guaranteed 1st and 2nd semi-annual Coupon Payments of 5% per annum and 7%
per annum respectively2. Investors are therefore guaranteed a total of at least
6% return over the 4.5-year term of the Fund.
Investors can also have an opportunity to receive a series of semi-annual Bonus
Coupon Payments, which are linked to the least performing stock of 15 global
stocks (the "relevant stocks") 3 specifically selected by the Manager. From
the 4th coupon and onwards, the Bonus Coupon Payments incorporate a rising lock-in
mechanism. Once the 3rd semi-annual coupon is fixed, the subsequent semi-annual
coupons will not be less than the previous one, irrespective of the performance
of the relevant stocks4.
Denominated in US Dollar, the Fund's minimum subscription amount is US$5,000. There is no preliminary charge for subscription for the Fund. The management fee of the Fund is 0.70% per annum5.
A preferential deposit rate of 4%-5% per annum over BEA base rate will be offered to investors from now on until the end of September 2002 for a one-month local time deposit in HK Dollar or US Dollar with an equivalent amount not exceeding the investors' initial investment amount in the Fund.
To provide customers with financial flexibility, BEA also offers overdraft facilities of up to 80% of the investors' initial investment in the Fund against pledge of their holdings of the Fund.
Disclaimer
The Fund has been authorised by the Securities and Futures Commission ("SFC") in Hong Kong. In granting such authorisation, the SFC takes no responsibility for the financial soundness of the Fund or the accuracy of any of the statements made or opinions expressed in the Explanatory Memorandum of the Fund and such authorisation does not imply that investment in the Fund is recommended by the SFC. Investment involves risks. The value of the investments may go up and down. The Fund is also subject to the credit risks of the Guarantor and the option counterparty as well as the liquidity risk of the underlying investment of the Fund.
| 1 | The guarantee is issued by The Bank of East Asia, Limited. The benefit of the 100% capital guarantee will only apply to investors who hold their Units on Maturity Date. Redemptions before the Maturity Date are fully exposed to fluctuations in the Net Asset Value of the Fund. Investor who redeems the Fund prior to the Maturity Date is subject to an early redemption charge and the redemption value may be lower than the 100% guaranteed amount. |
| 2 | Each Guaranteed Coupon Payment will only be applicable to Units held by investors on relevant Guaranteed Coupon Date. |
| 3 | The Manager reserves the right to change the composition of the stock basket comprising 15 global stocks before and after the Inception Date under the circumstances listed in the Explanatory Memorandum of the Fund. |
| 4 | The value of any Bonus Coupon Payment is not guaranteed and is subject to market fluctuations and to the risks inherent in all investments. Any Bonus Coupon Payment may be zero. In the worst case scenario an investor will get a return of 106% of the Issue Price over the investment period. |
| 5 | All fees, including Management Fee, Trustee Fee, Guarantor Fee and the establishment cost of the Fund, for the whole investment period (4.5 years) amount to approximately 4.48% in aggregate and will be charged upfront at the inception of the Fund. Investor who redeems the Fund prior to Maturity Date must bear the total fees and expenses incurring in the whole investment period. |
Please refer to the Explanatory Memorandum of the Fund for full details of the guarantee and calculation of the Bonus Coupon Payment. Please visit BEA's website at www.hkbea.com for details of the Fund and the Explanatory Memorandum of the Fund.
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For enquiries, please contact:
Mr Tony Chan
Manager
East Asia Asset Management Company Limited
Tel : (852) 2842 3454