ABN AMRO keeps new fund short

But is it sweet?

Competition among fund managers in Hong Kong to attract retail money into guaranteed mutual funds is forcing bigger guarantees over shorter amounts of time.

ABN AMRO Asset Management is now offering a fund that guarantees 108% of the principle, which is at the high end of the range, and only over a maturity of 2.5 years, which is at the short end. More money sooner, in other words.

It is a foreign exchange product based in Australian dollars, so the 108% guarantee just pips six-month bank deposit rates in Australia on a per annum basis, and outpaces six-month Hong Kong bank deposit rates by a mile.

Like with all guaranteed funds, however, a savvy investor...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222