Investec takes a new approach to guarantees

Investec Asset Management is rolling out a new guaranteed fund to Hong Kongers but with an innovative structure designed to be more readily grasped by novice investors. Mainly thanks to low interest rates, guaranteed funds have been a massive hit this year, generating over $2 billion in sales and making bank deposits unattractive. With the United States Federal Reserve Bank slashing rates further in the wake of the September 11th terrorist attacks, Hong Kong annual deposit account interest rates have fallen to 0.5%, driving even more first-time users to the mutual funds market.