Comprehensive wealth management products

You can maximize your wealth potential by choosing from our wide range of investment products, product solutions that suit your investment objectives and risk appetite. Our exclusive investment services for Premier customers include Structured Products Exclusive Placement and Bond Sourcing on Request. Other investment products and services at your fingertips include a range of structured products with tailor-made features, which will help you enhance your potential returns.

Structured Products

You can maximize your wealth potential by choosing from our wide range of investment products, product solutions that suit your investment objectives and risk appetite. Our exclusive investment services for Premier customers include Structured Products Exclusive Placement and Bond Sourcing on Request. Other investment products and services at your fingertips include a range of structured products with tailor-made features, which will help you enhance your potential returns.

A structured deposit offers you the opportunity to earn higher returns than a traditional foreign currency time deposit.

You take a directional view on AUD, GBP or EUR against the USD exchange rate. Interest earnings will depend on the derived / fixed exchange rate at maturity in relation to the rate anticipated. (Trigger rate) and preset at the time of opening/investing in a tranche.

The product offers many benefits:

• Higher returns
• The deposit can be structured to give a guaranteed minimum interest
• No subscription or management fees
• In the event of sudden financial need you can borrow up to 90% of the value of your deposit as an overdraft
• 100% protection of the capital

Deposit size is USD100,000

Dual Currency Deposit

Why should I opt for a Dual Currency Deposit (DCD) with HSBC?

• It offers you a chance to enjoy potentially higher returns as opposed to the traditional local or foreign currency savings or time deposits
• We offer you an option of 8 major currencies to choose from (for both deposits and linked currencies)
• Investment tenures ranges from one to three months
• Committed interest payment at maturity irrespective of whether the maturity proceeds are paid in the deposit currency or linked currency
• Enjoy maximum financial flexibility with a Sri Lankan Rupee credit facility of up to 85% of the deposit value.

What is a Linked Currency?

Linked currency is the currency that you pair your deposit currency with in a DCD. It should be a currency which you are comfortable to take a view on, based on how it will perform against your deposit currency.

Would a Dual Currency Deposit meet my investment criteria?

A DCD is likely to be suitable for you if you:

• Have a high risk appetite
• Are willing to hold either the deposit or the linked currency
• Have an actual need to hold the linked currency and look forward to purchasing it at a more favorable exchange rate (compared to the spot rate on the trade date)
• Believe the enhanced yield justifies any potential currency depreciation

Treasury bonds/ Treasury bills

Treasury Bonds / Bills offer you potentially higher returns with stable income.

Treasury bonds

Treasury bonds are long-term negotiable instruments issued by the Central Bank of Sri Lanka (CBSL) on behalf of the government ranging from 2 to 20 years. A Treasury bond's features are different to that of a Treasury bill. Treasury bonds carry a coupon (expressed as a percentage of the face value at the time of issuing), which is paid semi-annually. The interest rate the investor would receive depends on the current market rates. The market rate might be higher or lower in comparison to the coupon rate. If the market rate is higher than the coupon interest rate, the price (investment value) the investor will be paying will be lower than the face value.

Treasury bill

Treasury bills are short-term negotiable instruments issued by the Central Bank of Sri Lanka (CBSL) on behalf of the government with a term of one year or less. Treasury bills are sold at a discount from face value and don't pay interest before/at maturity. The interest is the difference between the purchase price of the bill and the amount that is paid to you at maturity (this amount is the face value). At present CBSL issues 3, 6, and 12 month tenors at the auction.

The mandatory requirements to invest in Treasury Bills / Bonds through HSBC are;

- Opening an account with the Central Depository System (CDS)
- Provide standard settlement instruction form
- Master repurchase agreement (for renewals in repos) through us

Note: The price of bonds can and does fluctuate, and any individual bond may experience upward or downward movements. There is an inherent risk that losses may be incurred rather than profits made as a result of buying and selling bonds.

The holder of bonds bears the credit risk of the issuer and has no resource to HSBC unless the latter itself is the issuer.

Re-purchase agreement (REPOs)

A Repo has a dual security feature, where the investor assumes the credit risk of HSBC and the underlying security. The duration between 1 day to the maturity of the Treasury bill/bond. For the investor it offers flexibility, particularly if the investment period is very short-term.

You can invest up to a maximum duration of 12 months with HSBC in Repurchase Agreements.

Commercial Paper

Commercial Papers* is a short-term debt instrument issued by corporates to fund their short-term borrowing requirements. According to the Central Bank of Sri Lanka (CBSL) a Commercial Paper shall take the form of a Usaunce Promissory note negotiable by delivery, or endorsement and delivery, in accordance with the Bills of Exchange Ordinance. Although the CBSL has no jurisdiction over promissory notes, they have issued detailed guidelines to commercial banks supporting such Commercial Papers issues.

The most popular form of credit enhancement is by way of bank guarantee. HSBC Guaranteed paper will be traded in the market as HSBC credit rather than the issuer's credit.

*Subject to availability

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Disclaimer

The information provided is intended as a general guide for reference. Benefits and features may be subject to local country regulatory restrictions. Please refer to the Premier Service guide.

Need more information?

For further information, please talk to your Relationship Manager, call our Customer Service Centre on 4 4722 72 or stop by at your nearest Branch. You could also contact us via e-mail wealthmanagementdeskcbh@hsbc.com.lk