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HSBC launches fund of funds linked offering


Date: Monday, September 13, 2004

STAIRS C1 available until October 24- HSBC Bank Canada is launching a new investment product with returns linked to a multi-strategy fund of hedge funds managed by Tremont Partners, Inc.- HSBC Structured Alternative Investment Return Securities, Series C1 ("STAIRS C1") offer a return linked to a three times levered exposure -- $1 invested generates $3 exposure. "In today's low interest rate environment, the fixed interest cost, non-recourse leverage and 3-year term of STAIRS provides a unique investment opportunity in Canada," said David LeClaire, senior vp, HSBC structured products group, in a news release. "With the added benefit of tax deferral and RSP eligibility, we believe STAIRS C1 to be a unique alternative investment for accredited investors in Canada." HSBC selected Tremont for its 20 years of experience in fund of hedge funds management, its global investment resources, its focus on risk management, and the firm's commitment to the Canadian marketplace. "We are very pleased with HSBC's issue of STAIRS C1 as it continues to expand Canadian investor's access to Tremont's fund of funds investment approach", said Robert Parnell, president and CEO of Tremont Capital Management Corp., the Canadian subsidiary of Tremont Capital Management Inc. "This Canadian offering continues our firm's history of creating industry-wide innovations that have transformed and shaped hedge fund investing today." STAIRS C1, which are denominated in both Canadian and U.S. dollars, are being offered to accredited investors in Canada through advisors until October 25, 2004. Advisors may register interest via the FundSERV system -- HSP 100 (Canadian dollars) and HSP 200 (U.S. dollars).