The Notes will pay, if held to maturity: i) 100 per cent of the principal amount invested; and ii) a variable return, if any, based on 125 per cent of the aggregate average performance of three equally weighted indices. The increase in value in each index will be measured from its closing level on the index set date (22 February 2005) to the arithmetic average of the closing levels of such index on specified preset quarterly observation dates (22 May, 22 August, 22 November and 22 February in each year). The average performance of the three indices (positive or negative) will then be weighted equally to determine the variable return, if any.
||25 February 2005
||25 February 2010
- Principal protected at maturity
- Eligible for registered accounts
- Linked to three (3) equally weighted indices
- Return based on quarterly averaging
||Index component weight
|DJ Euro Stoxx 50 Index
|Nikkei 225 Stock Index
Are the Notes right for you?
The Notes may be an appropriate investment for you, if, among other things: (1) you are looking for safety of principal if held to maturity; (2) want exposure to an investment that is linked to the performance of three indices; (3) want to diversify your exposure to more than one index; and (4) are investing for the longer term.
The Notes do not provide investors with a return, or income stream, prior to maturity. The effective yield to maturity of the Notes may be less than that which would be payable on a conventional fixed-rate or floating-rate debt instrument. The Notes are generally more suitable for purchasing and holding up to maturity. Potential investors should consult with their own investment, legal and tax advisors to determine the suitability.
Early trading charges/Secondary market
HSBC Securities (Canada) Inc intends, in normal market conditions, but is under no obligation, to use reasonable efforts to provide a secondary price for the Notes as principal, but reserves the right not to do so in the future at its sole discretion, without providing prior notice to the Noteholders. Sale of Notes prior to maturity may be subject to an early trading charge as follows:
Noteholders should carefully review and consider all risks with their investment advisor, including:
- Notes are not insured under the Canada Deposit Insurance Corporation Act
- The principal amount is protected only if Notes are held to maturity
- No assurance is given that the Notes will pay any variable return
- No guaranteed secondary market
- Price or other movements in the instruments comprising the indices are unpredictable
- Conflicts of interest with the calculation agent
Amendments to Notes - The global deposit note filed on CDS representing the Notes may from time to time be amended, supplemented or restated by HSBC without the approval of the Noteholders for the following purposes: (i) ensuring or continuing compliance with applicable laws, regulations, rules or requirements of any governmental authority having jurisdiction over HSBC, (ii) changing the dates on which payments are required to be made to conform with customary settlement practices, (iii) making any modification that would not be prejudicial to the interests of Noteholders in the opinion of HSBC; (iv) making changes or corrections which are necessary or desirable for the correction of typographical mistakes, or are required for the purpose of curing any ambiguity, defective or inconsistent provisions, omissions or errors.
Please do not hesitate to call us at +1 866 511 4722 or send us an e-mail for more information.
Important: Please read the disclaimer carefully.