HSBC launches global emerging markets multi-asset income fund

Increasing contribution of emerging markets to global economic growth presents attractive opportunities, says HSBC

HSBC Global Asset Management has announced the debut of the HSBC Global Investment Funds − Global Emerging Markets Multi-Asset Income in Hong Kong.

The fund aims to provide income and capital growth through an active asset allocation in a well-diversified global emerging markets portfolio invested across equities, bonds and currencies, enabling investors to participate in the return and yield opportunities offered by emerging market assets whilst at the same time spreading investment risk, according to HSBC.

The emerging markets have become an economic powerhouse making a substantial contribution to overall global growth. These markets have growing middle classes and changing demographic trends that favour consumption and investment; EM growth is expected to reach 4.8% in 2018, driven mainly by China, India, Brazil and Russia.

David McNay, HSBC Global Asset Management, manager of the fund, says, “Over the past decade, emerging markets have become a key driver of global GDP growth. We expect this strong performance to continue, driven by several factors including favourable demographics, technological improvement, investment and consumption from growing middle classes. Furthermore, as emerging economies evolve, they tend toward stronger governance, legal frameworks and greater institutional stability. Such pro-market reforms will also provide support for long-term investors.”

Alison Brown, head of sales, wholesale business, Hong Kong and China, HSBC Global Asset Management, says, “The global emerging markets provide an exciting opportunity for investors and they can now access these opportunities through a true multi-asset emerging market vehicle with a “balanced” risk profile.”

The fund is now available to the retail investors in Hong Kong. Its base currency is USD; share classes are also available in other currencies including HKD, AUD, EUR and GBP.

The initial public offering period will end on January 19 2018 and the fund will begin trading on the same day.