HSBC Launches Emerging Market Debt Funds
Thursday, February 17, 2011

HSBC Global Asset Management has launched two new emerging market debt funds: HSBC GIF Global Emerging Markets Corporate Debt, and HSBC GIF Global Emerging Markets Investment Grade Bond.

HSBC GIF Global Emerging Markets Investment Grade Bond invests in emerging markets sovereign and corporate securities that are investment grade at the time of purchase. The fund utilises a benchmark of 50% JP Morgan GBI-Emerging Markets Global Diversified Investment Grade Index and 50% JP Morgan EMBI Global Investment Grade Index.

HSBC GIF Global Emerging Markets Corporate Debt invests in the debt of companies (both investment grade and sub investment grade) located in, or that carry out a relevant part of their business activities in the emerging markets, and is benchmarked against the JP Morgan Corporate Emerging Markets Bond Index - Diversified.

Both funds are part of HSBC flagship Luxembourg-based Global Investment Funds (GIF) SICAV range, and will invest in both hard and local currency securities.

The funds are managed by a team of investment professionals, led by Guillermo Osses, Head of Global Emerging Market Debt Portfolio Management at HSBC Global Asset Management. This experienced global emerging markets debt team is backed by more than 200 dedicated emerging markets investment professionals in 20 key locations.

The newly launched funds build upon a suite of existing EMD funds offered by HSBC Global Asset Management including HSBC GIF GEM Local Debt, and HSBC GIF GEM Bond. These funds form part of a larger EMD capability at HSBC Global Asset Management, which encompasses more than USD50bn assets under management in this asset class.

Peter Marber, Chief Emerging Markets Business Strategist, said: “The opportunities in the emerging markets corporate debt and investment grade debt space are growing, as the world’s centre of gravity continues to shift toward the developing world.”

Share classes are available for institutional and wholesale investors.

HSBC Global Asset Management had USD103bn in emerging market assets (as defined by the MSCI Emerging Markets index) as at end September 2010. Approximately 50% of these emerging market assets are invested in equity and debt.