HSBC Global Asset Management launches passive fixed income fund
HSBC Global Asset Management has launched the HSBC Global Emerging Market Government Bond Fixed Index Fund, offering investors access to diversified emerging market global debt denominated in USD.
The fund aims to replicate the performance of the JPMorgan EMBI Global Diversified Tax Return Index. It will be domiciled in Ireland under HSBC’s ICAV platform, which facilitates access to funds globally.
Sebastien Faucher, Head of Passive Fixed Income, HSBC Global Asset Management, will lead the fund, which will be managed by HSBC Global Asset Management’s passive fixed income team. The team currently manages approximately USD6.9 billion of assets in different strategies.
The team’s investment approach is based on ‘intelligent indexation’, which focuses on close index tracking and minimising transaction costs. These objectives are achieved by utilising the HSBC Global Asset Management’s active fixed income teams, including credit screening, managing credit events and participation in new issues.
Faucher says: “We have seen strong asset allocator demand for the passive fixed income funds on our ICAV platform, given the current market trend for more affordable building blocks, one of them being Global Emerging Market Government Debt.
“Our long heritage in managing passive investments, coupled with global reach, substantial resources and dedication, gives us the basis to provide our clients with competitive products and the highest level of service. The launch of this new fund and the fast growth in assets managed by the passive fixed income team are a testament to that.”