A new addition to HSBC Global Asset Management’s Lux-based Global Investment Funds SICAV was announced this week.
A new addition to HSBC Global Asset Management’s Lux-based Global Investment Funds SICAV was announced this week. Named the HSBC GIF RMB Fixed Income fund, it will give UK and European investors access to China’s currency. The fund is to be managed by HSBC GAM’s Hong Kong-based Asian fixed income team, headed up by Cecilia Chan. As at end-June 2011 the team was managing USD24billion in Asian fixed income. The new fund will focus on offshore RMB-denominated instruments including bonds and deposits: in Hong Kong, RMB bonds are referred to colloquially as “Dim Sum” bonds. Given that much of the RMB market is characterized by shorter duration instruments the average duration of the fund will be in the one- to three-year range. A top-down, bottom-up approach to selecting instruments will be used. “The investment case for the Renminbi is powerful given the potential currency appreciation,” said Chan, adding: “As such, we believe the emergence of the offshore Renminbi fixed income market will provide investors with an exciting new investment opportunity.” Andy Clark, Head of Wholesale, EMEA at HSBC GAM said the fund was “an early entrant within the Ucits structure. The fund brings the expertise of HSBC’s vast capability in Asian fixed income to European investors in a straightforward format.”
