HSBC Global Asset Management has launched a global bond fund which invests in sovereign inflation-linked bonds issued by members of the Organisation for Economic Cooperation and Development.
The HSBC GIF Global Inflation-Linked Bond fund adopts a quantitative management approach to inflation-linked bonds. Its investment universe includes countries such as America, Australia, Britain, Canada, Sweden and Japan, as well as some within the eurozone.
HSBC Asset Management’s quantitative-based fixed income team will manage the fund under the leadership of Jean-Charles Bertrand, the chief investment officer for quantitative strategies. The team has gathered more than $2.7 billion (£1.7 billion) in inflation-linked bond assets since the group launched its first inflation-linked bond fund back in 2000.
In times of economic uncertainties, however, Bertrand says inflation-linked bonds also have a low correlation to nominal bonds, diversify a fixed income portfolio and improve its overall risk-adjusted potential.
He says inflation-linked bonds also have a low correlation to nominal bonds, diversify a fixed income portfolio and improve its overall risk-adjusted potential. (article continues below)
The Luxembourg-based Sicav was launched at the beginning of July within HSBC’s flagship Global Investment Funds (GIF) range.
The HSBC GIF Global Inflation-Linked Bond fund seeks to add value primarily through country allocation and is hedged against currency risk. Retail investors pay an annual management fee of 0.7%. The fund has a sterling share class with a minimum investment of $5,000.