HSBC Global Asset Management is set to launch a new global equity dividend fund in Hong Kong, which will invest in companies with dividends.
Domiciled in Luxembourg, the fund will charge an annual management fee of 1.5% and will be distributed in US dollar and Hong Kong dollar share classes, reported International Adviser.
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The fund, which will be launched on 24 July 2015, will invest in a diversified portfolio of equities across cyclical and defensive sectors as well as across developed and emerging markets.
The new equity fund will allocate 57% of its portfolio in North America followed by emerging markets which account for 17%.
Additionally, consumer discretionary, financials and consumer staples will account for nearly half the sector allocation.
Angus Parker, manager of the fund and head of developed equities at HSBC Global Asset Management said: "In today’s low interest rate environment, investors are seeking avenues beyond cash to fulfill their income requirements.
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By GlobalData"Dividends are not only a key component of an investor’s total return, but can also be an important source of cash flow. Dividend growth also has the potential to exceed inflation," the publication quoted Parker as saying.
