HSBC Global Asset Management is set to launch the new HSBC China Multi Asset Income Fund, which will seek to partly invest through the Hong Kong-Shanghai stock connect.
The fund, scheduled for November 17 launch, will invest up to 10% of assets through the stock connect.
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The new multi-asset fund will be diversified among H shares in Hong Kong and China-listed A and B shares, along with US dollar Chinese bonds and offshore RMB bonds, reports International Adviser.
Denis Gould, CIO, multi-asset and wealth, said that fund creates differentiation as it aims to "capture big sweeps of valuation change through the cycle, based on long term expected returns in asset classes. We won’t be hyperactive month-to-month or quarter-to-quarter. We’ll add value as the asset prices cycle."
Gould said that the investment landscape of China facilitates the diversified nature of multi-asset funds as asset classes are uncorrelated, and no single asset class outperforms consistently.
China A shares have a low correlation with US equities, global equities, and Hong Kong H shares.
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By GlobalDataCecilia Chan, CIO of fixed income, added that the fund is also seeking opportunities in onshore bonds.
