HSBC Global Asset Management (HSBC GAM) has unveiled a new Luxembourg domiciled low volatility equity fund for investors in Hong Kong and Singapore.
Dubbed as HSBC Global Investment Funds – Global Equity Volatility Focused, the new fund will invest in a portfolio of equities that have a lower portfolio volatility compared to the MSCI All Country World Index via portfolio construction.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Managed by Angus Parker, head of developed equities at HSBC GAM, the fund seeks to provide long-term total return by investing at least 90% of its assets in equities and related securities of companies operating in OECD countries, and emerging markets.
With a minimum investment of HKD10, 000 and management fee of 1%, the fund will also invest in China through H shares and will be available in six different monthly distribution share classes and currencies including Hong Kong dollar and US dollar.
Parker said: "Equities play an important role in a balanced portfolio. Investors that are interested in gaining exposure to global equities, but are concerned about the impact of fluctuations, may consider a global equity fund that focuses on lowering volatility. This allows investors to participate in the expected upside for equity markets over the long term, but with lower volatility."
"The Fund taps into the global recovery story and will be invested in quality companies with strong underlying fundamentals – be it valuations, profitability, balance sheet and management – stocks which we believe are more likely to outperform in the long-term. These cash-generative franchises also have the flexibility to pay dividends, providing an attractive income stream," added Parker.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe fund is open for subscription at all HSBC branches in Hong Kong with initial offer period until June 26 2014 and a subscription fee of 5.25%.
