HSBC Global Asset Management launches the HSBC GIF Global Bond Market Neutral Fund, aimed at institutional investors.
The fund invests in the 11 largest OECD government bond markets and corresponding currencies, with exposure to the different asset classes mainly being achieved through the use of financial derivative instruments.
The fund aims to outperform the money markets over the medium to long term, with an average annual volatility level of between three and 4.5%.
Managed by Sinopia, the quantitative specialist of HSBC Global Asset Management, the fund is structured as a Luxembourg-based Sicav within HSBC’s global investment funds range. Based in euro, investors can also subscribe in a range of other currencies including GBP, SGD, USD, AUD, CAD and PLN.
Minimum investment for the institutional share class in the fund is USD1million. There is a 0.70% annual management charge and the fund carries a performance fee of 20% above the capitalised Eonia rate.
The global bond market neutral strategy provides a source of alpha diversification relative to other hedge funds and absolute return strategies, says Barbara Rupf Bee, global head of institutional sales, HSBC Global Asset Management.
This strategy has for some time generated interest due to its minimal credit and liquidity risk. As a result, HSBC Global Asset Management has made it accessible to our clients via the Ucits III fund format.
L.D.