HSBC launches emerging markets fund

HSBC is giving investors more access to the growing emerging markets. The newly launched HSBC Emerging Markets Debt Fund will be sub-advised by the emerging markets debt team at HSBC Global Asset Management (USA) Inc.

“Over the past ten years, stronger economic fundamentals and improving fiscal balances in emerging markets have led to credit upgrades for both corporate and government debt securities throughout emerging market countries,” said Marc Cevey, CEO of HSBC Global Asset Management (Canada) Limited.

Globally, HSBC is one of the largest emerging markets fixed income managers with US$78.5 billion in assets under management.

By 2050, HSBC estimates the GDP of emerging economies will have increased five-fold and will be larger in aggregate than the developed world. Nineteen of the top 30 economies by GDP are projected to be countries that we currently describe as ’emerging’.

Emerging market bonds now represent approximately 15% of the global bond market, and 58% of the emerging market debt universe is investment grade debt (BBB and above) at 2010, up from only 5 per cent in the late 1990s.

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