HSBC Global Asset Management (HSBC GAM) has reopened its Asian fund after 20 months.
After a short-term increase in volume to $1.6bn, HSBC GIF Asia ex Japan Equity Smaller Companies fund was closed in May 2017. As a result, a hard closing was necessary to efficiently track the investment strategy.
The fund, co-managed by Elina Fung and Alex Kwan since July 2012, primarily invests in companies in the bottom 25% by market capitalisation of the Asia ex Japan universe. The liquidity in this market segment was generally limited, which necessitated the complete stop of acceptance. However, especially in the second half of 2018, global investors retreated from emerging markets and lost positions in both equities and bonds. This has also freed up capacities in HSBC GIF Asia ex Japan Equity Smaller Companies fund.
Axel Cron, chief investment officer at HSBC GAM Germany commented: "If you would like to participate in the structural and economic growth of Asia, you should consider entering into the Asian small-cap market in particular."
"In the long term, the names of smaller companies are likely to outperform the Asian market outside of Japan as a whole", he continued.