HSBC Global Asset Management (HSBC GAM) has launched the HSBC Global Emerging Market Government Bond Index fund. The fund offers investors a cost-efficient way to invest in diversified emerging market government debt denominated in US dollars.
The fund aims to replicate the performance of the JPMorgan EMBI Global Diversified Total Return Index. It will be domiciled in Ireland under HSBC's ICAV platform which facilitates access to funds globally.
It will be managed by HSBC Global Asset Management's passive fixed income team, led by head of Passive Fixed Income, Sebastien Faucher. The team currently manages around $6.9bn of assets in different strategies.
The team's investment approach is based on ‘intelligent indexation', which focuses on close index tracking and minimising transaction costs. Both objectives are achieved by leveraging the expertise of HSBC Global Asset Management's active fixed income teams - including credit screening, managing credit events, participation in new issues and the execution provided by dedicated global fixed income traders.
The launch of the HSBC Global Emerging Market Government Bond Index fund follows the appointment of two fixed income specialists in January this year, Richard Jenkins and Jack Robert Waters. Jenkins joined as portfolio manager from State Street Global Advisors where he was investment manager for Fixed Income Beta. Waters joined as Fixed Income dealer from Amundi Asset Management where he was EM Fixed Income and FX trader.