HSBC Global Asset Management recently added a fourth emerging markets fund to its lineup. The fund, HSBC Total Return Fund, bets primarily in emerging markets debt, denominated in local emerging market or major developed market currencies and derivatives.
The fund’s portfolio management team at HSBC is based in New York and is led by Guillermo Ossés, Head of Emerging Markets Debt Portfolio Management. It sports a net expense ratio of 160 basis points.
"Monetary policy in most emerging market economies has come a long way over the last decade,” stated Ossés. “In many of these markets sound economic policies and increasingly stable political regimes have helped strengthen investor confidence. Reflecting improving fundamentals, there has also been a steady rise in many emerging market credit ratings. As a result, we believe many investors could potentially benefit from a greater strategic allocation to this asset class."
HSBC Global Asset Management managed some US$148.3 billion in emerging markets assets as of March 31.