HSBC Global Asset Management has launched two emerging market debt funds. The HSBC Emerging Markets Debt Fund will invest in fixed income issued in emerging markets, and the HSBC Emerging Markets Local Debt Fund will invest in fixed income issued in emerging markets denominated in local currencies.
The funds will be run by the HSBC emerging markets debt team, overseen by Guillermo Osses.
“The launch of the funds meets the growing demand for foreign investments from individual investors who want to expand beyond U.S. fixed income products,” Osses said. “With the structural improvements experienced by emerging market countries, investors willing to accept higher price and income fluctuations than those of traditional fixed income funds can potentially find greater returns and added diversification by incorporating these emerging market debt funds into their long-term investment portfolios.”
HSBC noted that both corporate and government debt in emerging markets have been upgraded since 1990, to the point that today, more than half of the emerging market universe is investment grade. Further, in the past 15 years, emerging market bonds have outperformed developed market bonds.