HSBC Global Asset Management has launched a euro-denominated multi-asset income fund in Hong Kong.

 

The HSBC Collective Investment Trust - HSBC Euro Multi-Asset Income Fund aims to provide income and moderate capital growth through a diversified portfolio of Eurozone equities, euro-denominated fixed income securities as well as money market instruments, cash instruments and collective investment schemes that invests in Eurozone securities.

 

According to HSBC, the Eurozone economy is on track for a cyclical recovery and benefits from the strong support of the European Central Bank which is committed to the financial stability of the Eurozone. Economic growth is expected to pick up in 2016 as local companies and households benefit from various positive drivers in the region, including structurally stronger corporate credit quality and financial health, as well as fading fiscal drags. Low oil prices also act as a boost for domestic consumption and corporate profitability since the economy is a net importer of energy. 

 

Mathieu Guillemet, fund Manager, multi-asset also manager of the fund who is based in France, says: “From a fundamental point of view, the Eurozone economy has been quite resilient to the current global trade slowdown. The recent sell-off in the European markets was sentiment driven. Compared to other regions, the Eurozone benefits from strong tailwinds including accommodative monetary policy which is expected to support the region’s equity and credit markets.”

 

“The positive signs of a continuing, stable economic recovery as well as attractive valuations in equities and credits, especially after the recent sell-off, make the region one of the most appealing developed markets in 2016. A multi-asset approach helps investors access this broad set of opportunities to achieve income and long-term capital appreciation in different phases of the economic cycle,” adds Guillemet.

 

The investment management comprises two key processes - firstly, strategic asset allocation focusing on valuation to ensure that the fund has higher exposures to asset classes that show better prospects in terms of capital appreciation and income. This is then followed by tailored security selection based on income and quality considerations: within each asset class, the fund will look for securities with attractive and sustainable yield in the medium to long term.

 

The fund is available to the retail investors in Hong Kong starting today. It is available in seven currencies including the euro, USD, renminbi and Hong Kong dollar. The initial public offering period will end on 18 March 2016 and the fund will begin trading on the same day.

 

With over 20 years of experience managing multi-asset solutions, HSBC Global Asset Management currently manages assets of US$48.3 billion within its multi-asset strategies, and is one of the largest multi-asset managers globally.