HSBC Global Asset Management has launched three new passive fixed income funds on its new ICAV platform. The three funds, which are domiciled in Ireland, are managed by Sebastien Faucher, Head of Passive Fixed Income at HSBC Global Asset Management.
This platform is designed to facilitate access to funds globally, leveraging HSBC’s existing footprint in Ireland.
The three new passive fixed income funds seek to replicate the performance of their respective index, while minimising the tracking error.
The funds are: the HSBC Global Funds ICAV – US Government Bond Index Fund, which replicates the performance of the Bloomberg Barclays US Treasury Index; the HSBC Global Funds ICAV – Global Government Bond Index Fund, which replicates the performance of the FTSE World Government Bond Index; and the HSBC Global Funds ICAV – Global Corporate Bond Index Fund, which replicates the performance of the Bloomberg Barclays Global Corporate Bond Index.
These new funds provide investors with access to cost efficient fixed income solutions. HSBC Global Asset Management’s global fixed income team has made significant investments in developing proprietary resources and tools over the years; including the creation of its Global Credit Research Platform with a team of 47 credit professionals, allowing it to effectively screen the universe, as well as its proprietary portfolio modelling and risk monitoring system: HSBC Analytics. These resources allow HSBC to offer clients cost-efficient products and effectively manage a range of global passive fixed income funds. Depending on the share class and fund, these solutions are priced from 7 bps.
HSBC Global Asset Management’s investment approach within passive investments focuses on two important objectives: close index tracking and minimising transaction costs. The passive fixed income team achieves these equally important objectives by leveraging the expertise of its active fixed income teams – from credit screening, managing credit events, participation in new issues and the execution provided by dedicated global fixed income traders. This investment process helps passive investors to achieve their investment objectives in a more consistent and robust way.
Xavier Baraton (pictured), Global Chief Investment Officer, Fixed Income, HSBC Global Asset Management, says: “The launch of these three funds and our new ICAV platform form part of our strategic initiative to further strengthen HSBC Global Asset Management’s proposition within passive investments. This initiative is in response to client demand for cost efficient fixed income passive solutions and reflects our commitment to offering clients an effective range of global products and solutions.
“HSBC Global Asset Management has successfully been investing into passive strategies on behalf of clients for nearly three decades. We believe that our long heritage in managing passive investments, coupled with our global reach and substantial fixed income resources, gives us the basis to provide our clients with competitive products and the highest level of service.”