8 September 2011
HSBC GIF Global Emerging Markets Local Debt*
This fund makes it possible to benefit from opportunities presented by local-currency debt markets in emerging countries within the framework of a thorough risk management process.
Since the beginning of the year, the fund has posted performance of 5.80%** (data at 31.08.11). The fund invests mainly in a diversified portfolio of fixed-income securities, such as bonds, denominated in local currencies and other similar investment grade and non-investment grade securities. These securities are issued or guaranteed by governments, government agencies or supranational organisations in the emerging markets or by companies registered in an emerging market.
This asset class has been growing strongly for a decade and offers genuine diversification potential. This is because bonds issued in local currencies show little correlation to other asset classes and emerging bonds issued in strong currencies such as the euro and the US dollar.
The specialised, experienced management team has set up a disciplined, yet flexible, management process. Decisions are taken by a group of managers supported by 200 professionals spread out over 14 countries. The fund’s capital is not guaranteed, its main exposure is to rate, credit and exchange risks, as well as those associated with derivatives and emerging markets.
* Part of the Luxemburg open-ended collective investment scheme (SICAV) ‘HSBC GIF’ – Part A in USD
** Refers to past performance.
Past performance cannot be relied on as an indicator of future performance.
The fund’s capital is not guaranteed, its main exposure is to the following risks.
