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HSBC Surpasses $15bn in Emerging Markets Debt Investments

30 May 2013

New York, NY - HSBC Global Asset Management has continued to experience strong investor appetite for its New York based Emerging Markets Debt (EMD) investment strategies during the first four months of 2013, according to new data released today. A sustained global upswing in demand for EMD from institutional and high net-worth investors prompted HSBC's emerging markets debt assets in April 2013 to exceed $15 billion for the first time.

While much of the interest has come from investors in Europe and Asia, HSBC has also been seeing increasing U.S. appetite for emerging markets debt, particularly in respect of its Total Return Strategy.

In March 2012, HSBC Global Asset Management introduced a U.S. registered mutual fund that provides American investors with access to its total return strategy. The HSBC Total Return Fund1 invests primarily in fixed income issues economically linked to emerging market countries. This Fund has attracted more than $500m through April 2013, despite only having been available in the U.S. for just over a year.

Deborah Hazell, CEO, HSBC Global Asset Management (USA) Inc., said: "Fixed income yields in many developed countries remain at historically low levels. Given the challenging economic backdrop and credit downgrades in many developed markets, more investors are looking elsewhere for return potential and increasing their allocation to Emerging Markets Debt."

She continued: "A total return strategy provides a dynamic way for investors to access the broad spectrum of opportunities available in Emerging Markets fixed income."

HSBC Global Asset Management, the core investment management business of the HSBC Group, manages assets totalling $428bn and is a leader in emerging markets funds, with more than $153bn of assets managed in global, regional and country specific emerging markets strategies across a range of asset classes as at March 30th, 2013.

Notes to editors:

1 The HSBC Total Return Fund ("the Fund") is U.S. registered and may be offered to all U.S. investors with the appropriate risk tolerance. The Fund trades in Class A (HTRAX), Class I (HTRIX) and Class S (HTRSX) shares. The inception date of the Fund was March 29, 2012.

HSBC Global Asset Management
HSBC Global Asset Management, the core investment management business of the HSBC Group, manages assets totalling US$428bn and is a leader in emerging markets funds, with more than US$153bn of assets managed in global, regional and country specific emerging markets strategies across a range of asset classes. HSBC Global Asset Management has a worldwide client base of private clients, intermediaries; corporates and institutions invested in both segregated accounts and pooled funds. HSBC Global Asset Management fulfils its purpose of connecting these customers with investment opportunities through an international network of offices in approximately 30 countries, delivering global capabilities with local market insight. (All figures as at March 31, 2013). For more information see www.global.assetmanagement.hsbc.com

HSBC Bank USA, National Association, with total assets of $183.9bn as of 31 March 2013 (US GAAP), serves 3 million customers through retail banking and wealth management, commercial banking, private banking, asset management, and global banking and markets segments. It operates more than 250 bank branches throughout the United States. There are over 165 in New York State as well as branches in: California; Connecticut; Delaware; Washington, D.C.; Florida; Maryland; New Jersey; Pennsylvania; Oregon; Virginia; and Washington State. HSBC Bank USA, N.A. is the principal subsidiary of HSBC USA Inc., an indirect, wholly-owned subsidiary of HSBC North America Holdings Inc. HSBC Bank USA, N.A. is a member of the FDIC.

The material in this document is for information only and does not constitute investment advice or a recommendation to any reader of this material to buy or sell investments. The information included in this document is based on sources believed to be reliable. However, we have not independently verified such information and make no guarantee, representation or warranty and accept no responsibility or liability as to its accuracy or completeness. All opinions expressed herein are as of the date produced and are subject to change without notice. This information is not intended to provide professional advice and should not be relied upon in that regard. You are advised to obtain appropriate professional advice based on your own individual circumstances and should consult your adviser before considering a specific transaction.

The Fund may use derivatives in connection with its investment strategies to hedge and manage risk and to increase its return. Derivatives may be riskier than other types of investments because they may be more sensitive to changes in economic or market conditions than other types of investments and could result in losses that significantly exceed the Fund's original investment.

Diversification does not guarantee a profit or protect against a loss, and cannot eliminate the risk of fluctuating prices and uncertain returns. The Fund is considered to be "non-diversified" under the Investment Company Act of 1940, as amended ("1940 Act"), which means that the Fund may invest a greater percentage of its assets in a more limited number of issuers than a diversified fund.

All investments involve risk including the loss of principal. International investing involves a greater degree of risk and increased volatility, which is heightened when investing in emerging or frontiers markets. Foreign securities can be subject to greater risks than U.S. investments, including currency fluctuations, less liquid trading markets, greater price volatility, political and economic instability, less publicly available information, and changes in tax or currency laws or monetary policy. Fixed income investments are subject to credit and interest rate risks. High-yield, lower rated securities involve greater price volatility and present greater risk than higher rated fixed income securities. For complete risk considerations, which should be considered carefully along with the portfolio's investment objectives and fees before investing, please refer to the fund's prospectus.

Investors should consider the investment objectives, risks, charges, and expenses of the investment company carefully before investing. The prospectus contains this and other important information about the investment company. To obtain more information, please call 1-888-936-4722 or visit www.emfunds.us.hsbc.com. Investors should read the prospectus carefully before investing or sending money.

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