HSBC launches MultiAlpha Global Aggregate Bond Fund

Published: 8 July 2009

HSBC Global Asset Management, this week launches the HSBC MultiAlpha Global Aggregate Bond Fund, a manager-of-managers fund.

HSBC MultiAlpha Global Aggregate Bond Fund is managed by HSBC Multimanager, the specialist multimanager unit within HSBC Global Asset Management, consisting of more than 40 analysts based in 11 locations throughout the world. The lead manager is Rodney Gaskell, who has more than 21 years experience in fixed income investing and who joined HSBC Multimanager in 2008.

The team has selected three underlying managers at outset: Loomis Sayles, Pimco and Franklin Templeton. The managers were selected based on their ability to perform and also for the different styles they implement. These styles are then blended together to produce a complementary mix of managers and an optimal risk reward profile.

Investing across the entire fixed income opportunity set, the portfolio will predominantly contain government and government related debt, with approximately 20% in mortgage and securitised bonds and 15% in corporate bonds. (These levels are not fixed). There is also flexibility to invest a small portion of the fund in high yield and emerging market debt.

Philip Glaze, Chief Investment Officer, Multimanager, at HSBC Global Asset Management, said the launch of HSBC MultiAlpha Global Aggregate marked the seventh fund in HSBC’s MultiAlpha manager-of-managers range.

Other such funds include North America Equity, Asia Pacific ex Japan Equity, Japan Equity, European Equity, Global Emerging Markets Equity, and Global Equity.

Glaze added: “The MultiAlpha solution is proving particularly interesting to clients as it enables a blended solution that delivers the expertise of a small number of excellent managers in a simple packaged solution. This approach appeals to many investors as it is constantly managed at both the security and the manager level.”

The HSBC MultiAlpha funds are sub funds of the HSBC International Select Fund, a Luxembourg domiciled SICAV. The annual management charge on the HSBC MultiAlpha Global Aggregate fund is maximum 0.5% for Institutional shares and 0.9% for Retail shares. The expected TERs are fixed at 0.75% and 1.2% respectively.

Media enquiries to:

Jenne Mannion 44 0 20 7024 0444 or at e-mail Jenne.mannion@hsbc.com
Jane Crookbain 44 0 207 024 0412 or at e-mail Jane.crookbain@hsbc.com

Notes to editors:

HSBC Global Asset Management

HSBC Global Asset Management comprises four specialist businesses: Halbis, Sinopia, Multimanager and Liquidity. HSBC Multimanager and HSBC Liquidity are global business units which are part of HSBC Global Asset Management. Halbis Capital Management (‘Halbis’) and Sinopia Asset Management (‘Sinopia’) are legally established as separate companies. HSBC Global Asset Management manages assets of USD375.04 billion (as at end January 2009). Through its network of offices in over 20 countries around the world, HSBC Global Asset Management develops strong relationships with corporates, institutions and financial intermediaries of all sizes and types. HSBC Global Asset Management acts as the global representative of its specialist investment businesses. HSBC Global Asset Management is part of HSBC Global Banking and Markets, a division of HSBC Holdings plc. For more information see www.assetmanagement.hsbc.com

HSBC Multimanager

HSBC Multimanager is a specialist multimanager business, providing multimanager solutions to clients globally. HSBC Multimanager has one of the largest multimanager teams in the world, comprising more than 40 investment professionals (including a dedicated property multi-manager team) based in 11 locations around the world. The global reach of the team locations adds value through highly localised and expert manager insight and allows the Multimanager team to leverage their local market knowledge when building truly global solutions for clients.

For more information see www.assetmanagement.hsbc.com

The HSBC MultiAlpha funds are sub-funds of the HSBC International Select Fund, a Luxembourg domiciled SICAV. The Investment Adviser to the fund is HSBC Asset Management (France). UK based investors in HSBC International Select Fund are advised that they may not be afforded some of the protections conveyed by the provisions of the Financial Services and Markets Act 2000. All applications are made on the basis of the current HSBC International Select Fund Prospectus, simplified prospectus and most recent annual and semi-annual reports, which can be obtained upon request free of charge HSBC Global Asset Management (UK) Limited, 8 Canada Square, Canary Wharf, London, E14 5HQ. UK, or the local distributors. Investors and potential investors should read and note the risk warnings in the prospectus.

HSBC Holdings plc

HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from around 9,500 offices in 86 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With assets of USD2,527 billion at 31 December 2008, HSBC is one of the world’s largest banking and financial services organisations. HSBC is marketed worldwide as ‘the world’s local bank’.