HSBC to launch new China fund
HSBC Asset Management is looking to tap into what it sees as a bullish investment environment in China, announcing that it will launch a new China focused fund to Australian investors later this week.
The new fund will be local version of the group’s Global Investment Fund (GIF) Chinese Equity Fund, which is not available to Australian investors.
The HSBC Chinese Equity Fund will be managed by the same investment team and will use the same investment strategy as the Luxemburg based GIF Chinese Equity Fund.
“Because of the regulatory tax environment here it makes it difficult to sell [the GIF] fund in Australia so what we’re doing is setting up a local version,” said a spokesman for HSBC Asset Management.
He says the Australian version will be opened for an initial offer period ending on 17 December in an attempt to raise a minimum of $20 million in funds under management.
“Which will enable us to run our fund in exactly the same way that the…team manages the GIF fund. “We need a certain amount of FUM in order to run the same strategy.”
The Luxemburg based HSBC GIF Chinese equity fund is sold in 20 countries and has approximately $1.8 billion in FUM.
Since it was established in 1992 it has returned 10.76 per cent, outperforming the benchmark by 12.36 per cent. In the last five years it has returned 6.03 per cent compared to the benchmark of 1.51 per cent and over the past year it has returned 38.8 per cent compared to the benchmark of 31 per cent.
The spokesman says HSBC is very bullish on China, which is now the sixth largest economy in the world.
“Consumer driven demand and export driven growth means that the economy of China for the long term perspective looks like a particularly good place to be,” he says.
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