HSBC Global Asset Management (GAM) has launched three 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 provide investors with access to cost efficient fixed income solutions. HSBC GAM’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 GAM’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.
HSBC Global Asset Management is planning to launch further funds, across asset classes, on the platform later in the year.