HSBC Launches the Emerging Markets Debt Fund in Canada

VANCOUVER, Oct. 25, 2011 /CNW/ - HSBC Global Asset Management (Canada) Limited, manager of the HSBC Mutual Funds, has launched the HSBC Emerging Markets Debt Fund in Canada.

Marc Cevey, Chief Executive Officer of HSBC Global Asset Management (Canada) Limited, said: "This new fund provides investors with access to the growing emerging markets fixed income asset class that will appeal to investors seeking additional yield and diversification beyond more traditional developed market fixed income opportunities. Over the past ten years, stronger economic fundamentals and improving fiscal balances in emerging markets have led to credit upgrades for both corporate and government debt securities throughout emerging market countries."

By 2050, HSBC estimates that the GDP of emerging economies will have increased five-fold and will be larger in aggregate than the developed world. Nineteen of the top 30 economies by GDP are projected to be countries that we currently describe as 'emerging'.¹ Emerging market bonds now represent approximately 15 per cent of the global bond market², and 58 per cent of the emerging market debt universe is investment grade debt (BBB and above) at 2010, up from only 5 per cent in the late 1990s.³

The fund will be sub-advised to the emerging markets debt team at HSBC Global Asset Management (USA) Inc. Based in New York, this dedicated global emerging markets bond portfolio management team manages approximately US$10 billion of emerging market bond assets, at August 31, 2011. Globally, HSBC is one of the largest emerging markets fixed income managers with US$78.5 billion in assets under management.

"The new HSBC Emerging Market Debt Fund is available to investors as one of the underlying funds in our World Selection managed solutions, and also as a mutual fund. The fund is a medium risk fund, and is particularly suitable for long term investors looking to diversify the income component of their overall investment portfolio," said Cevey.

With the addition of this fund to complement the HSBC Chinese Equity Fund, HSBC Indian Equity, HSBC BRIC Equity Fund, HSBC Asia Pacific Fund and HSBC Emerging Markets Fund, HSBC continues to strengthen its broad line up of emerging markets funds in Canada. With more than 200 investment professionals located in emerging markets and US$139 billion in emerging market assets⁴, HSBC Global Asset Management leverages its global presence and local knowledge to seek out new opportunities in the world's fastest-growing regions.

Notes to Editors:

1. The world in 2050, published by HSBC Research, January 4, 2011.
2. Bank of International Settlements Quarterly Review, September 2011.
3. JP Morgan Emerging Market Bond Index, Standard & Poor's, June 2010.
4. HSBC Global Asset Management manages assets totaling US$453 billion, and is a leader in emerging markets, with US$139 billion invested in this asset class. Through its network of offices in approximately 30 countries globally, HSBC Global Asset Management has a worldwide client base of private clients, intermediaries, corporates and institutions invested in both segregated accounts and pooled funds. (All figures as at 30 June 2011). For more information see www.assetmanagement.hsbc.com
5. HSBC Global Asset Management (Canada) is a subsidiary of HSBC Bank Canada. HSBC Bank Canada, a subsidiary of HSBC Holdings plc, is the leading international bank in Canada. With around 7,500 offices in over 80 countries and territories and assets of US$2,691 billion at 30 June 2011, the HSBC Group is one of the world's largest banking and financial services organizations.
6. HSBC Global Asset Management (Canada) Limited is the manager and primary investment advisor for the HSBC Mutual Funds.  HSBC Investment Funds (Canada) Inc. is the principal distributor of the HSBC Mutual Funds.  HSBC Mutual Funds are also distributed through authorized dealers.  Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments.  Please read the prospectus before investing.  Mutual funds are not guaranteed or covered by the Canada Deposit Insurance Corporation, HSBC Bank Canada, or any other deposit insurer.  Their values change frequently and past performance may not be repeated. The unit value of money market funds may not remain constant.

For further information:

Media enquiries:

Ernest Yee Vice President, Corporate Affairs HSBC Bank Canada Tel:  [phone]

Fabrice de Dongo Senior Manager, Public Affairs HSBC Bank Canada Tel: [phone]