HSBC adds emerging markets debt fund in Canada, anticipating growth

By Susanna Moon

Chicago, Oct. 25 - HSBC Global Asset Management (Canada) Ltd. said it launched the HSBC Emerging Markets Debt fund in Canada.

The fund will be subadvised to the emerging markets debt team at HSBC Global Asset Management (USA) Inc., which manages the HSBC mutual funds and is based in New York, according to a press release.

The global emerging markets bond portfolio management team managed about $10 billion of emerging market bond assets as of Aug. 31.

"Over the past 10 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," Marc Cevey, chief executive officer of HSBC Global Asset Management (Canada), said in the release.

By 2050, HSBC estimates that the GDP of emerging economies will grow five-fold and will top that of developed economies, the release noted.

Nineteen of the top 30 economies by GDP are projected to be countries that are describe as emerging.

Emerging market bonds now represent about 15% of the global bond market, and 58% of the emerging market debt universe is investment-grade debt (BBB and above) in 2010, up from 5% in the late 1990s, the asset manager added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.