New emerging market investment fund from HSBC

Wed, 07 Apr 2010

HSBC has launched a new fund that will seek to provide investment returns by taking advantage of emerging markets .

The GIF GEM Equity Alpha Fund will target annual returns of between ten and 15 per cent, based on around ten per cent volatility with limited market correlation.

The fund portfolio will consist of around 35 long and 35 short stock positions gathered from 700 monitored stocks in MSCI Emerging Market nations and some MSCI Frontier Markets .

Omar Negyal, one of the fund's managers, said: "The HSBC GIF GEM Equity Alpha Fund is a high-conviction long/short portfolio.

"The investment process is fundamentally driven by a highly disciplined approach to stock picking, using combined profitability/valuation metrics for both long and short equity selection ."

A recent survey of independent financial advisers found that they were becoming increasingly optimistic about investments in emerging markets as uncertainly still surrounds British markets.
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