HSBC launches three new globally focused mutual funds

Among the new mutual funds are two U.S. dollar (USD) funds. Whereas USD funds typically focus on investments in US companies and governments, the new HSBC funds offer Canadian investors the opportunity to capture the growth potential of global markets denominated in USD — an opportunity that hasn’t been available to them until now, the company says.

Said Cevey: “HSBC Global Equity Volatility Focused Fund can help investors enjoy the benefits of equity investing, with potentially lower risk than the broad market. And unlike other funds currently available to Canadian investors, its investment strategy doesn’t focus solely on low volatility stocks, which helps avoid sector concentration and overvalued stocks.”

HSBC Global Corporate Bond Fund invests in fixed-income securities that cover a range of issuers, countries and currencies, and is different in that it generally invests more outside North America than other global corporate bond funds do, says HSBC.

The two new funds mark an expansion of HSBC’s range of USD funds, complimenting the existing HSBC US Dollar Money Market Fund and HSBC US Dollar Monthly Income Fund. Both of the new USD funds were available as of Oct. 19.

The third new fund, HSBC Global Real Estate Equity Pooled Fund, invests in a global portfolio of income-producing real estate companies that hold residential, office and retail properties in North America, Europe and Asia. This fund is available via HSBC’s World Selection Portfolio as of Oct. 1.

Said Cevey: “Our analysis suggests that global real estate equity can offer Canadian investors with multi-asset portfolios significant, strategic benefits over the long term. This is, in part, due to historical trends that show global real estate equities having a relatively low level of correlation to stocks and bonds over long-term holding periods, in turn offering potential diversification benefits to Canadian investors.”