HSBC battles UK home bias with global funds launch

HSBC Asset Management has launched four new global funds to the UK market in a bid to overcome investors’ “domestic bias”.

HSBC battles UK home bias with global funds launch

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The launch includes two multi-asset strategies as well as two income-focused funds, one investing in equities and the other in bonds. All four will have a global remit.

The HSBC Global Equity Income Fund and HSBC Global High Income Bond Fund aim to provide returns and beat the low-interest environment.

Two multi-asset strategies, HSBC Global Strategy Conservative and HSBC Global Strategy Adventurous, have also been added to the group’s range of risk-profiled portfolios, taking the number to five.

Andy Clark, CEO of HSBC Global Asset Management in the UK, said: “We know that investors tend to feel more comfortable with their home market, with those in the UK keeping almost a quarter of their equity portfolios in UK stocks.

“The UK stock market has had a good year due to companies’ foreign revenues being boosted by a weaker sterling.

“However, the concentration risk implied by a domestic bias may be penalising over the long term. Global investing can mitigate country-specific risks, bring valuable diversification benefits and help access opportunities in many different markets. Our new global funds will do just that.”

The multi-asset strategy portfolios come with OCFs of 0.16%.

All HSBC Global Asset Management funds are available via the main platforms.

Minimum investment is a £1,000 lump sum or a £50 monthly payment.

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