HSBC adapts frontier fund structure

HSBC branchHSBC Global Asset Management has launched a long-only equity fund investing in “the next generation of emerging markets”, the HSBC GIF Frontier Markets fund.

Its existing HSBC New Frontiers Fund, which is managed by Andrea Nannini, has been merged into the new product.

When the first fund launched in February 2008 as a Luxembourg-based specialist investment fund, frontier market investments were not Ucits-compliant.

Nannini will also manage the newly created fund, using the same objective of aiming to achieve long-term capital growth by investing in the securities of companies located in or operating in frontier Emerging markets.

HSBC considers countries such as Qatar, Nigeria, Pakistan, Vietnam, Romania and Argentina as frontier markets. These are typically at an earlier stage of economic, political and financial development.

Even though they ts have a higher risk profile traditional emerging markets, HSBC says they offer investors potentially higher returns over the long term.

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