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The Fund invests mainly in equities, bonds and other related investments such as commodities and liquid alternative funds. The Fund aims to deliver return that targets to exceed US inflation (Real Return) over the long term.
To achieve its investment objective, the Fund may focus on assets that tend to perform in an inflationary environment. There is a possibility that the Fund may not achieve the desired results under all circumstances and market conditions.
The investments of the Fund may be periodically rebalanced and therefore the Fund may incur greater transaction costs than a fund employing a buy-and-hold allocation strategy.
The Fund may invest in financial derivative instruments for investment purpose which may lead to higher volatility to its net asset value.
The Fund may pay dividends out of capital or gross of expenses. Dividend is not guaranteed and may result in capital erosion and reduction in net asset value.
The Fund’s investments may involve substantial credit, credit rating, currency, volatility, liquidity, interest rate, valuation, emerging markets, tax and political risks and risks related to general equity market, general debt securities, sovereign debt, mainland China market, convertible securities, real estate, infrastructure industry, commodities, small/mid-capitalisation companies, investment in other collective investment schemes and risks associated with flexible pay-out share class. Investors may suffer substantial loss of their investments in the Fund.
Base Currency Hedged Share Classes or RMB denominated class are subject to higher currency and exchange rate risks.
Investors should not invest solely based on this page and should read the offering documents for details.
Price increases over the past year
Note:
(1) Source: Consumer Price Indices for September 2022, Census and Statistics Department, The Government of the Hong Kong Special Administrative Region.
(2) Source: Petrol Data from 30 September 2021 to 30 September 2022, Oil Price Watch, Consumer Council.
For illustrative purpose only.
A multi-asset strategy to navigate different economic environments
Why HSBC Global Diversified Real Return Fund?
Inflation is expected to remain persistent over the medium- to long-term. Investors may benefit from a diversified solution that can generate potential real return by taking inflation into account
Real assets are positively linked to inflation through earning prospects
The Fund’s focus on liquid real assets, such as property stocks, allows for timely and dynamic portfolio allocation in fast-changing markets
Source: HSBC Asset Management, November 2022. For illustration purpose only.
Due to their inflation-linked nature, real assets have historically performed better than other asset classes in inflationary cycles (see chart below)
By investing in a diversified portfolio with a strong focus on real assets, the Fund aims to provide real return that exceeds US inflation rate in the longer term
Average annual return during high inflation periods* between Apr 1998 and May 2022
* High inflation means inflation higher than historical 70 percentile
Source: Bloomberg, HSBC Asset Management, from April 1998 to May 2022. Indices used: Global Property - FTSE EPRA/NAREIT Developed Index; Global Infrastructure Listed - S&P Global Infrastructure; Commodity - Bloomberg Commodity Index; Gold - XAU Gold Ounce; Global Inflation Linked Bonds - Barclays World Govt Inflation Linked Bond; Global Equities - MSCI AC World; Global Aggregate Bonds - Barclays Global Aggregate Bond; Global Corporate Bonds - Barclays Global Aggregate Corporate; Global High Yield Bonds Short - ML 1-3 Year BB-B US and Euro Non-Financial High Yield Constrained. Investment involves risks. Past performance is not indicative of future performance.
Hedging against inflation is not as simple as merely owning real assets. Rather, it is critical to employ a versatile strategy that can respond to various conditions
The Fund is designed for flexibility and adopts a dynamic, multi-asset approach to navigate different economic cycles. For example, it may focus on listed infrastructure equities in an inflationary and/or growth environment, but tilt to high-quality government bonds in anticipation of a slowdown
The Fund employs a dynamic asset allocation to navigate market conditions
Source: HSBC Asset Management as at November 2022 and subject to change. For illustrative purposes only. The information provided is for informational purposes only and should not be construed as a recommendation or solicitation for any investment strategy or product, nor securities in the regions and countries referenced. The views expressed above were held at the time of preparation and are subject to change without notice. Any forecast, projection or target contained in this presentation is for information purposes only and is not guaranteed in any way. Data displayed above is shown on a look-through basis. This means that the fund may not directly hold these securities and the investment in these securities may be via other funds.
Fund information
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Resources
Inflation and interest rate changes: How to position your investments
Learning the relationship between interest rates and inflation is of utmost importance to investments.
The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested. Past performance is not a reliable indicator of future performance. Any views and opinions expressed are subject to change without notice. Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. We accept no liability for any failure to meet such forecast, projection or target. This page is prepared for general information purposes only and does not have any regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive it. Any views and opinions expressed are subject to change without notice. This document does not constitute an offering document and should not be construed as a recommendation, an offer to sell or the solicitation of an offer to purchase or subscribe to any investment.
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Terms and conditions
This Site is intended for financial intermediaries in Hong Kong only.
The information herein is not intended for individuals and such individuals should not rely upon it.
Important information
The Funds invest in various investments, such as equities, bonds, money market instruments, collective investment schemes and alternative investments. Each fund has a different investment objective and risk profile.
The Funds may subject to the risks of investing in emerging markets and smaller companies; and may subject to the concentration risks when the investments are concentrated in one or a small number of markets or sectors.
The Funds may invest in non-investment grade bonds, unrated bonds, contingent convertible securities, mortgage backed securities, asset backed securities and urban investment bonds issued by PRC local government financing vehicles (LGFVs) which are subject to additional risks and volatility.
The Funds may have substantial investments in securities issued by a single sovereign issuer (including but not limited to issuer with a non-investment grade credit rating) and are subject to higher concentration risk, sovereign risk and credit risk.
The Funds may gain exposure to hedge fund, absolute return strategy, private equity, real estate sector and Real Estate Investment Trust (REIT) which are subject to additional risks and volatility.
The Funds may invest in onshore Chinese securities through various market access schemes and China A-shares Access Products. Such investments involve additional risks, including the risks associated with China's tax rules and practices.
When investing in Indian bonds, the Funds may need to comply with the licensing regulations in India and may subject to additional risks, including quota restrictions and tax risks.
The Funds may invest in other funds and need to bear the underlying funds' fees and expenses on top of the Funds' own fees and expenses.
The Funds may invest in financial derivative instruments for investment purpose which may lead to higher volatility to their net asset value.
The Funds may pay dividends out of capital or gross of expenses. Dividend is not guaranteed and may result in capital erosion and reduction in net asset value.
Because the Funds' base currency, investments and classes may be denominated in different currencies, investors may be affected adversely by exchange controls and exchange rate fluctuations. There is no guarantee that the currency hedging strategy applied to the relevant classes will achieve its desired result.
Investing in money market funds are not the same as placing funds on deposit with a bank or deposit taking company. The Funds which are money market funds have no obligation to redeem units at their offering value and such Funds are not subject to the supervision of the Hong Kong Monetary Authority. Investors may not recoup the original amount invested in the Funds.
The Funds' investments may involve substantial credit, currency, volatility, liquidity, interest rate, tax and political risks. Investors may suffer substantial loss of their investments in the Funds.
The Funds are NOT equivalent to time deposits. Investors should not invest in the Funds solely based on the information provided herein and should read the offering document of the Fund for details.
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