HSBC GAM set to expand passive range with Global Aggregate Bond Index fund launch
HSBC Global Asset Management is set to expand its passive range with the launch of the Global Aggregate Bond Index fund, Investment Week understands.
Domiciled in Ireland, the fund will be physically replicated and have a total expense ratio of 0.45%.
Hedged in US dollars, the fund will be benchmarked against the Bloomberg Barclays Global Aggregate index,
The index offers exposure to 24 local currency markets, Treasuries and corporate and securitised fixed-rate bonds.
Rebalancing every month, the index is made up of entirely investment grade or higher securities with 41% in AAA-rated bonds, 16% in AA, 29% in A and 14% in BAA.
Furthermore, it has 39% in the US, 17% in Japan and 6% in France and the UK, as of June.
The move is part of a wider push into the passives space from the firm who launched three fixed income products in June, the HSBC Global Funds ICAV – US Government Bond Index fund, the Global Government Bond Index fund and the Global Corporate Bond Index fund.
The firm also appointed Legal & General Investment Management’s Sebastien Faucher in the newly-created role of head of passive fixed income in February.