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HSBC Asset Management has launched a new FoHF product in Luxembourg designed for European investors.
The HSBC GH Luxembourg Fund offers access to what HSBC AM considers top tier hedge funds or managers in a single fund, according to a statement.
The portfolio will primarily allocate to the existing flagship hedge fund strategy HSBC GH Fund which invest in 28 underlying funds that employ a range of alternative strategies, including global macro, arbitrage, event-driven strategies, and long-short equity on a regional, global, or sectoral basis. The HFRI Fund of Funds Composite index will be used as a benchmark.
The fund’s multi-strategy nature can offer lower market sensitivity (beta) against traditional long-only asset classes, presenting a potentially improved risk return profile and minimising downside impact, helping it navigate market volatility.
The Luxembourg-domiciled fund builds on the HSBC Global Hedge flagship strategy which launched in 1996 and has delivered an annualised net return of 7.3% with an annualised volatility of 5.4% per annum over its 29-year life.
Tim Gascoigne, senior investment specialist at HSBC AM, said: “With continuing uncertainty pervading global markets, investors are expanding their avenues for returns and seeking greater exposure to asset classes which traditionally benefit from choppier markets. Against this backdrop – in our view – hedge funds provide a potentially attractive solution to meet the need of diversifying portfolios without compromising on return.
“The HSBC GH Luxembourg Fund further expands our European distribution coverage following consistent client feedback from the region seeking exposure to alternative strategies. We believe the Fund is well-positioned to meet this demand by offering institutional-quality hedge fund solutions underpinned by HSBC AM’s global reach and investment capabilities.”
The HSBC GH Luxembourg Fund is available to both institutional and wholesale investors across Switzerland, Italy, Spain, France, Belgium, Luxembourg and the Netherlands.
The HSBC Alternatives business had $73.8bn under management and advisory as of 31 December 2024.
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