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HSBC launches multi-asset income fund

Eurozone equity market valuations look attractive, especially compared with US equities, given the ECB’s accommodative policy, the bank said of the strategy, which will also include some bond investments.

HSBC Global Asset Management has launched a euro-denominated multi-asset income fund in Hong Kong. 
HSBC Collective Investment Trust–HSBC Euro Multi-Asset Income Fund will invest in a diversified portfolio of Eurozone equities and Euro-denominated fixed income securities as well as money market instruments, cash instruments and collective investment schemes focused on Eurozone securities.
The portfolio will be open to debt instruments across the risk spectrum including investment grade, non-investment grade and unrated bonds.
The fund is in its initial offering period until 18th March when it is due to be launched. Investors can commit through seven currencies including euros, US dollars, renminbi and Hong Kong dollars. The minimum investment is €1,000 and dividends will be paid monthly.
The fund is targetting Asian investors who seek to benefit from opportunities in the Eurozone market, while diversifying their Asia-centric investments which are more sensitive to the US cycle and China outlook. 
“From a fundamental point of view, the Eurozone economy has been quite resilient to the current global trade slowdown. The recent sell-off in the European markets was sentiment driven. Compared to other regions, the Eurozone benefits from strong tailwinds including accommodative monetary policy which is expected to support the region’s equity and credit markets,” said Mathieu Guillemet who will manage the fund.
“The positive signs of a continuing, stable economic recovery as well as attractive valuations in equities and credits, especially after the recent sell-off, make the region one of the most appealing developed markets in 2016. A multi-asset approach helps investors access this broad set of opportunities to achieve income and long-term capital appreciation in different phases of the economic cycle,” added Guillemet.
HSBC Global Asset Management currently manages $48.3 billion in assets within its multi-asset strategies unit.