HSBC Global Asset Management, India announced the launch of its open ended fund of fund scheme called HSBC Asia Pacific (Ex Japan) Dividend Yield Fund that will invest into HSBC GIF Asia Pacific (Ex Japan) Equity High Dividend Fund.
The fund will be benchmarked against MSCI AC Asia Pacific ex Japan. Launched in November 2004, the underlying scheme is a dividend yield focused equity fund which aims to offer investors access to long-term investment opportunities in predominately emerging markets in the Asia Pacific region, with investment primarily into stocks which have a higher dividend yield as compared to market average, states the press release issued by HSBC Global Asset Management, India.
Puneet Chaddha, Chief Executive Officer of HSBC Global Asset Management, India said, “Being one of the leading asset management companies worldwide, we are committed to providing unique products for Indian investors which are in keeping with their investment objectives and risk profiles. A first of its kind, this fund allows investors to diversify their investments into the Asia Pacific region employing a dividend yield strategy – a strategy that tends to outperform growth strategies over the long term.”
Chris Adams, Director and Senior Product Specialist, HSBC Global Asset Management, Hong Kong said, “Asia Pacific (ex Japan) region looks to be in a good zone, given low valuations and reasonable consensus earnings expectations. The structural changes taking place in Asia provide compelling investment opportunities and it has also underperformed developed markets in recent times, raising the possibility of a "catch-up" in the medium term. Asia has historically been one of the highest dividend yielding regions and especially in volatile markets, could be a good option for investors to look at from a diversification perspective.”
The new fund offer opens on February 03 and closes on 17 February. The minimum investment amount is Rs. 10,000.
Michael Dillon and Sanjiv Duggal are the fund managers of the underlying offshore fund and the local fund of fund scheme will be managed by Piyush Harlalka and Sanjay Shah.
Samsung Electronics, BHP Billiton, Taiwan Semiconductor Manufacturing, and Commonwealth Bank of Australia are some of the top holdings of the underlying scheme as on November 30, 2013. The fund has invested in companies operating in Australia (25.6%), China (20.6%), Taiwan (10.8%) Korea (10.7%), Hong Kong (10%), Singapore (6.9%), India (5%), Thailand (3.4%), Malaysia (4.3%) and Indonesia (2.5%).
