HSBC Global Investment Funds - Global Inflation Linked Bond ACHE (3NI0)

Overview

HSBC Global Investment Funds - Global Inflation Linked Bond ACHE is an open-end fixed income investment fund designed to provide investors with a balanced approach toward achieving long-term capital growth and income. This fund mainly focuses on inflation-linked bonds, which serve to protect the purchasing power of investors against rising prices. By actively selecting securities that index both principal and interest payments to inflation, HSBC ensures that its investors can safeguard their investment’s value in an economically volatile landscape.

The portfolio of this fund is predominantly composed of securities from government, government-related, and corporate issuers in developed markets. However, there is strategic flexibility allowing the fund to allocate up to 15% of its assets to emerging markets, thereby enhancing its potential for returns and diversification. Most of the investments are denominated in major currencies from developed markets, particularly the US dollar, with careful consideration given to including select foreign and emerging market currencies in limited amounts. The fund also places a strong emphasis on integrating environmental, social, and governance (ESG) criteria into its investment strategies, aiming for a superior ESG profile compared to its benchmark.

Managed within a Luxembourg-based UCITS structure, this fund benefits from strict regulatory oversight and adheres to high global standards in portfolio management. This regulatory framework ensures that investors are well-protected while they seek broad, geographically-diversified inflation mitigation in their fixed income investments.

Products and Services

• Inflation-Linked Bonds

  The primary offering of this fund is inflation-linked bonds, which provide principal and interest payments indexed to inflation. This investment vehicle is designed to help protect your purchasing power over time, making it an attractive option in environments of rising inflation.

• Government and Corporate Bonds

  The fund invests largely in bonds issued by governments, government-related entities, and corporations, primarily from developed markets. This broad mix of issuers helps to maintain a diversified risk profile while targeting stable income and capital growth.

• Emerging Market Allocation

  With the capability to allocate up to 15% of its assets to emerging markets, the fund seeks to enhance returns through potential growth opportunities outside traditional markets while managing risks associated with emerging economies.

• ESG Integration

  The fund incorporates ESG factors into its investment process, aiming for an improved ESG profile compared to its benchmark. This focus on sustainability and responsible investing aligns with the values of socially-conscious investors.

• Currency Exposure

  While the majority of the fund’s holdings are denominated in major developed market currencies, there is a strategy in place to include select foreign and emerging market currencies. This broadens currency exposure while managing associated risks effectively.

• Risk Management and Derivative Instruments

  The fund employs both direct bond holdings and derivative instruments when appropriate. This dual approach facilitates effective risk management and enhances portfolio efficiency, helping to safeguard investor capital in various market conditions.