HSBC launches Global Inflation Linked Bond fund

HSBC has launched a Global Inflation Linked Bond fund which will invest in sovereign debt issued by OECD countries.

Managed by HSBC's quantitative-based fixed income team led by Jean-Charles Bertrand, the fund seeks to add value primarily through country allocation and is completely hedged against currency risk. Bertrand's team already manages $2.7bn of inflation linked bond assets. HSBC believes current accommodating monetary policies, combined with significant public deficits in developed economies, may lead to higher realised inflation in the next three to five years. "Inflation linked bonds provide the most effective hedge against inflation when compared to other asset classes, including rea...