HSBC underweight UK in Global Inflation Linked fund

HSBC has launched its Global Inflation Linked Bond fund with overweights to the US and Japan, but an underweight to the UK.

The portfolio allocation is 35% US, 25% UK, 25% eurozone (primarily France and Italy) and 10% Japan. Managed by quantitative strategies CIO Jean-Charles Bertrand, the fund invests in sovereign debt and is benchmarked against the Barclays World Government Inflation Linked index All Maturities, hedged in US dollars. Bertrand has been running the portfolio since July, although it only opened to external investors this month. He says assets are very attractive as markets expect inflation to remain low in the short to medium term. “If you look at the markets, they are 100% predicting...