HSBC funds arm to launch specialist economic index trackers

HSBC Global Asset Management (HSBC GAM) is to roll out a series of funds tracking indices it recently launched which aim to lower volatility.

The HSBC Economic Scale Indices (ESI) differ to other indices as they allocate weightings to companies based on their economic scale, measured by "Value Added". HSBC said this approach produces more "stable and attractive returns", as it reduces the impact of some of the largest companies which can dominate indices because of their market capitalisation. HSBC said the new ESI Global, US and Japan equities indices will launch in the fourth quarter, tracking the indices which went live last month. HSBC has already launched a number of similar strategies, including the HSBC Global Inv...