GLOBAL - HSBC Global Asset Management has launched the first CIVETS fund available to institutional investors.
The HSBC GIF CIVETS fund targets long-term returns from capital growth and income by investing in a diversified portfolio of equities from the stock exchanges of the CIVETS countries - Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa.
The fund also has the ability to invest up to 25% in non-CIVETS nations with similar demographics, such as Mexico, Nigeria, Philippines, Thailand, Malaysia and Saudi Arabia.
The CIVETS nations, which are among the next generation of emerging markets, echo many of the demographic qualities inherent in larger developing markets such as the BRIC nations of Brazil, Russia, India and China, HSBC GAM said. Collectively the CIVETS group has a population of around 600 million with an average age of 27 years, representing some 8% of the global population.
HSBC GAM global head of wholesale Sridhar Chandrasekharan said: "HSBC Global Asset Management is already a world leader in emerging markets, with some $145bn assets under management in this asset class globally. The launch of a CIVETS fund extends our product range for clients who wish to use our expertise to access these markets."
The Luxembourg-based fund will typically hold between 40 and 60 stocks and uses the US dollar as its base currency. The minimum investment for institutional investors is $1m.
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