The bank said that Markets Debt Fund will invests primarily in US dollar denominated fixed income instruments of emerging market issuers, while the Markets Local Debt Fund will invest primarily in fixed income instruments denominated in emerging market local currencies.
HSBC said that the new mutual funds seek to maximize total return and provide exposure to emerging market economies.
The HSBC Emerging Markets Debt team, based in New York, will be led by Guillermo Osses, head of emerging markets debt portfolio management.
Osses said the launch of the funds meets the growing demand for foreign investments from individual investors who want to expand beyond US fixed income products.
"With the structural improvements experienced by emerging market countries, investors willing to accept higher price and income fluctuations than those of traditional fixed income funds can potentially find greater returns and added diversification by incorporating these emerging market debt funds into their long-term investment portfolios," Osses said.
