Global Equity Income
The HSBC Global Equity Income fund invests in a diversified portfolio of global equities, offering the potential for capital appreciation and indicative annual yield1, distributed quarterly.
1 There are no guarantees any specific level of dividend will be achieved, nor that there will be a distribution every quarter
Our approach
The HSBC Global Equity Income fund invests globally in stocks listed in both developed and emerging markets. The investment team takes advantage of the insights and perspectives of our investment specialists on the ground in different markets across the globe.
HSBC’s strengths
HSBC has a long history of over 30 years’ experience in managing equity solutions, with over 200 investment professionals and USD74.2 billion under management as at December 2017. The global equity team compromises 13 investment professionals.
Why consider choosing this fund?
- Global income diversification: the fund benefits from the broad opportunities of the global equity universe, offering a range of investment choice and potential for risk diversification, as compared to a narrow domestic equity perspective.
- Dual investment perspective: the fund combines income generation and capital appreciation – through the use of equity only and not enhancing yield artificially.
- Quarterly dividend income: the fund offers a level of yield that exceeds the global equity market weighted-average.
- Structured thinking: an investment approach aligned with our active equity investment philosophy, focusing on companies with an attractive combination of profitability and valuation. Disciplined investment implementation and robust governance.
- Proprietary fundamental research: our investment team conducts detailed fundamental due diligence, integrating Environment, Social, and Governance (ESG) analysis, on every investment selected for the portfolio.
- Portfolio balance: portfolio construction helps balance dividend yield, potential for capital appreciation and risk exposures.
Key risks
The value of an investment in the portfolios and any income from them can go down as well as up and as with any investment you may not receive back the amount originally invested.
- Exchange rate risk: investing in assets denominated in a currency other than that of the investor’s own currency perspective exposes the value of the investment to exchange rate fluctuations.
- Operational risk: the main risks are related to systems and process failures. Investment processes are overseen by independent risk functions which are subject to independent audit and supervised by regulators.
- Liquidity risk: liquidity is a measure of how easily an investment can be converted to cash without a loss of capital and/or income in the process. The value of assets may be significantly impacted by liquidity risk during adverse market conditions.
- Emerging market risk: emerging economies typically exhibit higher levels of investment risk. Markets are not always well regulated or efficient and investments can be affected by reduced liquidity.
- Derivative risk: the value of derivative contracts is dependent upon the performance of an underlying asset. A small movement in the value of the underlying can cause a large movement in the value of the derivative. Unlike exchange traded derivatives, over-the-counter (OTC) derivatives have credit risk associated with the counterparty or institution facilitating the trade.
- Counterparty risk: the possibility that the counterparty to a transaction may be unwilling or unable to meet its obligations.
2 Please note that this is not an exhaustive list on the risks associated with this strategy