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HSBC GAM offers inflation protection with bond tracker

HSBC GAM offers inflation protection with bond tracker

HSBC Global Asset Management  (GAM) has followed up its new index-linked gilt tracker with the launch of a passive corporate bond fund.

The HSBC Sterling Corporate Bond Index Fund tracks the Markit iBoxx GBP Non-Gilts Index and carries an ongoing charges figure (OCF) of 17 basis points.

Managed by the HSBC GAM global bonds team, which runs the firm’s suite of actively managed fixed income vehicles, the fund aims to mitigate ongoing interest rate and inflation risk while providing a route into bond markets.

‘The portfolio is designed to offer cost-effective access to an area of fixed income where direction of interest rates is not the only driver of performance,’ said a statement from HSBC.

‘Index-linked bonds are designed to provide a degree of protection from effects of inflation. These securities go up in value when the rate of inflation increases and are able to offer valuable diversification benefits.’

The launch follows on from HSBC GAM's launch of a passive UK gilt fund in July.

HSBC Index-Linked Gilt Index tracks the FTSE Actuaries Index-Linked Gilt Index, and also carries a 0.17% OCF.

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