The Dutch pension asset manager's Asia Pacific head of real estate says his team has just had one of its busiest years ever and that 2021 is looking similarly promising.
The index is driven by a rule-based quantitative model and contains up to 50 of the largest and most liquid companies in the emerging markets. Created by HSBC Global Markets, the methodology used ensures that the index remains dynamic and captures returns from a highly diversified portfolio in 10 of the largest emerging market regions.
ôThe indexÆs strategy means that it can adapt and change to reflect the dynamics of the largest emerging market companies, as each market develops,ö says Paul Thind, head of EMEA third-party structured product development.
Given that energy is universally used and emerging economies are experiencing high rates of growth, many of the largest companies in the index are energy stocks. Banks, insurance companies, telecoms, consumer, and information technology companies give this index regional and sector diversification.
The relative growth of each region is measured each year and becomes reflected in the index by adjusting the weights of constituents. The indexÆs periodic reviews are aimed at ensuring liquidity.
HSBC believes that the biggest companies in the emerging markets have inherent advantages in terms of the best access to capital, human resources, and best capacities to access global markets and are less volatile than the small-cap sector companies.
HSBC believes the index values will act as reference for the pricing of investment products, and plans to launch globally a range of innovative investment products linked to the index.
HSBC Global Banking and Markets is an emerging markets-led and financing-focused business that provides tailored financial solutions to major government, corporate and institutional clients worldwide.
There is definite proof that sustainability-focused funds are outperforming their conventional counterparts. But some experts believe the traditional explanations for this are wrong.
As Covid restrictions continue to put the bite on travel, Australia's superannuation funds are seeing mileage in spending big on communications and digital infrastructure.
Sunsuper and QSuper appoints CIO for combined entity; State Street appoints heads of HK and Taiwan; Nothern Trust rebuilds Apac team; Manulife IM names emerging markets fixed income CIO; RBC Wealth Management hires four into HK; Lombard Odier hires two senior equity managers; Allianz Global Investors appoints Asia hand as equity CIO; and more.
Investors from China and the US are expected to continue buying assets in each other’s markets despite the blacklist of Chinese firms with military and surveillance ties.