HSBC fund mobilises $500 million

HSBC Investments' BRIC Freestyle Fund has mopped up around $500 million from global investors. The fund was launched recently in Hong Kong for a minimum investment of $1,000.

The fund has been floated to capture the investment opportunities in the emerging markets of Brazil, Russia, India and China (BRIC). Nick Timberlake, head of global emerging markets equities, said, "Investors cannot afford to miss the investment opportunities of these four high growth markets."

Brazil is firmly set on a path of sustained growth. Its gross domestic product rose sharply to 5.2 per cent in 2004 from 1.2 per cent (annualised) in 2003.

Russia's economy is well supported by its high commodity prices, with expected growth of 10 per cent in 2005. India's strong economic growth will be sustained by a growing affluent population, which is driving domestic consumption currently.

China will continue to benefit from robust export demand and rising domestic consumption.

Commenting on the fund's investment strategy, Timberlake said, "The BRIC Freestyle Fund is an ideal solution for investors who wish to capitalise on the extraordinary opportunities ."

Offered by the 21st century emerging market giants. Stock selection is key to success in emerging market investments."

By adopting a 'freestyle total return investing' approach, the fund focuses on stock selection without benchmark constraints. As emerging markets can be relatively volatile, risk management is also crucial.

"With a strong team of local experts who adhere to a strict buy-and-sell discipline and continue to deliver performance, HSBC Investments aims to optimise returns for our investors," he pointed out.

The BRIC giants' average GDP growth from 2003 and 2004 were 5.5 per cent (annualised) and 7 per cent, respectively, which were well above the global economic growth rates of 2 per cent and 3.6 per cent for 2003 and 2004, respectively.

Supported by improving economic fundamentals, government and corporate reforms and increasing economic freedom, the BRIC economies are progressively catching up with the developed world.

The incremental demand from BRIC economies could exceed that of the current G6 nations by 2010.