HSBC GIF Asia ex-Japan Equity
Our Asia ex Japan equity team employs a clear philosophy with a disciplined and repeatable process to generate alpha in the medium to long term by exploiting shorter term market inefficiencies.
For more information on the HSBC GIF Asia Ex-Japan strategy, contact us.
Our philosophy
We believe that Asian stock markets are inefficient, driven by short-term noise and sentiment. We seek to generate alpha by investing in companies aligned with secular growth trends that should drive significant and persistent growth over a multi-year horizon.
Our process
- The Asia ex-Japan Equity strategy is a large-cap-focused high-conviction strategy, with a bottom-up approach and a focus to invest in companies aligned with secular growth trends, which have yet to be discounted in valuation
- We aim to control unwanted macro and style risk exposures through a laser focus on portfolio construction, with returns expected to originate primarily from stock selection. This is especially important in volatile markets – we apply proprietary models to control our factor exposures and macro sensitivity such that majority of the risk of the portfolio is idiosyncratic and which is within our control
- The strategy employs continuous monitoring/reassessment of risk at the stock and portfolio level
HSBC strengths
- HSBC enjoys over 40 years of heritage and track record as an active manager in Asian equities
- We draw on the strong depth and breadth of resources dedicated to Asian equities through our local presence in our network of Asian markets within a globally connected investment network for additional perspectives
- We benefit from the goodwill and strong relationships that come with being a part of the HSBC Group and our strong insight into client needs through on-the-ground presence
What are the risks?
The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested.
- Where overseas investments are held the rate of currency exchange may also cause the value of such investments to fluctuate.
- Investments in emerging markets are by their nature higher risk and potentially more volatile than those inherent in some established markets.
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