HSBC Global Asset Management has launched two new funds investing in emerging market debt, one investing in a mixture of corporate and sovereign investment grade bonds and one focusing on purely corporate debt.

Both funds are managed by a team led by Guillermo Osses, head of global emerging market debt portfolio management at HSBC GAM. They form part of the asset manager’s Global Investment Funds SICAV range, based in Luxembourg, and add to a number of emerging market debt funds already run by the firm.

The HSBC GIF Global Emerging Markets Investment Grade Bond fund will buy investment grade securities of both emerging market governments and firms. It is benchmarked against the JP Morgan GBI-Emerging Markets Global Diversified Investment Grade Index and the JP Morgan EMBI Global Investment Grade Index on a 50/50 basis.

The HSBC GIF Global Emerging Markets Corporate Debt fund will invest in both investment grade and sub-investment grade corporate securities from companies that are based in or carry out a relevant part of their business in emerging markets. It is benchmarked against the JP Morgan Corporate Emerging Markets Bond Index – Diversified.

“The opportunities in the emerging markets corporate debt and investment grade debt space are growing, as the world’s centre of gravity continues to shift toward the developing world,” said Peter Marber, the firm’s chief emerging markets business strategist.

There are three share classes available for each fund, with minimum investments of $5,000, $1 million and $5 million. Annual management charges for the investment grade fund are 1.1 per cent, 0.475 per cent and 0.45 per cent for the three share classes respectively; for the corporate debt fund the applicable charges are 1.5 per cent, 0.75 per cent and 0.7 per cent.