The fund, which is managed by Jose Cuervo, was first launched in April 2010 and aims to tap into the growth potential of the Latin American region which HSBC said is benefiting from global commodity growth and robust domestic consumption. The portfolio will hold between 50 and 70 stocks.
According to Morningstar data, the Latin American market achieved an annualised return of 21.2% over the past 10 years to 30 November 2010, making it the top performing region globally. This compares with an 18.1% return over the same period for Brazil, Russia, India and China and 15.7% for overall emerging markets.
Furthermore, HSBC said, according to its research, four of the top 10 markets with the highest expected GDP growth in 2010 are from Latin America, including Uruguay, Peru, Argentina and Brazil.
Cuervo, who also manages the firm’s US$3bn Brazil Equity Fund, said: “In addition to commodities, robust consumption supported by a growing, wealthier working population, and stronger currencies are also long-term key growth drivers. While economic growth remains strong, potential monetary tightening is unlikely to have a severe impact on the economy.”
The Fund is available at HSBC branches and other selected distributors and the minimum investment is US$1,000.
