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Thursday, 05 August 2010 12:00

HSBC Global Asset Management has unveiled a new global inflation linked bond fund.

The product invests in a diversified portfolio of inflation linked bonds issued by countries including Australia, Canada, the UK and the US.

It follows a quantitative management approach, which the organisation claimed has been successfully implemented since 2000.

The body noted inflation pressure is likely to come from strong economic growth from emerging countries.

Jean-Charles Bertrand, chief investment officer of quantitative strategies for HSBC, described inflation linked bonds as "the most effective hedge against inflation".

He added they also demonstrate low correlation to nominal bonds and diversify a fixed-income portfolio.