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Article: MULTI-MANAGEMENT: African dawn for HSBC.(HSBC Bank invests in African fund)(Brief article)
- Article from:
- Money Marketing
- Article date:
- June 28, 2007
CopyrightCOPYRIGHT 2007 Centaur Communications Limited. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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HSBC's OpenFunds global return fund has invested in a specialist African fund, spotting a low correlation with developed markets and other emerging markets.
HSBC says market capitalisation in Africa is low, resulting in lack of liquidity and preventing investors from accessing these markets.
It sets the threshold for higher liquidity at $50m, saying once this level is reached, investment banks might pile in. It believes this is the point where non-correlation with other markets will break down, so it is keen to invest now.
The multi-manager team has taken a small position in the Imara African opportunities fund which diversifies across ...