HSBC Global Asset Management (Malta) Limited has achieved an important milestone - that of surpassing the €1 billion mark in terms of asset management and distribution. The Malta Business Weekly spoke to Managing Director, Muriel Rutland, about how the business has fared since operations began 20 years ago in 1996 and her team's plans for the future.

Q. Can you give us an overview of HSBC Global Asset Management (Malta) Limited?

MR: HSBC Global Asset Management (Malta) Ltd is part of the HSBC Global Asset Management network with €383 billion in assets under management as at December 2015 and has a presence in over 26 countries and territories worldwide.

Investment products include equity, fixed income, liquidity, and alternative strategies. HSBC Global Asset Management Malta leverages the global footprint of HSBC worldwide, giving it a unique perspective in Malta. On the other hand, it leverages on its local expertise in delivering consistently strong investment performance in its global range of investment strategies while operating within a defined, disciplined framework.

Q. When was HSBC Global Asset Management Malta set up?

MR: The Company was incorporated in 1996, and is a wholly-owned subsidiary of HSBC Bank Malta p.l.c. It was later licensed by the Malta Financial Services Authority as an Alternative Investment Fund Manager in 2014. We will be celebrating our 20th anniversary later this year.

In 2015, HSBC Global Asset Management Malta reached an important milestone of managing and distributing over €1 billion across retail funds and institutional mandates. Through its collaboration with specialised offices worldwide within the HSBC Group, it provides easy and affordable access to a truly global asset management platform. HSBC Global Asset Management Malta boasts of wide experience in managing fixed income and equity on both the Maltese and international fronts.

Q. Which fund ranges does HSBC Global Asset Management Malta manage and distribute?

MR: The team in Malta manages six local funds: Malta Bond Fund, Malta Government Bond Fund, Maltese Assets Fund, International Bond Fund, Equity Growth Fund and HSBC Property Investment Fund. All funds are distributed through HSBC Bank Malta's branch network.

In addition, we distribute four global fund ranges managed in other HSBC Global Asset Management sites: HSBC World Selection Portfolios, HSBC Global Investment Funds, HSBC Global Liquidity Funds and the recently launched HSBC Select Funds.

World Selection has been a real success story here in Malta. The fund range is advised as a 'managed solution' among retail investors and has had net inflows of around €40m in 2014 and 2015.

The Company also offers fund management and advisory services to institutional clients.

Q. How are the local funds performing?

MR: During the past year, despite the challenging market environment, our three flagship Funds have been enjoying a strong performance. The local bond funds - Malta Bond Fund and Malta Government Bond Fund - registered a performance of +3.66% and +4.80% respectively during the twelve months ending 30 June 2016. While in the case of Maltese Assets Fund, the fund registered a performance of +13.66% during the same period.

(For more information on the local funds, see sidebar)

Sidebar   The Malta Bond Fund (MBF) is an aggregate bond fund focused on the Maltese market. The Fund was launched in 1997 and is managed by David Lanzon, CFA.   Since inception, the MBF has registered an annualised performance of +5.25%.   The Malta Government Bond Fund (MGBF) invests principally in debt securities issued by the Government of Malta. This Fund was launched in 1998 and is also managed by David Lanzon, CFA.   Since inception, the MGBF has registered an annualised performance of +4.37%.   The Maltese Assets Fund (MAF) is a multi-asset fund which invests in Maltese equities and debt securities in Malta. The Fund was launched in 1998 and is managed by Lisa Vella, CFA.   Since then, the Fund has registered an annualised performance of +5.64%.   Source: HSBC Global Asset Management (Malta) Ltd

Q. Tell us more about the local and target market

MR: The majority of our funds are targeted mainly at retail investors. Most Maltese retail investors prefer to invest in the domestic market, particularly fixed income. This preference was reinforced by the fact that Malta's economy remained resilient during the eurozone crisis. A number of other funds are targeted at more seasoned investors wanting to tap specific markets globally. More information about the funds can be obtained by meeting any one of our Financial Advisers in the branch network.

Q. How big is the Asset Management team in Malta? Can you describe your operations?

MR: The Malta team is made up of 13 full-time employees. Between us we cover various roles including investment management, risk management, business development, compliance and operations.

Being part of a global network, HSBC Global Asset Management Malta is able to leverage on robust systems and tools in the day-to-day investment and risk management operations and make use of a common middle office infrastructure.

This allows the team to focus on investment management, predominantly for the domestic market, and on maintaining a close relationship with the Bank's global functions and distribution channels.

Q. Finally, what are your main business priorities or ambitions for 2016?

MR: Following the performance success during 2015, our focus is to maintain this healthy performance of the local fund range also in 2016.

We're excited to have just introduced the distribution of HSBC Select Funds specifically targeted for HSBC Premier customers. Previously only available to HSBC Group's Private Banking clients, the HSBC Select range of funds opens up the Bank's renowned expertise in asset management to its Premier customers through a dedicated management team, drawing on HSBC's international scope and presence in the principal financial centres around the world.

HSBC Select is being offered in five portfolios with varying risk and returns profiles and is subject to a minimum initial investment of €50,000.

Photocaption: HSBC Global Asset Management (Malta) Ltd Managing Director Muriel Rutland

 

The opinions expressed herein should not be interpreted as investment advice. The performance figures quoted refer to the past and past performance is not a guarantee of future performance or a reliable guide to future performance. The value of the investment can go down as well as up. Currency fluctuations may affect the value of the investment. Investments should be based upon the full details contained in the prospectus of the respective Fund, which may be obtained from all branches of HSBC Bank Malta p.l.c. Issued by HSBC Global Asset Management (Malta) Ltd, Business Banking Centre, Mill Street, Qormi QRM 3101, Company Reg No C20653 which is licensed to provide investment services by the Malta Financial Services Authority.