HSBC expands global multimanager capability

HSBC Investments’ multimanager team has been expanded to incorporate a dedicated team of property fund selection experts.

This is an important step in HSBC Investments’ strategy to further enhance its global multi-asset class multimanager investment capability.

The Real Estate Multimanager team consists of seven property specialists headed by Guy Morrell. Morrell reports to Joanna Munro, Global Chief Investment Officer of HSBC Investments. In addition to being responsible for property fund selection internationally, as part of HSBC Investments’ broader multimanager capability, the team will also provide the capability to offer specialist property mandates and funds of funds.

Morrell and his team are based in the UK and have a global remit. There are plans in place for additional team members to be based in New York and Hong Kong in the near future. The UK-based team, which has worked together at HSBC for three years, has transferred internally from HSBC Specialist Investments (the HSBC Group’s dedicated property and infrastructure investment specialist) where it was responsible for analysing and selecting funds that invest in direct property and listed property securities on a global basis.

Munro said: “With the continued evolution of real estate as an asset class, and increasing demand for property fund selection expertise, the addition of a dedicated team of property experts supports our strategy to build upon our powerful global multi-asset class multimanager capability.”

The Real Estate Multimanager team will research funds that invest in both physical property and listed property securities throughout the world.

Morrell said: “HSBC Investments expects that it can enhance its clients’ risk/return profile by having the resources and expertise to research and select what it regards as the best property funds from throughout the world. It is important to take a global approach to property fund selection as return prospects vary by country. Furthermore, real estate markets generally show low correlation to each other and to other asset classes.”

HSBC Investments’ multimanager team has US$29.5 billion assets under management and a further US$30 billion assets under advice and monitoring (as at end June 2007). The group has one of the largest multimanager teams in the world, comprising more than 40 investment professionals (including the new property team) based at locations around the world, including the UK, Hong Kong, Toronto, New York, Bermuda, Sao Paulo, London, Paris, Dubai and Dusseldorf.