HSBC's new funds of hedge funds will target all segments of the Australian investing market.
HSBC Alternative Investments Limited (HAIL) will be rolled out to financial planners, institutional clients and asset consultants in the new year.
"HAIL is the third largest client adviser in the hedge funds industry globally and we intend to at least match that strength in the Australian market," HSBC Bank Australia chief executive Stuart Davis said.
The group will offer multi-manager and multi-strategy as well as geography-specific and strategy-specific options to investors.
It will specialise in absolute return funds and offer diversified portfolios of hedge funds.
HAIL will act as an investment adviser to funds of hedge funds. It will offer tailored institutional portfolios and construct structured products.
"As a mature financial market and an early adopter of alternative products, we see Australia as arguably the most significant opportunity for alternative investment funds in Asia over the next five to 10 years," HSBC Alternative Investments global head of sales and marketing Patrick Tuohy said.
HAIL's first product to market will be the HSBC Australia Special Opportunities Fund, a concentrated fund of funds focused on corporate events, such as mergers, restructurings and stressed and distressed securities, as well as activist managers.
Investment decisions are made by an committee of fund specialists in Sydney, London, New York, Geneva, Hong Kong, Tokyo and Singapore.
