HSBC Global Asset Management (Canada) Ltd. Tuesday introduced a Global Inflation-Linked Bond Strategy for tax-exempt Canadian institutional investors via a new Canadian dollar denominated offshore global inflation-linked bond pool.

The pool is formally known as the Oblig Inflation World Fund.

HSBC says the offshore pool invests in the main developed government inflation linked bond markets and hedges that exposure back into Canadian dollars, mitigating currency risk. Investments are held from the United States and Canada as well as the euro zone, United Kingdom, Sweden, Japan and Australia.

The offshore pool is part of HSBC Global Asset Management’s group of funds and is managed by SINOPIA Asset Management. According to HSBC, it is the first global inflation-linked bond pool available in the Canadian market. It will initially be available to tax-exempt institutional investors, with a minimum investment of $1 million.

Marc Cevey, Chief Executive Officer, HSBC Global Asset Management (Canada) Limited, said, “Canadian institutional investors have not previously had access to a viable, fully diversified global real-return bond option.

“This new offshore pool delivers a global real return strategy fully hedged back to the Canadian dollar with less volatile returns than a pure domestic real return strategy,” says Marc Cevey, CEO, HSBC Global Asset Management (Canada) Ltd.

“Recent global economic stimulus coursing through the world’s economies will likely raise global inflationary pressures. This new offshore Global Inflation Linked Bond pool can help protect institutional investors from any future resurgence in global inflation,” Cevey adds.

SINOPIA is the quantitative investment manager of the HSBC Group and has its global headquarters in Paris. SINOPIA is recognized as the forerunner in introducing active quantitative management to Europe and has over $30.6 billion assets under management at June 30.

IE