It will invest in equities from stock exchanges in these countries, targeting long-term returns from capital growth and income.
It also has the ability to invest up to 25 per cent in non-CIVETS nations, including Mexico, Nigeria, the Philippines, Thailand, Malaysia and Saudi Arabia.
HSBC says these countries share the attractive demographics of the CIVETS: each possesses a relatively diverse and dynamic economy but, unlike much of the emerging world, does not rely heavily upon external demand or commodity exports.
In addition, the CIVETS display a relatively low level of public, corporate and household debt.
The firm has capped investments in Indonesia, Turkey and South Africa at 25 per cent to ensure appropriate diversification to the portfolio, while keeping target investment allocation in Egypt at a lower 7.5 per cent.
Despite Egypt’s recent political unrest, which could impede growth in the short-term, HSBC says it remains confident in the country’s economic promise.
It cites its young population, previously untapped natural gas resources and rapidly expanding ports as expedients for long-term growth.
The fund will be managed by Douglas Helfer (pictured above right), current manager of the HSBC GIF Russia Equity fund, with Basak Yavuz and Andrew Brudenell serving as his co-managers.
Nick Timberlake, global head of emerging market equities, will oversee the overall management of the fund.