What's New In Investments, Funds? - UOB, HSBC Global AM

Editorial Staff

5 November 2019

United Overseas Bank
has launched a Chinese government local bond index fund, designed to tap into the Asian nation’s sector. The Ireland-domiciled fund tracks performance of the Bloomberg China Treasury and Policy Bank 9 per cent Capped Bond Index.

The HSBC Global Funds ICAV will be managed by HSBC Global Asset Management’s passive fixed income team, led by head of passive fixed income, Sebastien Faucher. The team manages around $6.9 billion of assets in different strategies.

“With global yields at historically low levels, investing in China onshore bonds can offer investors the yield premiums they are searching for. At the same time, our view is that this asset class is far less impacted by global risk sentiment, offering compelling diversification benefits,” Faucher, said.

“As China opens up its bond market to overseas investors, foreign ownership in its onshore government bonds and policy bank bonds has picked up to around 8 per cent and 3 per cent respectively and is expected to rise further in the coming months. This presents significant opportunities, and our China presence and expertise mean we’re ideally positioned to help investors seize them,” Faucher said.