What's New In Investments, Funds? – HSBC Asset Management

Editorial Staff

18 December 2024

HSBC Asset Management
HSBC Asset Management, part of , has launched the HSBC GIF Strategic Duration and Income Bond, which is available to retail investors in Hong Kong.

The fund mainly consists of developed market bonds, such as investment grade and non-investment grade fixed income and other similar securities. The fund strategy is to seize opportunities while navigating uncertainties in interest rate cycles.

The fund, which invests in mid-term bonds with an average duration of three to eight years, aims to offer a fixed monthly pay-out of 7 per cent.

“Given changing market dynamics, the fund tactically manages duration while taking a holistic investment view across multiple fixed income sectors, and can help investors balance and diversify plus mitigate volatility,” the fund manager, Oliver Boulind, head of global credit, HSBC Asset Management, said. “For example, high-yield and short-duration bonds may be attractive during economic expansion when interest rates are high. Conversely, long-duration government bonds may outperform if the economic outlook worsens.”

The base currency of the fund is the US dollar. Share classes are also available in Hong Kong dollars, Australian dollars, Canadian dollars, the euro, sterling, Japanese yen, renminbi, the New Zealand dollar, and the Singapore dollar.

Charles Li, head of wholesale, Asia, HSBC Asset Management, said: “Rising uncertainties in the global markets are likely to translate to a more volatile market environment where the prediction of interest rate movements over a longer time horizon is always challenging, even for financial practitioners. As such, investors should think hard about diversification by having a mix of fixed income investments with different maturities. For bond investors, a mid-term investment strategy can help lower interest rate risk and could be a good way to generate income and growth potential with agility.”