HSBC Asset Management Offers ESG Short Duration Credit Bond Sub-Fund to HSBC Retail & Private Banking Clients in Singapore, Focusing on Crossover Bonds Between Investment-Grade & High-Yield Markets with Opportunities on Price Distortions or Forced Selling
7th June 2023 | Hong Kong
HSBC Asset Management with $641 billion AUM (Assets under Management) is offering HGIF (HSBC Global Investment Funds) ESG Short Duration Credit Bond Sub-Fund to HSBC retail & private banking clients in Singapore, focusing on crossover bonds between investment-grade & high-yield markets with opportunities on price distortions or forced selling. Crossover bonds are corporate bonds rated between low BBB and high BB that sit at the intersection of the investment-grade and high-yield markets. The Sub-Fund is exclusive for HSBC retail and private banking customers in Singapore until 30 September 2023. HSBC: “The Sub-Fund is designed to capture positive environmental, social and governance (ESG) characteristics relative to the investment universe based on HSBC’s proprietary ESG and Lower Carbon Criteria. With uncertainty still ahead on inflation, interest rates, and economic growth, shorter duration bond funds are compelling in the current environment as they may carry less risk than those with longer duration. They are less sensitive to interest rates moves and may have lower price volatility through the “pull-to-par” effect. The US crossover bond space is a large and diversified segment that is close to $1.7 trillion in market size. In this space, we see compelling risk-adjusted returns for crossover bonds as investors can find opportunities due to price distortions or forced selling in the market.” More info below:
“ HSBC Asset Management Offers ESG Short Duration Credit Bond Sub-Fund to HSBC Retail & Private Banking Clients in Singapore, Focusing on Crossover Bonds Between Investment-Grade & High-Yield Markets with Opportunities on Price Distortions or Forced Selling “
Patrice Conxicoeur, CEO and Head of Southeast Asia, HSBC Asset Management (Singapore): “Amid market volatility, it has become even more critical for investors to approach sustainable investing as part of their long-term strategy. Companies that manage their ESG risks and create value for stakeholders – employees, customers, suppliers, the environment, and wider society – are more likely to survive through cycles and thrive in the long term.”
Jeffrey Yap, Head of Investments and Wealth Solutions, HSBC Global Private Banking (Southeast Asia):“We strive to provide investment solutions that cater to client’s diverse needs and values. With this Sub-Fund, investors now have a unique opportunity to invest in such fixed-income securities while also supporting companies meeting certain ESG rating and lower carbon intensity criteria. Investors looking for a long-term total return investment strategy that aligns with their values surrounding ESG principles will find this Sub- Fund a compelling option.”
HGIF (HSBC Global Investment Funds) ESG Short Duration Credit Bond Sub-Fund
The Sub-Fund is exclusive for HSBC retail and private banking customers in Singapore until 30 September 2023.
The minimum subscription sum for the HGIF – ESG Short Duration Credit Bond Sub- Fund is SGD1,000. The Sub-Fund’s base currency is in USD, but SGD, AUD, EUR, and GBP hedged classes are also available to investors. It aims to provide long term return by investing in a diversified portfolio of bonds with an expected average duration of between 1 and 3 years and an average credit rating of Investment Grade, while promoting ESG characteristics within the meaning of Article 8 of Sustainable Finance Disclosure Regulation (SFDR).
This Sub-Fund represents a unique option for investors as it capitalises on the compelling risk/return potential of crossover bonds while balancing the current yields in short duration fixed income today.
The Sub-Fund is now open for subscription. Customers who wish to find out more may contact their HSBC relationship manager or visit any HSBC branch.
The Sub-Fund is designed to capture positive environmental, social and governance (ESG) characteristics relative to the investment universe based on HSBC’s proprietary ESG and Lower Carbon Criteria. With uncertainty still ahead on inflation, interest rates, and economic growth, shorter duration bond funds are compelling in the current environment as they may carry less risk than those with longer duration. They are less sensitive to interest rates moves and may have lower price volatility through the “pull-to-par” effect. The US crossover bond space is a large and diversified segment that is close to $1.7 trillion in market size. In this space, we see compelling risk-adjusted returns for crossover bonds as investors can find opportunities due to price distortions or forced selling in the market.
The Hongkong and Shanghai Banking Corporation Limited
The Hongkong and Shanghai Banking Corporation Limited is the founding member of the HSBC Group. HSBC serves customers worldwide from offices in 62 countries and territories. With assets of US$2,990bn at 31 March 2023, HSBC is one of the world’s largest banking and financial services organisations.
HSBC Singapore
HSBC opened its first branch in Singapore in 1877. A qualifying full bank serving international needs of individual, corporate and institutional clients, HSBC in Singapore offers a comprehensive range of banking and financial services including retail banking and wealth management; commercial, investment and private banking; insurance; forfaiting and trustee services; securities and capital markets services. It was recognised by Asiamoney as “Best International Bank in Singapore” in 2022.
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