HSBC Global Asset Management (HSBC GAM) has set up a fixed income fund aimed at investing in a portfolio of high yielding Asian bonds.
The HSBC GIF Asia High Yield Bond Fund will primarily invest in non-investment grade bonds, but may also take selective positions in investment grade and unrated bonds.
Alfred Mui, director and head of Asian Credit, and the lead manager of the strategy, said: “As negative yielding debt becomes a lot more common, Asian high yield bonds stand out as an asset class offering not only a yield advantage, but a diversification benefit for global investors.”
“Their low default rate, sound corporate fundamentals and strong demand are among other factors to consider when looking at this asset class.”
Managed by Mui and the firm’s Asian fixed income team using an active fundamental approach, the strategy will combine top-down macro assessment with bottom-up credit analysis.
As of the end of September, HSBC GAM manages $85 billion (€77.1 billion) in Asian fixed income assets, including $10 billion in Asian credit. The firm has been active in Asian credit since 1996.
Earlier in November the firm launched a Chinese government bond fund managed by its passive fixed income team.
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