HSBC Asian Fixed Income
Asia credit shines amidst global market volatility
At a time of increased risks and uncertainties in major developed markets in the West, Asia bonds’ investment case has particular appeal, with support factors coming from China’s reopening and the much improved local fundamentals in ASEAN countries.
Why Asian fixed income?
Asia credit in the Year of the Rabbit
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Asian bonds stand out against other global bonds for their yield advantage and relatively low duration
Source: HSBC Asset Management, January 2023.
Investment involves risks. Past performance is not indicative of future performance. Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. HSBC Asset Management accepts no liability for any failure to meet such forecasts, projections or targets. For illustrative purposes only.
Why HSBC Asset Management?
Source: HSBC Asset Management, January 2023. HSBC Asset Management’s awards include Best of the Best Awards for Asian Bond House category by Asia Asset Management 2015, 2016, 2017, 2018, 2020, 2021, according to Asia Asset Management as of December 2022. Note: Representative overview of the investment process, which may differ by product, client mandate or market conditions. For illustrative purpose only.
Key HSBC Asian fixed income strategies
HSBC Global Investment Funds – Asia High Yield Bond Sub-Fund
- Aims to provide long term total return by investing in a portfolio of Asian high yield bonds
- Current Fund size stands at USD 1,352,114,9811
- As of 31 December 2022, the sub-fund’s annualised dividend yield for Share Class AM3HSGD was 12.76%2
1. HSBC Asset Management, data as at 31 December 2022
2. Source: HSBC Asset Management, as of 31 December 2022. As disclosed in the sub-fund’s prospectus and product highlight sheet, the sub-fund may pay dividends out of capital and/or from income gross of expenses, and the dividend is not guaranteed with amount and payment frequency determined at the Manager’s discretion. Dividend paid from capital may result in capital erosion and reduction in net asset value. The sub-fund may invest in financial derivative instruments for investment purpose which may lead to higher volatility to its net asset value. A positive distribution yield does not imply a positive return. Past distribution yields and payments do not represent future distribution yields and payments. Historical payments may be comprised of both distributed income and capital. The calculation method of annualised yield: ((1+ (dividend amount/ ex-dividend NAV))^12) – 1. The annualized dividend yield is calculated based on the dividend distribution on the relevant date with dividend reinvested, and may be higher or lower than the actual annual dividend yield.
The sub-fund was incepted on 14 April 2020. HSBC Asset Management, data as at 31 December 2022
For the Share Class AM3HSGD, the proportion of dividend paid out of distributed income was 62.78% and the proportion paid out of capital was 37.22%. The annualized volatility for the Share Class AM3HSGD was 15.25% as of 31 December 2022.
HSBC Global Investment Funds – Asia Bond Sub-Fund
- The Fund aims to provide long term total return by investing in a portfolio of Asian bonds
- Current Fund size stands at USD 479,700,5791
- As of 31 December 2022, the sub-fund’s annualised dividend yield for Share Class AM3HSGD was 5.24%2
1. HSBC Asset Management, data as at 31 December 2022
2. Source: HSBC Asset Management, as of 31 December 2022. As disclosed in the sub-fund’s prospectus and product highlight sheet, the sub-fund may pay dividends out of capital and/or from income gross of expenses, and the dividend is not guaranteed with amount and payment frequency determined at the Manager’s discretion. Dividend paid from capital may result in capital erosion and reduction in net asset value. The sub-fund may invest in financial derivative instruments for investment purpose which may lead to higher volatility to its net asset value. A positive distribution yield does not imply a positive return. Past distribution yields and payments do not represent future distribution yields and payments. Historical payments may be comprised of both distributed income and capital. The calculation method of annualised yield: ((1+ (dividend amount/ ex-dividend NAV))^12) – 1. The annualized dividend yield is calculated based on the dividend distribution on the relevant date with dividend reinvested, and may be higher or lower than the actual annual dividend yield.
The sub-fund was incepted on 13 April 2018. HSBC Asset Management, data as at 31 December 2022
For the Share Class AM3HSGD, the proportion of dividend paid out of distributed income was 47.61% and the proportion paid out of capital was 52.39%. The annualized volatility for the Share Class AM3HSGD was 7.63% as of 31 Dec 2022.
HSBC Global Investment Funds – SGD Income Bond Sub-Fund
- Aims to provide long term total return by investing in a portfolio of bonds denominated in or hedged into Singapore Dollars (SGD)
- Current Fund size stands at SGD 197,782,7171
- As of 31 December 2022, the sub-fund’s annualised dividend yield for Share Class AM2 was 4.98%2
1. HSBC Asset Management, data as at 31 December 2022
2. Source: HSBC Asset Management, as of 31 December 2022. As disclosed in the sub-fund’s prospectus and product highlight sheet, the sub-fund may pay dividends out of capital and/or from income gross of expenses, and the dividend is not guaranteed with amount and payment frequency determined at the Manager’s discretion. Dividend paid from capital may result in capital erosion and reduction in net asset value. The sub-fund may invest in financial derivative instruments for investment purpose which may lead to higher volatility to its net asset value. A positive distribution yield does not imply a positive return. Past distribution yields and payments do not represent future distribution yields and payments. Historical payments may be comprised of both distributed income and capital. The calculation method of annualised yield: ((1+ (dividend amount/ ex-dividend NAV))^12) – 1. The annualized dividend yield is calculated based on the dividend distribution on the relevant date with dividend reinvested, and may be higher or lower than the actual annual dividend yield.
The sub-fund was incepted on 2 March 2018. HSBC Asset Management, data as at 31 December 2022
For the Share Class AM2, the proportion of dividend paid out of distributed income was 39.05% and the proportion paid out of capital was 60.95%. The annualized volatility for the Share Class AM2 was 4.66% as of 31 December 2022.
Resources
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2023 outlook for Singapore Dollar bonds |
The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested. Past performance is not a reliable indicator of future performance. Any views and opinions expressed are subject to change without notice. Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. We accept no liability for any failure to meet such forecast, projection or target. This page is prepared for general information purposes only and does not have any regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive it. Any views and opinions expressed are subject to change without notice. This document does not constitute an offering document and should not be construed as a recommendation, an offer to sell or the solicitation of an offer to purchase or subscribe to any investment.
Important Information
This document provides and may include a high level overview of the recent economic environment, and is for information purposes only. This document is not meant for retail audience and does not constitute an offering document and should not be construed as a recommendation, an offer to sell or the solicitation of an offer to purchase or subscribe to any investment nor should it be regarded as investment research. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of its dissemination. This document has not been reviewed by The Monetary Authority of Singapore (the “MAS”).
HSBC Global Asset Management (Singapore) Limited (“AMSG”) has based this document on information obtained from sources it reasonably believes to be reliable. However, AMSG does not warrant, guarantee or represent, expressly or by implication, the accuracy, validity or completeness of such information. Any views and opinions expressed in this document are subject to change without notice. It does not have regard to the specific investment objectives, financial situation, or needs of any specific person. Investors and potential investors should not make any investment solely based on the information provided in this document. You should seek advice from a financial adviser. Investment involves risk. Past performance and any forecasts on the economy, stock or bond market, or economic trends are not indicative of future performance. The value of investments and income accruing to them, if any, may fall or rise and investor may not get back the original sum invested. Changes in rates of currency exchange may affect significantly the value of the investment.
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HSBC Global Asset Management (Singapore) Limited
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Telephone: (65) 6658 2900 Facsimile: (65) 6225 4324
Website: www.assetmanagement.hsbc.com.sg
Company Registration No. 198602036R