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HSBC Asian Fixed Income

The flexibility to provide stability or higher income

Awards

The Asian fixed income market has undergone transformative developments over the years and has become an increasingly important asset class for global investors. An allocation to Asian fixed income can provide investors with diversification benefits and exposure to the growing opportunities in Asia’s dynamic economies. At HSBC Asset Management, we have been investing in Asian fixed income markets throughout various market cycles for nearly 25 years. Our award winning Asian fixed income team continues to stay focused on generating alpha even in times of market uncertainty.

Why invest in Asian fixed income?

Asia is made up of economies at different phases of economic development, while unified in terms of growth direction, and diversified in terms of government policies and market conditions

The Asian fixed income market is diverse in nature and is made up of various countries/regions, sectors, tenors and credit buckets

Diversified composition
Source: IMF, Bloomberg, HSBC Asset Management, as of May 2020. Credit rating is expressed as sovereign rating from Moody’s/S&P’s. GDP per capita is based off IMF forecasts for 2019 in US dollar

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 accepts no liability for any failure to meet such forecasts, projections or targets. For illustrative purposes only.

The Asian fixed income market is large and is sized at over USD 19 trillion, after having grown phenomenally just in the past 10 years

The Asian fixed income market has undergone transformative developments over the years, particularly due to China’s steady efforts to open up its capital markets to global investors, resulting in ongoing inclusion of Chinese onshore assets into key global indices

Asia USD bond market size – JACIAsia local currency bond market size
Source: JP Morgan, Asianbondsonline, as of March 2020

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 accepts no liability for any failure to meet such forecasts, projections or targets. For illustrative purposes only.

Valuations of Asia dollar corporate bonds are attractive on a relative and historical basis

Investment grade marketsHigh yield markets
Source: JP Morgan, Bank of America Merrill Lynch, as of 9 October 2020.

Asian local government bond yields offer a yield premium versus other regions

Asian local government bond yields
Source: Bloomberg as of 9 October 2020

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 accepts no liability for any failure to meet such forecasts, projections or targets. For illustrative purposes only.

HSBC Asian Fixed Income: Survival of the Fittest


HSBC Global Asset Management has been investing in Asian fixed income over many market cycles

HSBC has been investing in Asian fixed income over many market cycles
Source: HSBC Global Asset Management, as of October 2020

HSBC’s Asian fixed income capabilities have been ranking at the top of their respective peer groups

Morningstar peer group quartile ranking as of 31 December 2020


Source: Morningstar as of 31 December 2020. Peer ranking is based on the respective bond universe under Morningstar category: HSBC Asian High Yield Bond strategy under the Morningstar Asia High Yield Bond category, HSBC Asia Bond Strategy under the Asia Bond category, HSBC RMB Fixed Income under the RMB Bond category.
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 accepts no liability for any failure to meet such forecasts, projections or targets. For illustrative purposes only.


Why HSBC Global Asset Management for Asian fixed income

Key Asian fixed income strategies

Key Asian fixed income strategies
Source: HSBC Global Asset Management as at October 2020.
Any portfolio characteristics shown herein, including strategy and allocations among others, are for illustrative purposes only. The characteristics may differ by product, client mandate or market conditions. Information may be changed from time to time without notice.

 

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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. This page 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.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Investors and potential investors should not invest in the Fund solely based on the information provided in this document and should read the prospectus (including the risk warnings) and the product highlights sheets, which are available upon request at HSBC Global Asset Management (Singapore) Limited (“AMSG”) or our authorised distributors, before investing. You should seek advice from a financial adviser. Investment involves risk. Past performance of the managers and the funds, and any forecasts on the economy, stock or bond market, or economic trends that are targeted by the funds, are not indicative of future performance. The value of the units of the funds 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. 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.

HSBC Global Asset Management (Singapore) Limited
10 Marina Boulevard, Marina Bay Financial Centre, Tower 2, #48-01, Singapore 018983
Telephone: (65) 6658 2900 Facsimile: (65) 6225 4324
Website: www.assetmanagement.hsbc.com/sg
Company Registration No. 198602036R