Asian Fixed Income

The strategy invests primarily in investment grade credits denominated in US dollars from the Asian region where the credit quality is sound and improving

Our philosophy

• We believe that the inefficiencies of the Asian credit market can be identified by the careful and disciplined analysis of Asian economic and industry cycles as well as individual issuers and issues. By combining local insights together with a truly global perspective, we believe our portfolios can deliver superior risk-adjusted returns in a risk controlled framework

Our process

• We operate a unique and robust investment process built on solid proprietary research
• We have a stable, well-resourced and award-winning team with over 30 investment professionals and credit research analysts based in 4 offices across Asia

HSBC strengths

• We have been managing Asian fixed income since 1996
• Our team benefits from our global credit research platform which utilises the expertise of over 48 seasoned sector specialists across the world
• We benefit from the goodwill and strong relationships that come with being a part of the HSBC Group, and our strong insight into client needs through on-the-ground presence

Risk considerations:

The value of investments may go down as well as up and you may not get back the amount originally invested. Fixed income is subject to credit and interest rate risk. Investments in high yield securities (commonly referred to as “junk bonds”) are often considered speculative investments and have significantly higher credit risk than investment grade securities. The prices of high yield securities, which may be less liquid than higher rated securities, may be more volatile and more vulnerable to adverse market, economic or political conditions. Investments in emerging markets are by their nature higher risk and potentially more volatile than those inherent in some established markets. Derivatives can be illiquid, may disproportionately increase losses and may have a potentially large negative impact on performance.

Aims to achieve a higher level of income and capital appreciation through investing primarily in a diversified portfolio of higher yielding fixed income securities including investment grade, non-investment grade and unrated bonds that are primarily USD denominated, traded or issued by issuers in the Asian markets.

Our philosophy

We believe that the inefficiencies of the Asian credit market can be identified by the careful and disciplined analysis of Asian economic and industry cycles as well as individual issuers and issues. By combining local insights together with a truly global perspective, we believe our portfolios can deliver superior risk-adjusted returns in a risk controlled framework.

Our process

• We operate a unique and robust investment process built on solid proprietary research
• We have a stable, well-resourced and award-winning team with over 30 investment professionals and credit research analysts based in 4 offices across Asia

HSBC strengths

• We have been managing Asian fixed income since 1996
• Our team benefits from our global credit research platform which utilises the expertise of over 48 seasoned sector specialists across the world
• We benefit from the goodwill and strong relationships that come with being a part of the HSBC Group, and our strong insight into client needs through on-the-ground presence

Risk considerations:

The value of investments may go down as well as up and you may not get back the amount originally invested. Fixed income is subject to credit and interest rate risk. Investments in high yield securities (commonly referred to as “junk bonds”) are often considered speculative investments and have significantly higher credit risk than investment grade securities. The prices of high yield securities, which may be less liquid than higher rated securities, may be more volatile and more vulnerable to adverse market, economic or political conditions. Investments in emerging markets are by their nature higher risk and potentially more volatile than those inherent in some established markets. Derivatives can be illiquid, may disproportionately increase losses and may have a potentially large negative impact on performance.

The strategy invests in investment grade, high yield and non-rated Indian domestic fixed income securities denominated in INR and other currencies hedged back into Indian rupee

Our philosophy

• We believe that by combining the opportunity sets for Indian fixed income, we shall be able to produce superior risk-adjusted returns over the medium to long term

Our process

• Our dedicated onshore team in Mumbai covers domestic Indian bonds while our regional team in Hong Kong covers offshore USD Indian credit
• With 26 years of investment experience, the lead fund manager oversees a robust investment process built on solid proprietary research

HSBC strengths

• We have been managing Asian fixed income since 1996
• Our team benefits from our global credit research platform which utilises the expertise of over 48 seasoned sector specialists across the world
• We benefit from the goodwill and strong relationships that come with being a part of the HSBC Group, and our strong insight into client needs through on-the-ground presence

Risk considerations:

The value of investments may go down as well as up and you may not get back the amount originally invested. Fixed income is subject to credit and interest rate risk. Investments in high yield securities (commonly referred to as “junk bonds”) are often considered speculative investments and have significantly higher credit risk than investment grade securities. The prices of high yield securities, which may be less liquid than higher rated securities, may be more volatile and more vulnerable to adverse market, economic or political conditions. Investments in emerging markets are by their nature higher risk and potentially more volatile than those inherent in some established markets. Derivatives can be illiquid, may disproportionately increase losses and may have a potentially large negative impact on performance.