Global Credit
Our global credit strategies seek attractive risk-adjusted returns with an emphasis on income and yield.
Our philosophy
Our global credit strategies invest in securities with stable or improving fundamentals, focusing on mispriced risks.
- Issuer and bond selection are our main performance drivers
- We use a regional approach, breaking down the investment universe into US, Europe and emerging markets for enhanced diversification
Our process
We use our local credit management and credit research teams to determine issuer, regional, sector and credit allocations.
- Lead portfolio managers leverage the insights of local credit analysts and portfolio managers and actively allocate across regions (US, Europe and emerging markets)
- Identifying, pricing and combining risks is at the core of our investment approach
HSBC strengths
- Many of our global credit strategies use alternatively-weighted, customised benchmarks targeting more attractive risk-adjusted returns
- Proprietary fundamental and valuation research tools are critical to our investment decisions and our risk calibration techniques
- Over 45 sector specialists cover the global credit universe across investment grade, cross-over and high yield names
Global Corporate Bond Strategy
Aims to provide attractive risk-adjusted returns with broad exposure to global investment-grade corporate bonds.
Our philosophy
- Our risk-aware approach, local credit management and global credit research have been instrumental performance drivers
- Diversification is a key consideration in our benchmark and portfolio construction
Our process
- We have created a customised benchmark - the Bloomberg Barclays Global Aggregates Corporate Alternatively Weighted Scheme Index Hedged USD
- The benchmark includes mainly investment-grade corporate bonds denominated in USD, EUR and GBP, with exposure to bonds denominated in any given currency limited to below 50%
- Hedge to USD to mitigate volatility and provide returns that can then be hedged
HSBC strengths
- Our customised benchmark seeks to provide more attractive risk-adjusted returns over the medium-term than the traditional benchmark
- The geographic reach and local insights of our global credit platform support the investment team in sifting through the broad opportunity set
Global High Income Bond Strategy
Aims to generate attractive risk-adjusted returns and steady income by investing the crossover space - lower-rated investment-grade credit and higher quality high yield securities.
Our philosophy
- We believe bonds in the crossover space are inefficient as technical factors and market overreactions often lead to mispricing
- Certain investors are limited to investment grade credit and others to high yield. As a bond changes categories, managers are forced to sell, creating opportunities for managers that can hold transitioning bonds
Our process
- We have developed a customised investment universe to expand the investment grade opportunity set globally to include higher rated high yield credit
HSBC strengths
- By investing the crossover space, we are able to target the yield potential of high yield bonds while maintaining an overall lower risk profile
- Our credit analysts focus on specific credits rather than ratings, allowing for continuity in coverage to provide the investment team with in-depth insights on the credit
Global High Yield Bond Strategy
The strategy focuses on high yield opportunities in the US, Europe and emerging markets. We also manage a US Short Duration High Yield Bond strategy, which aims to provide attractive returns with lower duration and volatility.
Our philosophy
- Our risk-aware approach, local credit management and global credit research have been instrumental performance drivers
- Diversification is a key consideration in portfolio construction
Our process
- The strategy invests in high yield corporate bonds with the ability to invest in investment grade or lower rated high yield bonds opportunistically
- The lead fund manager allocates assets across US, Euro and emerging markets regions to capture different yield, quality, duration and volatility characteristics
HSBC strengths
- The geographic reach and local insights of our global credit platform support the investment team in sifting through the broad opportunity set
Source: Bloomberg, data as of 18 September 2020 Investment involves risks. Past performance is not indicative of future performance.
Important Information:
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 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 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
y