HSBC launches Singapore-dollar income bond fund for local retail investors

The HSBC Global Investment Funds Singapore Dollar Income Bond, an Asia-focused fixed income fund, will invest in sectors and countries across the region.
The HSBC Global Investment Funds Singapore Dollar Income Bond, an Asia-focused fixed income fund, will invest in sectors and countries across the region. ST PHOTO: ALVIN HO

SINGAPORE - HSBC Global Asset Management on Thursday (March 8) said it has launched its first dedicated Singapore-dollar income bond fund for retail investors in the Republic.

The minimum investment sum stands at S$1,000, and investors may buy into the fund at any HSBC retail banking branch, a company spokesman told The Business Times.

The HSBC Global Investment Funds Singapore Dollar Income Bond, an Asia-focused fixed income fund, will invest in sectors and countries across the region. The fund is entirely denominated in, or hedged to the Singdollar.

It will invest at least 50 per cent in Singdollar-denominated bonds issued by governments, supranational bodies or corporations, while all other investments will be hedged to the Singdollar, HSBC said.

To enable diversification, it will also invest across a spectrum of countries and sectors that tend to behave differently at different market cycles.

Said South-east Asia CEO of HSBC Global Asset Management Puneet Chaddha: "We launched the fund because our retail customers want to grow their capital faster than the average savings rate, but in a way that's risk weighted and diversified. This fund gives them access to growth with limited downside exposure."

Separately, investment director of fixed income at HSBC Global Asset Management Gregory Suen said Asia remains one of the fastest-growing regions.

He said: "Asia remains one of the fastest-growing regions and an important investment theme offering competitive yield and valuable diversification at lower risk. Even amid a backdrop of increasing interest rates, we're positive on Asian credit because of the current macro sweet spot. We believe good economic growth in Asia will continue, and we don't expect inflation to significantly pick up."