HSBC Global Asset Management yesterday said it has launched its first dedicated Singapore dollar income bond fund for retail investors here. The minimum investment sum stands at $1,000, and investors may buy into the fund at any HSBC retail banking branch, said a spokesman.
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 in different market cycles.
HSBC Global Asset Management South-east Asia chief executive Puneet Chaddha said: "We launched the fund as 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 Gregory Suen said: "Asia remains one of the fastest-growing regions and an important investment theme offering competitive yield and valuable diversification at lower risk... We believe good economic growth in Asia will continue."