Asian Fixed Income
By providing access to the developing and inefficient fixed income markets in Asia, our Asian Fixed Income strategies aim to seek attractive risk-adjusted returns with an emphasis on income and yield for our investors.
RMB Fixed Income
Aims to provide long term capital growth and income in RMB terms by investing in RMB denominated debt securities
Our philosophy
- We believe RMB fixed income markets are developing and inefficient. Through a focused and disciplined investment process we can exploit investment opportunities arising from these inefficiencies to deliver superior risk-adjusted returns
Our process
- The investment process of RMB fixed income, in line with overall Global fixed income process, seeks to add value through active management of all key variables in the RMB bond markets
- It combines qualitative top-down analysis of macroeconomic and market dynamics, with structured bottom-up research into individual bond issuers and fixed income securities
HSBC strengths
- As a pioneer pivoting on China, HSBC is one of the most recognised global banks in the country, facilitating clients' needs and winning series of awards
- With over two decades of investment experience in Chinese assets, we are a well-resourced team with in-depth local insights and established investment process
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.
Asian Currencies Bond
Aims to capture opportunities in the growing Asian fixed income universe by investing primarily in fixed income securities issued in Asia and denominated in Asian currencies
Our philosophy
- We believe the local currency Asian fixed income markets are developing and inefficient. Through an in-depth analysis of both the technical and fundamental drivers of rates and currencies in this market, we believe we should deliver superior risk-adjusted returns
Our process
- We manage this strategy against the customised Markit iBoxx Pan Asia ex HKD and CNY (100% government)
- We maintain flexibility in this strategy by taking off benchmark positions in corporate bonds, non-benchmark currencies and dollar bonds hedged back into local currencies
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.
Asia Bond
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.
Asian High Income Bond
Aims to invest in fixed income securities which provide higher yield compared to their peers and the potential for capital appreciation over the medium to long term.
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.
Asian High Yield Bond
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.
Indian Fixed Income
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.