Fund Management
HSBC Launches GIF Global Short Duration High Yield Bond Fund

HSBC Global Asset Management, part of the UK/Hong Kong-listed banking group HSBC, has launched a new GIF Global Short Duration High Yield Bond Fund, which seeks high yield income while minimising interest rate risk.
The Luxembourg-domiciled UCITS fund is managed by Mary Bowers, who is part of HSBC’s New York based fixed income team. She is supported by sleeve managers (US and eurozone), helping to ensure an active top down management combined with the full benefits of local specialised resources and processes, the firm said in a statement.
The portfolio typically holds 70-100 high yield bonds with final maturity or expected call dates within three years, selected from a core universe of US and European corporates, rated an average of BB or BBB.
At least 90 per cent of the bonds are denominated into US dollars or hedged into US dollars, with up to 10 per cent other currency exposure.
“Despite the current low growth environment, US and eurozone high yield corporate fundamentals generally remain healthy and high yield defaults are relatively stable. While the uncertainty over quantitative easing tapering may keep markets volatile, we believe that credit spreads can fall back, especially in BBB and high yield areas of the market. Current volatility could provide an opportunity to reallocate risk by rotating between segments and regions and by increasing exposure selectively,” said Bowers.
Minimum investment in the HSBC GIF Global Short Duration High Yield Bond Fund is $5,000 for the wholesale share class, which carries an on-going charge (including administration) of 1.15 per cent. The institutional share class, available at $1 million, carries on-going charges of 0.45 per cent including the administration fee, the firm said.