HSBC bond funds

• The coupon rates of floating rate securitised credit are tied to a short-term market interest rate which tends to move along with Fed funds rate. Nearly 90% of the Fund’s assets are floating-rate securitised credit¹, which may benefit the Fund during rising-rate environment, providing a higher potential income
• The Fund invests in investment grade securitised credit with average credit rating at AA- (as of end June 2022) which helps mitigating credit risk. Duration of the Fund is 0.3 year, this short duration nature offers less sensitivity to interest rate movements, thus helping to reduce the Fund’s price fluctuation¹
• The Fund offers distribution share classes which aim to provide monthly dividend. The latest annualised dividend yield of Class AM2 (as of June 2022) is 2.92% (dividend is not guaranteed and may be paid out of capital)²

Download fund brochure Click to know more about the characteristics of securitised credit

1. Source: HSBC Asset Management, data as of 30 June 2022.
2. Source: HSBC Asset Management, data as of 30 June 2022. Dividend is not guaranteed and may be paid out of capital, which will result in capital erosion and reduction in net asset value. A positive distribution yield does not imply a positive return. Past distribution yields and payments do not represent future distribution yields and payments. Historical payments may be comprised of both distributed income and capital. The calculation method of annualised yield: ((1+ (dividend amount/ ex-dividend NAV))^12) – 1. The annualized dividend yield is calculated base on the dividend distribution on the relevant date with dividend reinvested, and may be higher or lower than the actual annual dividend yield.

• Securitised credit comprise Asset Backed Securities (ABS), Commercial Mortgage Backed Securities (CMBS), Collateralised Loan Obligations (CLO) and Residential Mortgage Backed Securities (RMBS), etc. These less accessible assets may offer attractive investment potential
• Securitised credit exhibit a low correlation to traditional fixed income asset, providing diversification benefits to investment portfolios. In addition, they usually offer higher yields relative to corporate bonds with similar credit ratings

• Yields in the short duration credit space have returned to attractive levels that have not been seen in recent years, offering investors a chance to grasp a potentially higher income
• The Fund offers distribution share classes which aim to provide monthly dividend. The latest annualised dividend yield of Class AM2 and AM3HRMB (as of June 2022) is 4.41% and 5.55% respectively (dividend is not guaranteed and may be paid out of capital)¹

1. Source: HSBC Asset Management, as of 30 June 2022. Dividend is not guaranteed and may be paid out of capital, which will result in capital erosion and reduction in net asset value. A positive distribution yield does not imply a positive return. Past distribution yields and payments do not represent future distribution yields and payments. Historical payments may be comprised of both distributed income and capital. The calculation method of annualised yield: ((1+ (dividend amount/ ex-dividend NAV))^12) – 1. The annualized dividend yield is calculated base on the dividend distribution on the relevant date with dividend reinvested, and may be higher or lower than the actual annual dividend yield.

• The Fund mainly invests in short-term bonds (effective duration: 1.75 years)², which are more resistant to interest rate fluctuations than longer-term bonds, and are better positioned in a rising-rate environment
• The Fund has an average credit rating of A-/BBB+². The high quality assets in the portfolio with global diversification could help reduce drawdowns

2. Source: HSBC Asset Management, as of 30 June 2022.