Asian Fixed Income
HSBC Asset Management provides a suite of Asian Fixed Income investment solutions, including in Asia USD credit, which consists of investment grade, high yield, and high income strategies, as well as Asia local currency bonds, which consists of India bonds, RMB bonds, and SGD bonds.
China Fixed Income
Our All China fixed income strategy aims to provide long term capital growth and income by investing in onshore RMB denominated fixed income securities and offshore RMB and China USD fixed income securities.
Our philosophy
- We believe RMB fixed income markets are developing and inefficient. Through a focused and disciplined investment process, we can identify investment opportunities arising from these inefficiencies to deliver optimal risk-adjusted returns
Our process
- We apply an investment style that includes top-down macro analysis and bottom-up credit research. Chinese bond markets are fast developing but remain under-researched, creating opportunities to add value through proprietary research. This involves intensive credit research and a thorough analysis of the RMB bond market
- Leveraging the local insight from our investment professionals across the Asia-Pacific region, the team seeks multiple, uncorrelated alpha sources, with the aim of providing good risk-adjusted returns
- We have a stable and well-resourced team with investment professionals and credit research analysts based in five offices across Asia
HSBC strengths
- Our investment team is equipped with in-depth local insights and supported by an integrated team of Chinese bond investment professionals based in Shanghai
- Our team benefits from our global credit research platform, which utilises the expertise of 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 Currencies Bond
The strategy 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 Asian local currency fixed income markets are developing and inefficient. Through an in-depth analysis of both the technical and fundamental drivers of rates and currencies, we can identify opportunities arising from these inefficiencies to deliver optimal risk-adjusted returns
Our process
- While the market is dominated by government bonds, 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
- Our process is active, fundamental and value driven. It uses quantitative inputs on a selective basis and combines qualitative top-down analysis of macroeconomic and market dynamics, with structured bottom-up research into individual bond issuers and fixed income securities
- We have a stable and well-resourced team with investment professionals and credit research analysts based in five offices across Asia
HSBC strengths
- We have been managing Asian fixed income through various market cycles for three decades
- Our team benefits from our global credit research platform, which utilises the expertise of seasoned sector specialists across the world
- While investment decisions are taken locally to ensure focus and accountability, our portfolio managers in Asia are able to access the expertise and experience of our investment professionals worldwide in order to gain a truly global perspective
- 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 Asian bonds denominated in US dollars.
Our philosophy
- We believe that the inefficiencies of the Asian fixed income market can be identified by the careful and disciplined analysis of Asian economic and industry cycles, as well as individual issuers and issues
- We believe that by understanding the management style and culture of Asian businesses and institutions, while identifying local supply and demand dynamics, we can manage unique investment risks to take full advantage of the opportunity set
- We believe that by combining these local insights together with a truly global perspective, we can construct portfolios in a risk-controlled framework, which can potentially deliver optimal risk-adjusted returns for our clients
Our process
- Our process is active, fundamental and value driven. It uses quantitative inputs on a selective basis and combines qualitative top-down analysis of macroeconomic and market dynamics, with structured bottom-up research into individual bond issuers and fixed income securities
- Leveraging the local insight from our investment professionals across the Asia-Pacific region, the team seeks multiple, uncorrelated alpha sources, with the aim of providing good risk-adjusted returns
- We have a stable and well-resourced team with investment professionals and credit research analysts based in five offices across Asia
HSBC strengths
- We have been managing Asian fixed income for three decades and manage one of the longest running Asia credit funds in the market
- Our team benefits from our global credit research platform, which utilises the expertise of seasoned sector specialists across the world
- While investment decisions are taken locally to ensure focus and accountability, our portfolio managers in Asia are able to access the expertise and experience of our investment professionals worldwide in order to gain a truly global perspective
- 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
The strategy aims to invest in Asian fixed income securities that provide higher yields compared to their peers and the potential for capital appreciation over the medium to long term. The strategy actively allocates between investment grade and non-investment grade bonds and aims to maintain an average credit rating of investment grade in the portfolio.
Our philosophy
- We believe that the inefficiencies of the Asian fixed income market can be identified by the careful and disciplined analysis of Asian economic and industry cycles, as well as individual issuers and issues
- We believe that by understanding the management style and culture of Asian businesses and institutions, while identifying local supply and demand dynamics, we can manage unique investment risks to take full advantage of the opportunity set
- We believe that by combining these local insights together with a truly global perspective, we can construct portfolios in a risk-controlled framework, which can potentially deliver optimal risk-adjusted returns for our clients
Our process
- Our process is active, fundamental and value driven. It uses quantitative inputs on a selective basis and combines qualitative top-down analysis of macroeconomic and market dynamics, with structured bottom-up research into individual bond issuers and fixed income securities
- Leveraging the local insight from our investment professionals across the Asia-Pacific region, the team seeks multiple, uncorrelated alpha sources, with the aim of providing good risk-adjusted returns
- We have a stable and well-resourced team with investment professionals and credit research analysts based in five offices across Asia
HSBC strengths
- We have been managing Asian fixed income for three decades and manage one of the longest running Asia credit funds in the market
- Our team benefits from our global credit research platform, which utilises the expertise of seasoned sector specialists across the world
- While investment decisions are taken locally to ensure focus and accountability, our portfolio managers in Asia are able to access the expertise and experience of our investment professionals worldwide in order to gain a truly global perspective
- 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
The strategy aims to achieve a higher level of income and capital appreciation through investing primarily in a diversified portfolio of higher yielding Asian fixed income securities that are USD denominated.
Our philosophy
- We believe that the inefficiencies of the Asian fixed income market can be identified by the careful and disciplined analysis of Asian economic and industry cycles, as well as individual issuers and issues
- We believe that by understanding the management style and culture of Asian businesses and institutions, while identifying local supply and demand dynamics, we can manage unique investment risks to take full advantage of the opportunity set
- We believe that by combining these local insights together with a truly global perspective, we can construct portfolios in a risk-controlled framework, which can potentially deliver optimal risk-adjusted returns for our clients
Our process
- Our process is active, fundamental and value driven. It uses quantitative inputs on a selective basis and combines qualitative top-down analysis of macroeconomic and market dynamics, with structured bottom-up research into individual bond issuers and fixed income securities
- Leveraging the local insight from our investment professionals across the Asia-Pacific region, the team seeks multiple, uncorrelated alpha sources, with the aim of providing good risk-adjusted returns
- We have a stable and well-resourced team with investment professionals and credit research analysts based in five offices across Asia
HSBC strengths
- We have been managing Asian fixed income for three decades and manage one of the longest running Asia credit funds in the market
- Our team benefits from our global credit research platform, which utilises the expertise of seasoned sector specialists across the world
- While investment decisions are taken locally to ensure focus and accountability, our portfolio managers in Asia are able to access the expertise and experience of our investment professionals worldwide in order to gain a truly global perspective
- 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 seeks opportunities in both the onshore and offshore Indian bond markets, including investment grade, high yield and non-rated Indian fixed income securities denominated in INR and other currencies hedged back into INR.
Our philosophy
- We believe that by combining the opportunity sets in the Indian fixed income market, we are able to produce optimal risk-adjusted returns over the medium to long term
- We believe that the inefficiencies of the Indian fixed income market can be identified by the careful and disciplined analysis of its local economic and industry cycles, as well as individual issuers and issues
Our process
- Our India Fixed Income investment process is active, fundamental and value driven. It combines qualitative top-down analysis of macroeconomic and market dynamics, with structured bottom-up research into individual bond issuers and fixed income securities. The team seeks to exploit multiple, uncorrelated return sources to produce good risk adjusted returns independent of market cycles
- Portfolio managers in Singapore and Hong Kong have significant experience both in India and Asia fixed income and are supported by HSBC Asset Management’s global fixed income platform. They are also supported by considerable fixed income investment resources domestically in India
HSBC strengths
- We have been managing Asian fixed income through various market cycles for three decades
- Our team benefits from our global credit research platform, which utilises the expertise of seasoned sector specialists across the world
- While investment decisions are taken locally to ensure focus and accountability, our portfolio managers in Asia are able to access the expertise and experience of our investment professionals worldwide in order to gain a truly global perspective
- 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.