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HSBC Global Investment Funds – Strategic Duration and Income Bond
The Fund mainly invests in a portfolio of fixed income securities with average duration of around 3-8 years.
Fixed payout classes pay out a pre-determined annualized fixed percentage of their net asset value (NAV) or adjusted NAV at a pre-determined frequency. The pre-determined annualized fixed percentage does not reflect either the actual or expected income or performance of the Fund. Consequently, fixed payout classes are expected to payout capital gains and/or of capital and may do so over a prolonged or indefinite period. Paying-out of capital represents a withdrawal of investor’s initial investment and may result in an immediate reduction of the NAV per unit and a substantial erosion of an investor’s initial investment over the long term. Over the very long term an investor’s initial investment may be nearly or even completely exhausted. A positive payout does not imply a positive return.
The Fund may invest in financial derivative instruments for investment purpose which may lead to higher volatility to its net asset value.
The Fund’s investments may involve investment, volatility, liquidity, debt securities, non-investment grade and unrated debt securities, sovereign debt, currency, tax and political risks. Investors may suffer substantial loss of their investments in the Fund.
Portfolio Currency Hedged Share Classes or RMB denominated class are subject to higher currency and exchange rate risks.
Investors should not invest solely based on this page and should read the offering documents for further fund details including risk factors.
Why invest in bonds amid falling interest rates?
Are you wondering how to position your investments during rate cuts? Lower interest rates usually drive bond yields down and bond prices up, creating an opportune time to invest in bonds. However, in an uncertain world, staying dynamic and flexible is key to navigating changes. Read on to discover more.
What we know
Major central banks have started rate cutting cycles
Bond prices and interest rates move in opposite directions
Risky assets tend to perform well in rate cutting cycles
What we do not know
The timing, pace and destination of the rate cut
Macro economic data might change central banks forecasts
Geopolitical risks can affect market appetite in durations
Source: HSBC Asset Management, November 2024. For illustrative purpose only.
Strategic duration: Unlocking income opportunities in the current market environment
Watch this video to find out how to align your investments with the current interest rate cycle.
Source: HSBC Asset Management, November 2024. For illustrative purpose only.
* A positive payout does not imply a positive return. The payout rate is not guaranteed. Under normal circumstances, the payout rate is pre-determined and is not subject to the Manager’s ongoing discretion. Should the Manager decide to adjust the payout rate, affected investors will receive at least one month’s prior written notification.
Glide through market shifts with a dynamic bond strategy
Although major central banks have started cutting rates, timing these cuts has been difficult, as shown by drastic changes in rate cut expectations over recent months
The Fund adopts a dynamic duration approach, aligning investments with economic changes
With strategic duration management and a focus on intermediate-term bonds (3 to 8 years), the Fund may capture opportunities amid rate cuts with reduced interest rate sensitivity
2024 rate cut expectations vs YTD total returns across durations1
1. Source: Bloomberg, Federal Reserve, HSBC Asset Management, data from 31 December 2023 to 30 September 2024. US Agg 3-5Y: Bloomberg US Agg 3-5 Year Total Return Value Unhedged USD; US Agg 5-7Y: Bloomberg US Agg 5-7 Year Total Return Value Unhedged USD; US Agg 7-10Y: Bloomberg US Agg 7-10 Year Total Return Value Unhedged USD; US Agg 10Y+: Bloomberg US Agg 10+ Year Total Return Value Unhedged USD. Total returns are calculated with cumulative returns of monthly data.
No single asset class consistently outperforms. A dynamic, flexible asset allocation can seize opportunities across markets and sectors and through all economic cycles
Without benchmark constraints, the Fund invests in a diverse range of assets including securitised credit, global high-yield and investment-grade bonds, etc, to effectively navigate various market conditions
Dynamic asset allocation to navigate market conditions
The diagram is for illustrative purposes only. This represents a high level summary of asset classes the Fund may invest in, and may not be the same as the actual portfolio. The actual universe and allocation may differ and are subject to change without prior notice.
The Fund aims to offer a fixed monthly payout of 7%2 (annualised payout rate of NAV, payout may be paid out of capital refer to risk disclosure 2)
It provides a choice of 10 currency share classes to cater various investor needs
2 A positive payout does not imply a positive return. The payout rate is not guaranteed. Under normal circumstances, the payout rate is pre-determined and is not subject to the Manager’s ongoing discretion. Should the Manager decide to adjust the payout rate, affected investors will receive at least one month’s prior written notification. The payout amount may vary from month to month based on the portfolio’s performance. The amount for each payout is determined by multiplying 7% with the net asset value on the relevant dealing day, and then dividing it by 12.
Investment involves risks. Past performance is not indicative of future performance. Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. HSBC Asset Management accepts no liability for any failure to meet such forecasts, projections or targets. For illustrative purposes only. The views expressed above were held at the time of preparation and are subject to change without notice.
The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested. Past performance is not a reliable indicator of future performance. Any views and opinions expressed are subject to change without notice. Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. We accept no liability for any failure to meet such forecast, projection or target. This page is prepared for general information purposes only and does not have any regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive it. Any views and opinions expressed are subject to change without notice. This document does not constitute an offering document and should not be construed as a recommendation, an offer to sell or the solicitation of an offer to purchase or subscribe to any investment.
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Terms and conditions
This Site is intended for financial intermediaries in Hong Kong only.
The information herein is not intended for individuals and such individuals should not rely upon it.
Important information
The Funds invest in various investments, such as equities, bonds, money market instruments, collective investment schemes and alternative investments. Each fund has a different investment objective and risk profile.
The Funds may subject to the risks of investing in emerging markets and smaller companies; and may subject to the concentration risks when the investments are concentrated in one or a small number of markets or sectors.
The Funds may invest in non-investment grade bonds, unrated bonds, contingent convertible securities, mortgage backed securities, asset backed securities and urban investment bonds issued by PRC local government financing vehicles (LGFVs) which are subject to additional risks and volatility.
The Funds may have substantial investments in securities issued by a single sovereign issuer (including but not limited to issuer with a non-investment grade credit rating) and are subject to higher concentration risk, sovereign risk and credit risk.
The Funds may gain exposure to hedge fund, absolute return strategy, private equity, real estate sector and Real Estate Investment Trust (REIT) which are subject to additional risks and volatility.
The Funds may invest in onshore Chinese securities through various market access schemes and China A-shares Access Products. Such investments involve additional risks, including the risks associated with China's tax rules and practices.
When investing in Indian bonds, the Funds may need to comply with the licensing regulations in India and may subject to additional risks, including quota restrictions and tax risks.
The Funds may invest in other funds and need to bear the underlying funds' fees and expenses on top of the Funds' own fees and expenses.
The Funds may invest in financial derivative instruments for investment purpose which may lead to higher volatility to their net asset value.
The Funds may pay dividends out of capital or gross of expenses. Dividend is not guaranteed and may result in capital erosion and reduction in net asset value.
Because the Funds' base currency, investments and classes may be denominated in different currencies, investors may be affected adversely by exchange controls and exchange rate fluctuations. There is no guarantee that the currency hedging strategy applied to the relevant classes will achieve its desired result.
Investing in money market funds are not the same as placing funds on deposit with a bank or deposit taking company. The Funds which are money market funds have no obligation to redeem units at their offering value and such Funds are not subject to the supervision of the Hong Kong Monetary Authority. Investors may not recoup the original amount invested in the Funds.
The Funds' investments may involve substantial credit, currency, volatility, liquidity, interest rate, tax and political risks. Investors may suffer substantial loss of their investments in the Funds.
The Funds are NOT equivalent to time deposits. Investors should not invest in the Funds solely based on the information provided herein and should read the offering document of the Fund for details.
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Although major central banks have started cutting rates, timing these cuts has been difficult, as shown by drastic changes in rate cut expectations over recent months
