The new HSBC GIF Global Multi-Asset Income fund is an addition to the firm’s Luxembourg-domiciled HSBC Global Investment Funds range.
It will be managed by the same team that manages HSBC’s World Selection Income Portfolio, a fund that has built a strong track record since its launch in 2010.
Jane Davies, lead fund manager for both of funds said: “Demographic trends, continued low interest rates in developed regions and volatile markets have increased the demand for income-oriented multi-asset investment products.”
Initially the fund will target mainly European and Middle-Eastern investors, and will be registered in Germany, Italy, Spain, France, Switzerland, Scandinavia, UAE, Malta and Jersey. HSBC said other countries may follow at a later stage.
Investments will be spread across a broad range of income-generating asset classes, such as emerging markets debt, global high yield bonds, infrastructure and global listed real estate securities. At launch, these are expected to generate a gross yield of around 4%, the company said.
Simon Ellis, head of client segments at HSBC Global Asset Management, said the new fund would target individuals and pension funds looking for a product that combines risk mitigation with an above-average yield.
It was designed to appeal particularly to those investors already in or approaching retirement looking for income to help support their needs, he said.
“The HSBC GIF Global Multi-Asset Income fund meets this need with a simple and transparent solution to the challenge of delivering the right outcomes in today’s investment environment of lower returns and high volatility,” Ellis said.
