HSBC launches Singapore-dollar income bond fund for local retail investors
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The fund will primarily invest at least 50 per cent in SGD denominated bonds issued by governments, government agencies, supranational bodies or companies that are Singapore and non-Singapore based issuers. All other investments will be hedged to SGD. The fund also invests across various countries and sectors which tend to behave differently at different market cycles enabling diversification.
Puneet Chaddha, CEO, Southeast Asia, HSBC Global Asset Management, said: “We launched the fund because our retail customers want to grow their capital faster than the average savings rate but in a way that’s risk weighted and diversified. This fund gives them access to growth with limited downside exposure.”
“Being located in the heart of Asia, Singaporeans understand the underlying economic growth of the region. Moreover, the diverse nature of the fund’s investment allocation across a multitude of Asian countries and sectors will provide confidence in the growth potential but with the added assurance of minimizing currency risk.”
Questions & Answers
Q.What proportion of the fund's investments will be in Singapore dollar denominated bonds?
What proportion of the fund's investments will be in Singapore dollar denominated bonds?
The fund will invest at least 50 per cent in Singapore dollar denominated bonds. These bonds will be issued by governments, government agencies, supranational bodies, or companies based in Singapore and elsewhere.
Q.Which types of organisations or entities will the fund invest in?
Which types of organisations or entities will the fund invest in?
The fund will invest in bonds issued by governments, government agencies, supranational bodies, or companies. These issuers can be based in Singapore or in other countries.
Q.How does this fund aim to manage risk for investors?
How does this fund aim to manage risk for investors?
The fund aims for risk-weighted and diversified growth. It offers access to growth with limited downside exposure by hedging all non-Singapore dollar investments to SGD and investing across various countries and sectors.
Q.What is the primary objective of this new bond fund?
What is the primary objective of this new bond fund?
The primary objective is to help retail customers grow their capital faster than average savings rates. It aims to achieve this in a way that is risk-weighted and diversified, offering access to growth with limited downside exposure.
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