This article was originally published by our sister title, Portfolio Adviser
HSBC Asset Management has launched the HSBC Euro Fixed Term Bond 2028 fund.
The strategy, which invests primarily in Euro-denominated investment grade corporate bonds from developed markets, will offer access at launch to yields of between 4-4.3% over a four-year term.
At maturity in 2028, the fund aims to return net invested capital to shareholders.
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The portfolio has a strict focus on issuer selection and diversification across sectors, countries and ratings to avoid downgrades and defaults.
The strategy will also employ a low rotation strategy, investing in bonds with a maximum maturity of four years and rated B+ and above at the time of purchase.
Aline Thiel, portfolio manager at HSBC Asset Management, said: “The new HSBC Euro Fixed Term Bond 2028 fund aims to help investors put their cash to work and lock in current yield levels.
“By offering the fixed-term benefits of a single bond investment, alongside the diversification benefits of a traditional bond fund, it provides exposure to the highest quality developed market corporate bonds while taking advantage of high yields now.”
