HSBC Global Asset Management has announced the offering of the HSBC collective investment trust, HSBC Asia High Income Bond Fund in Hong Kong.

The fund aims to pay monthly dividends to generate an income stream. It aims to invest in fixed income securities which provide higher yield compared to their peers and the potential for capital appreciation over the medium to long term. A minimum of 70% of the fund’s net asset value will be invested in a diversified portfolio of fixed income securities issued in Asia. The fund will be invested to a maximum of 45% in Asia high yield bonds within the portfolio.

The fund’s portfolio will comprise a mix of exposure to high growth Asian countries, such as India, Indonesia, and China, as well as developed markets such as Singapore and Korea.

Alfred Mui, manager of the fund at HSBC Global Asset Management, says, “Generating returns nowadays is getting harder and harder due to the uncertainty and complexity of the investment environment. The income strategy that many investors pursued and benefited from in 2016 will likely continue to play out this year, on the back of the current political environment, rising aging population, ample liquidity in the market and benign interest rate trends despite potential rate hikes.”