HSBC Global Asset Management (HSBC) announced January 7 the launch of HSBC Global Investment Funds – US Income Focused (the Fund) to investors in Hong Kong.

The Fund adopts an income focused strategy for investors who are looking for a potential monthly income stream. At the same time, the Fund helps investors capture the US growth potentials through a multi-asset approach that invests in a diversified portfolio of equities, fixed income and other instruments with a primary focus on the US market.

The diversification across different asset classes and sectors in the US, as well as into other developed markets, opens up broader opportunities and helps reduce the volatility of the portfolio.

The Fund is positioned to tap into the US market – the fastest growing developed economy. The past year was characterized by the US’ macro outperformance with US companies in general having delivered strong earnings growth and dividend income. 

“The US economy demonstrated resilience against the economic slowdown and headwinds in 2019. In 2020, we believe that the policy easing from the Federal Reserve and robust consumer finance are expected to support US growth to stay on its long-term trend. The resilient US economy with relatively strong profit growth makes the US an attractive investment destination,” says Joseph Little, global chief strategist, HSBC Global Asset Management.

As an asset allocator, HSBC aims to enhance return and broaden income of this portfolio by investing in different potential income-generating asset classes, such as US high yield bonds and US equities to reap the benefit from yield potentials. The launch of the Fund is a timely move to cater to investor demand to grow capital and receive a potentially stable income stream by tapping into the US growth opportunities.

“In the current environment, where interest rates are low and market uncertainty persists, it’s crucial for investors to stay invested and as diversified as possible. The Fund provides investors with a diversified portfolio across different asset classes and global economies as they navigate the unpredictable market,” adds Alison Brown, head of Sales, Wholesale Business, Hong Kong and China, HSBC Global Asset Management.

The Fund invests a minimum 70% of assets in US equities, US high yield bonds and US investment grade bonds. Subscription for the Fund started on January 7 for Hong Kong retail investors. The initial public offering will end on January 21 and the Fund will begin trading on the same day. With a base currency in USD, the Fund also offers share classes in HKD, AUD, CAD, EUR, GBP and RMB.