HSBC Global Asset Management has launched a fixed-term global bond fund for Citywire + rated Jerry Samet.
The HSBC GIF Global Corporate Fixed Term Bond 2020 is Ucits - compliant fund and has been launched as part of an IPO period which runs from 10-28 October.
After this period it will remain open to subscriptions for a short period subject to market conditions.
The fund will mostly invest in US dollar-denominated corporate bonds or government securities with which mature on or before 30 June 2020.
The bonds are held to maturity and the portfolio is designed to have a low turnover. Over the 3.7 year period, the fund will aim for a yield between 3.0-3.5%.
Around 55% of the fund is allocated to investment grade bonds and 45% to high quality high yield. The fund invests in around 100 issuers across countries and sectors.
Much of this is focused in North America with around 30% of the fund allocated to Europe and the Middle East. Emerging markets accounts for around 25% of the fund.
Commenting on the launch, Xavier Baraton, who is CIO for fixed income at HSBC, said: 'Slow global growth along with low and negative interest rates in developed markets have caused many investors to search for higher yields.'
'The fund has been launched in direct response to client needs, by providing a stable source of returns based on a low turnover fixed income strategy.'
'The fund should appeal to a number of clients, including those seeking regular income, those with large cash balances to invest and clients looking specifically for managed fixed income portfolios.'
The fund is domiciled in Luxembourg and available for sale in Switzerland, France, Germany, Luxembourg, Monaco, Greece, Singapore, the US and Hong Kong.