Against the current Covid-19 market backdrop, HSBC Global Asset Management has launched two funds offering mainland Chinese investors a pair of Asian fixed-income funds with a range of different risk appetites and investment preferences.

The funds –  the HSBC Asian Bond Fund and HSBC Asian High-Yield Bond Fund – were launched in mainland China under the mutual recognition of funds (MRF) scheme, with distributing share classes of both targeting to pay monthly dividends to generate an income stream.

The HSBC Asian Bond Fund seeks to achieve a reasonably high income while maintaining a prudent policy of capital conservation, primarily through investments in fixed-interest securities, including investment grade bonds, within the Asian region.

The HSBC Asian High-Yield Bond aims to achieve a higher level of income and capital appreciation, primarily through investments in a diversified portfolio of higher-yielding fixed-income securities, including investment grade, non-investment grade, and unrated bonds in the Asian markets.

“We know that some mainland Chinese investors are looking for overseas investment to diversify their portfolio in the currently volatile market,” says Alison Brown, head of sales, wholesale business at HSBC Global Asset Management. “We are delighted to leverage the MRF northbound scheme to provide them with a suite of Asian fixed-income funds, each with different risk profiles.”

“The extraordinary level of stimulus policies deployed by Asian governments in the shape of both fiscal and monetary easing bolsters the stability of the Asian bond market against the current market backdrop,” adds Cecilia Chan, chief investment officer, fixed income, Asia-Pacific, HSBC Global Asset Management and fund manager of HSBC Asian Bond Fund. “The fundamentals of Asian corporates are expected to outperform many global peers, and we expect the default rate to be maintained at a lower level.”

The introduction of these two funds brings the total number of Asian bond funds offered to mainland Chinese investors by HSBC Global Asset Management, under the MRF, to three.