HSBC Asset Management has launched a sterling-denominated short-duration optimal income bond fund, available in OEIC format, focused on capital preservation and liquidity while aiming to help investors meet their income objectives.
The fund follows a multi-sector short-duration credit approach, which aims to broaden the opportunity set beyond any single market segment, dynamically allocating across investment-grade corporates, securitised credit, emerging markets and selective high-yield to access differentiated sources of return, with a target duration of approximately 1-3 years.
Actively-managed and supported by HSBC AM’s global research, it is positioned as a step beyond cash and and money market funds for investors seeking an additional yield pick-up while maintaining a short-duration profile and liquidity.
The fund will be registered and available to wholesale and institutional investors based in the UK, and marks HSBC AM’s first active fixed income fund launch on its OEIC platform since 2017.
It expands HSBC AM’s short and intermediate duration fixed income range in the UK and builds on HSBC AM’s liquidity and credit-oriented strategies, offering investors an additional option to capture additional yield in the current market environment. It also complements existing flagship Luxembourg-domiciled capabilities—Ultra-Short Duration, Global Short Duration, Strategic Duration & Income, and Investment Grade Securitised Credit—and supports clients’ evolving fixed income needs.
Mohamed Siddeeq, portfolio manager at HSBC Asset Management, said: “In a market where cash rates are no longer the full story, we see a clear opportunity in short-duration, multi-sector credit which we believe is a space that can help investors seek more income while keeping interest-rate sensitivity tightly managed.
“For investors looking to enhance money market or cash returns without taking unnecessary duration risk, this Fund could offer a practical next step. With access to a global opportunity set, it aims to deliver a competitive yield and attractive risk-adjusted returns through a diversified, multi-sector short-duration approach, supported by our longstanding fixed income expertise and focus on capital preservation and liquidity aware portfolio construction.”
HSBC AM currently manages over US$200 billion in fixed income assets globally.