HSBC Global Asset Management has launched its HSBC GIF Global Short Duration High Yield Bond fund.
The Luxembourg-domiciled fund has already raised $20m worth of assets ahead of the launch.
Providing a total return while maintaining a low interest rate risk will form the central focus for the fund.
The fund can invest up to 30 per cent in investment grade securities. BB and B rated bonds issued by both US and European corporates form the fund’s “core universe”, a spokesperson from HSBC says.
There is also the option for the fund to invest up to 10 per cent in asset backed securities.
The duration of bonds in the fund are expected to have a short duration, with a final maturity or expected call dates within three years.
Although the fund’s primary currency exposure is to the US dollar, it may also have up to 10 per cent exposure other currencies with the aim of enhancing returns.