HSBC Germany has announced the launch of a new Asia Bond Fund and an Indonesia Bond Fund aimed at offering investors in Germany access to Asian corporate bonds.
The funds will be managed by HSBC’s 30 person strong team of investment specialists covering Asia. “In a world of low yields, investors are increasingly looking beyond established markets in order to source additional return” comments Rudolf Apenbrink, head of Asset Management at HSBC Germany.
The HSBC GIF Asia Bond fund will invest predominantly in US dollar denominated corporate bonds of eight Asian markets, a third of its portfolio will be invested in Chinese corporate bonds. Upon maturity, the bonds are expected to deliver a return of 3.8 percent.
The HSBC GIF Indonesia Bond fund will invest predominantly in Indonesian government bonds as well as bonds of government institutions, the asset allocation also includes Rupiah denominated bonds and Indonesian offshore bonds. As of July 2016, returns before tax were at 7.1%.