HSBC Global Asset Management has launched a US income-focused fund to investors in Hong Kong.
The fund mainly invests in fixed income securities and equity securities, money market and cash instruments and other instruments that are related to the USA.
"The resilient US economy with relatively strong profit growth makes the US an attractive investment destination," said Joseph Little, chief global strategist.
The resilient US economy with relatively strong profit growth makes the US an attractive investment destination"
"Our investment approach also provides a flexibility to diversify into other global markets to capture respective growth opportunities," he added.
HSBC GAM believes that US economy has the fastest growth amongst developed markets, and has stayed resilient against the economic slowdown in the rest of the world due to to robust income growth and consumer spending.It therefore expects high quality earnings as a continuation of low interest rates and accommodative policy by the Federal Reserve should help US growth stay along the path of its long-term trend.
"US companies have strong and stable earnings potential, providing relatively reliable dividend income," it said.
The new fund comes at a time when HSBC is dealing with tougher backlash in Hong Kong after an account closure sparked anger among protestors. The two bronze lion statues standing guard over HSBC main offices in Hong Kong were vandalised with red and black paint, with at least one set ablaze.
The bank became the target of the public's ire after itclosed an account that held funds used by Spark Alliance — a nonprofit organization that financed protest-related causes like legal and medical bills — and after police froze around HK$70 million ($9n) tied to the account.
The bank, which generates the vast majority of its profits in Asia, has attempted to remain neutral during the protests that began last year because of fears Beijing is threatening the independence of the former British colony.