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FINANCIAL SERVICES | Staff Reporter, Singapore

HSBC launched SGD income bond for Singapore retail investors

It launched an SGD-denominated fund that will invest in Asian governments and firms.

HSBC Global Asset Management launched the HSBC Global Investment Funds (GIF) Singapore Dollar Income Bond exclusively for Singapore retail investors. According to a press release, it is an Asian focused fixed income fund entirely denominated in Singapore Dollars (SGD) that invests in sectors and countries across the region.

HSBC said the fund will primarily invest at least 50% in SGD denominated bonds issued by governments, government agencies, supranational bodies or companies that are Singapore and non-Singapore based issuers. “All other investments will be hedged to SGD. The fund also invests across various countries and sectors which tend to behave differently at different market cycles enabling diversification.”

Puneet Chaddha, CEO, Southeast Asia, HSBC Global Asset Management, said, “We launched the fund because our retail customers want to grow their capital faster than the average savings rate but in a way that’s risk-weighted and diversified. This fund gives them access to growth with limited downside exposure.”

Chaddha noted that the diverse nature of the fund’s investment allocation across a multitude of Asian countries and sectors will provide confidence in the growth potential but with the added assurance of minimising currency risk. “We know from our recent HSBC Future of Retirement report that 37% of Singapore investors still believe cash savings will provide the best return for retirement. This shows there are pockets of the retail investment landscape that could further optimise their wealth portfolio through greater awareness of alternative options to cash.”

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