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June 2024
AAM Magazine
June 2024
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AAM new product roundup

HSBC Global AM launches first dedicated Singapore-dollar bond fund for retail investors

HSBC Global Asset Management (HSBC Global AM) has launched the HSBC Global Investment Funds - Singapore Dollar Income Bond, its first dedicated Singapore-dollar income bond fund for retail investors in the city state.

It’s an Asian focused fixed income fund that invests in different sectors and countries in the region, the company says in a March 8 statement.

At least 50% of the fund will be invested in Singapore dollar-denominated bonds issued by governments, government agencies and companies, while "all other investments will be hedged to the Singapore dollar", according to the company.

Puneet Chaddha, chief executive officer of HSBC Global AM's Southeast Asia operations, says the company launched the fund because its "retail customers want to grow their capital faster than the average savings rate".

"This fund gives them access to growth with limited downside exposure," he adds.

SGX and Smartkarma unveil cloud-based platform

Singapore Exchange (SGX) and fintech firm Smartkarma rolled out the C-Suite Pilot Program, a cloud-based platform, on March 12.

The platform will enable SGX-listed companies to streamline their communication and data reporting to the institutional, analyst and investor communities, SGX says in a March 12 statement.

Listed companies will be able to communicate seamlessly with analysts and investors, monitor sentiment, compare industry performance, and benchmark instantly against peers, which will enhance investors’ understanding of, and accessibility to, these companies, according to SGX.

Schroders introduces global credit income fund in Hong Kong

Schroders announced the launch of Schroder ISF Global Credit Income Fund in Hong Kong on March 12.

The fund aims to achieve capital growth and deliver a consistent and attractive level of income by investing globally in investment grade, high yield, developed and emerging markets sovereign and municipal bonds, and asset-backed securities. The fund intends to make a fixed monthly payout of 4.5% per annum. It also places emphasis on managing risks to investors’ capital. 

Chris Durack, chief executive officer of Hong Kong and head of institutional business, Asia Pacific, says: “Achieving an acceptable and reliable source of income is important to many investors, particularly in an environment where interest rates remain low and market volatility may become more frequent and intense.”

“At Schroders, we believe by investing across the global credit universe, we can build a portfolio to provide a relatively attractive level of income with a sensible balance of risk. We recognise that investors seeking income can be more sensitive to capital loss, and as such we are committed to capturing the best opportunities while managing the risks for them,” he adds.

According to Schroders, it takes an innovative theme-based investment approach that allows the fund to identify idiosyncratic opportunities and risks from secular trends, such as macroeconomics, demographics, technology and consumer demand.

CCB and CYPA jointly launch property buyout fund

China Construction Bank (CCB) and China Young Professionals Apartments Ltd. (CYPA) jointly launched a property buyout fund on March 13.

The fund is structured as a China apartment real estate investment trust (REIT), and serves as an investment channel for global institutional investors who are interested in the growing China REITs market.

It aims to initially raise 2 billion RMB (US$316 million) from the market.

The fund will focus on acquiring stock assets and developer-long-term-owned properties in first and second-tier core cities.

ADB sells $3.25 billion 5-year global benchmark bonds

The Asian Development Bank (ADB) announced on March 14 it has returned to the US dollar bond market with the pricing of a US$3.25 billion 5-year global benchmark bond, proceeds of which will be part of ADB’s ordinary capital resources.

The bond, with a coupon rate of 2.75% per annum payable semi-annually and a maturity date of March 17, 2023, was priced at 2.87% to yield 25 basis points over the 2.62% US Treasury notes due February 28, 2023.

The transaction was lead-managed by Bank of America Merrill Lynch, HSBC, Morgan Stanley, and RBC Capital Markets. A syndicate group was also formed consisting of Credit Agricole, Daiwa, DBS Bank, SMBC Nikko, and Wells Fargo.

The bond offering achieved wide primary market distribution with 39% placed in Europe, the Middle East, and Africa, 34% in Asia, and 27% in the Americas. By investor type, 55% of the bonds went to central banks and official institutions, 27% to banks, and 18% to fund managers and other types of investors.