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HSBC plans to launch high-yield, high-income bond funds
By Toni Weeks
San Luis Obispo, Calif., Dec. 24 – HSBC Funds is planning to offer two new bond funds, the HSBC Global High Yield Bond Fund and the HSBC Global High Income Bond Fund, according to an N-1A filing with the Securities and Exchange Commission.
The high-yield fund will seek to maximize total return, which is comprised of capital appreciation and income. Under normal conditions, it will invest at least 80% of its net assets in a globally diversified portfolio of high-yield securities. The fund invests in at least three countries, including the United States, and may invest in the securities of issuers in emerging market countries.
The high-income fund, on the other hand, will seek to provide a high level of current income. Under normal market conditions, it will invest at least 80% in a globally diversified portfolio of higher-yielding securities, which are those rated in the lowest investment-grade category or lower by one or more nationally recognized statistical rating organizations.
Both funds primarily invest in dollar-denominated fixed-income securities or fixed-income securities denominated in a foreign currency that are hedged into U.S. dollars.
Xavier Baraton, Mary Bowers, Philippe Igigabel, Lisa Chua, Andrew Jackson and Marcus Pakenham will comprise the portfolio management team for the high-yield fund, whereas that of the high-income fund includes Baraton, Jerry Samet, Jean-Olivier Neyrat, Chua, Jackson and Pakenham.
Both funds will offer class A and class I shares. The ticker symbols have not been set.
For either fund, class A shares will be subject to a maximum sales load of 4.75%. Including a management fee of 0.65%, total annual fund operating expenses are expected to be 1.15% for class A and 0.8% for class I shares.
New York-based HSBC Global Asset Management (USA) Inc. will serve as the investment adviser.
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