The HSBC GIF Global Short Duration High Yield Bond Fund is domiciled in Luxembourg and has raised $20m pre-launch.
It will be headed up by Xavier Baraton, the group’s CIO of fixed income, who will invest primarily in bonds with terms of three years or less.
Up to 30% of assets can be invested in investment grade securities, while BB and B rated bonds issued by US and European corporates form the fund’s core universe.
It can also include investments in Asia, and EMD and a maximum 20% commitment to mortgage and asset-backed securities.
In terms of currency, primary exposure will be to the US dollar, although other currencies can make up a maximum 10% in order to enhance returns.
The asset manager is the second to have launched a short duration bond fund in the past fortnight.
