HSBC Global Asset Management has launched two fixed income funds, one tracking sterling index-linked bonds and another UK corporate bonds.
The HSBC Sterling Corporate Bond Index Fund will track the Markit iBoxx GBP Non-Gilts Index, while the HSBC Index-Linked Gilt Index Fund, which was launched earlier this summer, tracks the FTSE Actuaries UK Index-Linked Gilts Index.
Available through most platforms, both funds have estimated ongoing charges figures (OCF) of 0.17 per cent (clean share class).
Andy Clark (pictured), chief executive officer, HSBC Global Asset Management (UK), says: “These two latest additions to HSBC’s suite of index-based funds can be used as an important building block for investment portfolios. The new funds are designed to offer cost-effective access to an area of fixed income where direction of interest rates is not the only driver of performance.
“The funds also showcase two core areas of our expertise: fixed income and index-based investing. The day-to-day management will be conducted by members of the global bond team, which is also responsible for running many of our successful actively-managed portfolios.”
The HSBC Sterling Corporate Bond Index Fund, which was launched this week, aims to replicate the performance of the Markit iBoxx GBP Non-Gilts Index. This fund could be considered by investors who would like to have exposure to the performance of the UK corporate markets without being exposed to equity risk.
HSBC Index-Linked Gilt Index Fund, which was launched earlier this summer, tracks the FTSE Actuaries UK Index-Linked Gilts Index. Index-linked bonds are designed to provide a degree of protection from effects of inflation. These securities go up in value when the rate of inflation increases and are able to offer valuable diversification benefits.
