HSBC Enhances Two Fixed Income Funds

HSBC Global Asset Management (HSBC) has introduced enhancements to two of its fixed income mutual funds, aiming to better align them with common US allocation models. The HSBC Strategic Income Fund (HBIAX, HBIIX) and the HSBC High Yield Fund (HBYAX, HBYIX) will increase their focus on US markets with a flexible investment approach while continuing to leverage HSBC’s unique global footprint and resources.

The HSBC Strategic Income Fund targets a more consistent income stream across market environments by opportunistically investing in an expanded fixed income segment range. It is now benchmarked to the Bloomberg Barclays US Aggregate Bond Index. The Fund continues to be managed by Rick Liu.

The HSBC High Yield Fund will continue to seek attractive risk-adjusted returns, focusing on the US market while tactically incorporating global opportunities. It is now benchmarked to the ICE BofA Merrill Lynch U.S. High Yield Constrained Index. The Fund continues to be managed by Mary Bowers.

"We are pleased to reshape these funds for our US clients,” said Damion Hendrickson, Head of Sales. "By continuing to leverage the expertise and insights of our global research network, the funds can take opportunistic positions outside the US and adapt to changing markets.”

Investors should consider the investment objectives, risks, charges and expenses of the fund carefully before investing. The prospectus, which contains this and other information about the fund, should be read carefully before investing.

Note to editors:

HSBC Global Asset Management

HSBC Global Asset Management, the investment management business of the HSBC Group, invests on behalf of HSBC’s worldwide customer base of retail and private clients, intermediaries, corporates and institutions through both segregated accounts and pooled funds. HSBC Global Asset Management connects HSBC’s clients with investment opportunities around the world through an international network of offices in 26 countries and territories, delivering global capabilities with local market insight. As at 31 December 2018, HSBC Global Asset Management managed assets totalling US$455.2 bn on behalf of its clients. For more information see www.global.assetmanagement.hsbc.com

HSBC Global Asset Management is the marketing name for the asset management businesses of HSBC Holdings plc.

HSBC Global Asset Management (USA) Inc. is an investment adviser registered with the US Securities and Exchange Commission. HSBC Global Asset Management (USA) Inc. serves as the investment adviser to the HSBC Funds. Foreside Distribution Services, L.P., member FINRA, is the distributor of the HSBC Funds and is not affiliated with the adviser. HSBC Securities (USA) Inc., member NYSE, FINRA and SIPC, is a sub-distributor of the HSBC Funds. Affiliates of HSBC Global Asset Management (USA) Inc. may receive fees for providing various services to the funds.

HSBC Bank USA, N.A.

HSBC Bank USA, National Association (HSBC Bank USA, N.A.) serves customers through retail banking and wealth management, commercial banking, private banking, and global banking and markets segments. It operates bank branches in: California; Connecticut; Washington, D.C.; Florida; Maryland; New Jersey; New York; Pennsylvania; Virginia; and Washington. HSBC Bank USA, N.A. is the principal subsidiary of HSBC USA Inc., a wholly-owned subsidiary of HSBC North America Holdings Inc. HSBC Bank USA, N.A. is a Member of FDIC. Investment and brokerage services are provided through HSBC Securities (USA) Inc., (Member NYSE/FINRA/SIPC) and insurance products are provided through HSBC Insurance Agency (USA) Inc.

HSBC Holdings plc

HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide across 66 countries and territories in Europe, Asia, North and Latin America, and the Middle East and North Africa. With assets of US$2,558bn at 31 December 2018, HSBC is one of the world’s largest banking and financial services organisations.

Investment risks:

There is no assurance that a fund will achieve its investment objective or will work under all market conditions. The value of investments may go down as well as up and you may not get back the amount originally invested. Funds may be subject to certain additional risks, which should be considered carefully along with their investment objectives and fees. Past performance is no guarantee of future results. Fixed income is subject to credit and interest rate risk. Credit risk refers to the ability of an issuer to make timely payments of interest and principal. Interest rate risk refers to fluctuations in the value of a fixed income security that result from changes in the general level of interest rates. In a declining interest rate environment, a portfolio may generate less income. In a rising interest-rate environment, bond prices fall. Foreign and emerging markets: Investments in foreign markets involve risks such as currency rate fluctuations, potential differences in accounting and taxation policies, as well as possible political, economic, and market risks. These risks are heightened for investments in emerging markets which are also subject to greater illiquidity and volatility than developed foreign markets. Derivatives can be illiquid, may disproportionately increase losses and may have a potentially large negative impact on performance.

Copyright © 2019. HSBC Global Asset Management (USA) Inc.

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