Capital Group and HSBC will extend a long-standing relationship through the distribution of the Capital Group Global Corporate Bond Fund (LUX) (GCB) to HSBC’s clients globally.
HSBC will work with Capital Group to launch the fund globally across its Global Private Banking, Wealth Management, and Retail client segments, in several markets globally.
The GCB fund aligns with the HSBC Global Private Banking and Wealth CIO’s high conviction theme Opportunities in Quality Credit, which focuses on global investment grade corporate credit. GCB’s global approach provides diversification across markets and greater liquidity, while its focus on high quality may offer a degree of long-term stability. The fund could form a core allocation in clients’ investment portfolios, where appropriate for that client, with high-quality credit potentially playing a stabilising effect due to its low correlation to equities, should volatility remain elevated.
Launched in 2018, over the past five years the Luxembourg-domiciled UCITS fund outperformed the reference index and peer group3. The portfolio, driven by fundamental research, is managed by a lead portfolio manager and a global team of 16 sector analysts investing in their highest convictions.
Mike Gitlin, Global Head of Fixed Income, Capital Group, said: “We are delighted to deepen our partnership with HSBC as Capital Group celebrates 50 years of fixed income investing. We’re proud to be one of the largest, active fixed income managers globally with around US$470 billion in assets2.
“While markets have been challenged over the last few years, the return of income to fixed income means that investors can benefit from putting cash to work in high quality bonds with attractive yield for potential future income. Harnessing Capital Group’s strong fixed income capabilities and the Global Corporate Bond fund’s track record with HSBC’s global distribution network, we look forward to supporting more clients around the world to build a balanced portfolio.”
Annabel Spring, Chief Executive of HSBC Global Private Banking & Wealth, said: “We are pleased to be working with Capital Group to offer our clients access to its Global Corporate Bond Fund (LUX). This fund firmly aligns with our CIO view to focus on quality bonds, where current yields are at a decade high and we are nearing the end of the Fed’s tightening cycle. Historically, investing at current levels has provided investors with attractive total returns from income and capital growth.
“This arrangement further enriches our strong mutual funds offering and underscores our approach of offering a wide range of leading investment solutions to help clients unlock opportunities globally.”