HSBC Global Asset Management has announced the launch of the HSBC GIF Asia High Yield Bond fund to offer investors a "yield advantage and diversification benefit" over developed country debt.
The fund aims to provide long-term total return by investing in high-yielding Asian bonds and will be managed by the HSBC GAM Asian fixed income team.
It will adopt an active, fundamental approach, combining top-down macro assessment and bottom-up credit analysis.
Although its focus is on non-investment grade issues, it can also take positions in investment grade and unrated bonds.
Alfred Mui, director and head of Asian credit and lead manager of the new fund, said: "As negative yielding debt becomes a lot more common, Asian high yield bonds stand out as an asset class offering not only a yield advantage, but a diversification benefit for global investors.
"Their low default rate, sound corporate fundamentals and strong demand are among other factors to consider when looking at this asset class.
"The HSBC GIF Asia High Yield Bond fund offers global investors a diverse, growing array of opportunities, including corporate, sovereign, quasi-sovereign, local currency denominated, convertible and unrated bonds.
"The experience we have accumulated through many market cycles in Asia has deepened our understanding of local asset markets.
"With our strong credit research, we can take full advantage of Asian credit opportunities whilst managing the unique investment risks."