HSBC bond trackers look beyond interest rates

HSBC bond trackers look beyond interest rates

HSBC Global Asset Management (Gam) has launched two tracker funds providing access to sterling index-linked bonds and 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 follows the FTSE Actuaries UK Index-Linked Gilts index.

The funds, managed by the asset manager's global bond team, seek to give investors low-cost access to an area of fixed income where performance is not solely reliant on the direction of interest rates.

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Each will be available through platforms and has an estimated ongoing charges figure of 0.17 per cent.

HSBC Gam’s UK chief executive officer Andy Clark said: “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."