HSBC Asset Management has launched the HSBC Euro Fixed Term Bond 2028 fund.
The strategy, which invests primarily in Euro-denominated investment grade corporate bonds from developed markets, will offer access at launch to yields of between 4-4.3% over a four-year term.
At maturity in 2028, the fund aims to return net invested capital to shareholders.
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The portfolio has a strict focus on issuer selection and diversification across sectors, countries and ratings to avoid downgrades and defaults.
The strategy will also employ a low rotation strategy, investing in bonds with a maximum maturity of four years and rated B+ and above at the time of purchase.
Aline Thiel, portfolio manager at HSBC Asset Management, said: “The new HSBC Euro Fixed Term Bond 2028 fund aims to help investors put their cash to work and lock in current yield levels.
“By offering the fixed-term benefits of a single bond investment, alongside the diversification benefits of a traditional bond fund, it provides exposure to the highest quality developed market corporate bonds while taking advantage of high yields now.”
