News and Insights

HSBC Money Market funds update

4/2020

The HSBC money market funds seek to provide shareholders with stability of principal, liquidity and a competitive yield. In the current low interest rate environment, HSBC Global Asset Management (USA), Inc. is taking steps to support a positive yield to fund shareholders, while continuing to ensure liquidity and a stable $1.00 per share net asset value.

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HSBC US Government Money Market Fund understated by 3 basis points

2/2020

On February 3, due to an accounting error, the one-day yields for the HSBC US Government Money Market Fund were understated by 3 basis points.  The Fund will be issuing a corrected dividend rate and processing a correction to the February 3 dividend to address this situation.  We apologize for any confusion this may have caused.

Mid-Year Liquidity Investment Outlook

6/2020

Mid-Year Liquidity Investment Outlook The trend accelerator

The first half of 2020 saw a global liquidity event in money markets. There was a sharp widening of the spread between three-month Libor and the overnight swap rate, a metric many investors monitor. While spreads have since narrowed, stresses remain. The differing actions taken by major central banks have had an impact on how money markets have behaved.

Our response has been to build short-term liquidity in our funds by increasing the amount of assets maturing overnight and within one week. The crisis has also shown our concentration policies to be effective tools in managing liquity risk. A five per cent maximum rule for individual clients proved its worth, while we learned from previous crises which clients are more prone to redeem.

Credit risk and the preservation of capital is just as important to money market investors. Therefore, another focus is minimising the risk of credit rating migration below the minimum rating level required, which could force us to become sellers. We cannot ignore market risk either, given the spectre of ultra-low (and in more cases, negative) interest rates for the foreseeable future.

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Investment Outlook 2020: The Age of Uncertainty

12/2019

Returns overall have been impressive, especially considering the political and economic uncertainty that characterized 2019. This year saw a synchronized slowdown in growth across the globe, and significant political events across the major economies. As an example, this year saw more elections held across the G20 countries than any year since 1958. These factors led to what we›ve called "the age of uncertainty".

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Allocating to Asia - August 2020

8/2020

In this brochure, we explore some key considerations for including Asia in a global portfolio in the post-COVID world.  Our discussion is organized under four different investment themes — recovery, trend acceleration, valuation and structural drivers. 

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