HSBC Asset Management (HSBC AM), the investment management business of the HSBC Group, has today launched its Trade and Working Capital Solutions strategy.
This comes in collaboration with HSBC’s newly formed Global Trade Solutions (GTS) business, and the mandate is strictly global. It will involve investing in a portfolio of short-term trade finance and working capital assets, including receivables finance, payables finance, and trade loans.
Vivek Ramachandran, Head of GTS at HSBC, highlighted the growing importance of trade assets as an appealing asset class for institutional investors. “This new strategy brings together our global reach, origination strength and innovation to deliver robust trade finance solutions to clients and economies worldwide,” he said.
The aim is to deliver stable yields through a low-risk, diversified portfolio, made possible since these transactions benefit from low correlation to other credit asset classes. Additionally, the strategy is less sensitive to market timing.
The new strategy reflects increasing client demands for more resilient supply chains, which stable trade and working capital solutions could provide.
Borja Azpilicueta, Head of Capital Solutions at HSBC Asset Management, highlighted how the TWCS expansion comes “at a time when shifting global trade dynamics are driving increased demand for trade finance, creating potentially compelling new investment opportunities.”
At present, the strategy is aimed at institutional investors across Europe, Asia, Canada, Australia and the Middle East.
