HSBC AM has launched its TWCS strategy in collaboration with HSBC’s GTS business to provide investors with access to new opportunities in global trade finance.
Following this announcement, the strategy is expected to invest in a diversified portfolio of short-term trade finance and working capital assets, including receivables finance, payables finance, trade loans, as well as documentary trade, and other instruments.
In addition, with a global mandate, the strategy is set to participate in facilities that provide funding to corporates and financial institutions involved in domestic and international trade. The institution is expected to focus on meeting the needs, preferences, and demands of clients and users in an ever-evolving market, while prioritising the process of remaining compliant with the regulatory requirements and laws of the industry as well.
More information on HSBC Asset Management’s launch of the TWCS strategy
According to the official press release, the strategy was built on an open-ended structure, and it aims to deliver attractive yields through the use of a low-risk, diversified portfolio of real economy transactions. These transactions will benefit from low correlation to other credit asset classes and low sensitivity to market timing, allowing for potentially more stable and secure returns. At the same time, the strategy is expected to be managed by HSBC AM’s Capital Solutions team in order to offer clients access to bank-originated asset deal flow.
The launch of the TWCS strategy comes amid an evolving global trade landscape that is prompting corporates to further develop their supply chains, driving demand for robust trade and working capital solutions. With this in mind, through a collaboration with HSBC’s GTS business, the strategy is expected to have access to HSBC’s new deal flow and existing assets, while also benefiting from its position as a secure trade finance bank.
With access to the deal flow of the trade finance bank, HSBC Asset Management is expected to deliver a diversified private credit solution that incorporates high credit quality with low correlation to markets. Furthermore, this strategy marks an important step in the process of expanding its alternative credit platform and broadening the range of differentiated solutions it offers to clients. The initiative is aimed at institutional investors across the UK and Europe, Asia, Canada, Australia, and the Middle East.
