HSBC Asset Management Americas Inc. said it plans to issue two new mutual funds that include asset-backed securities as one of their investment options. The new funds are the HSBC Variable Growth and Income Fund and the HSBC Variable Fixed Income Fund.
The growth and income fund's objective is "long-term growth of capital and current income by investing in common and preferred stocks and convertible securities." It may invest the balance of its assets in a variety of fixed income securities, specifically including asset-backed and mortgage-backed debt.
The fixed income fund will aim for high current income consistent with the appreciation of capital. It will normally invest in fixed income securities and expects to maintain an average quality rating of double-A. Along with U.S. Government securities and corporate bonds, asset-backed and mortgage-backed debt comprise the primary investment vehicles of the fund.