Sibos day 1: A new way to invest in global trade

A new opportunity for investors

Today, we were proud to announce that HSBC Asset Management has launched a Trade and Working Capital Solutions strategy ("TWCS") in partnership with HSBC’s Global Trade Solutions. This is an innovative credit product created to give you access to a compelling and non-traditional investment asset class.

TWCS offers a way to diversify your portfolio with real-economy assets. These assets have a low correlation to other investments, which means they can offer stability when traditional markets might be turbulent. You can benefit from a potentially attractive yield on a low-risk, low-volatility portfolio. This strategy provides direct access to an asset class that has typically been held on the balance sheets of trade banks.

The new strategy invests in a diversified pool of trade finance and working capital assets. This includes facilities such as receivables finance, supply chain finance, and bill discounting. It has access to HSBC’s global deal flow and existing loan book—a significant pool, as HSBC facilitated USD $857 billion of trade in 2024 across more than 50 countries.

Understanding trade assets

Trade assets are essential to the daily operations of businesses around the world. Here are a few key things to know about them:

• They are short-term, typically with a maturity of one to three months
• They are linked to the working capital cycle of businesses
• They are generally self-liquidating at maturity

These characteristics underpin the resilience of the strategy. TWCS is designed for portfolio diversification combined with a potentially attractive risk return profile.

Insights from the stage

Our experts were also busy sharing insights on the first day of Sibos. Here are a few highlights:

• Michael Roberts, CEO of Corporate & Institutional Banking, offered his "View from the Top," reflecting on the extraordinary changes in the trade environment since Sibos 2024 and the efforts banks like HSBC have made to help clients adapt. Michael welcomed the growing regulatory clarity around the future of money
• Vivek Ramachandran, Global Head of Trade Solutions, explained practical ways to develop resilient supply chains in today's fragmented world. Trade policy will remain dynamic and unpredictable, he said. But opportunities abound in the new environment, notably in services trade, which accounts for 67%* of global GDP, and in the continuing digitisation of global trade

Stay tuned for further exciting announcements and insights from Frankfurt. Look out for our next update tomorrow as we continue to explore the future of finance.

Further insights