HSBC Asset Management (HSBC AM) has introduced a new TWCS strategy in partnership with HSBC’s GTS business to facilitate greater access for investors to the realm of global trade finance.

The TWCS strategy is planned to operate within a diversified portfolio that encompasses various short-term trade finance and working capital assets, such as receivables finance, payables finance, trade loans, documentary trade instruments, among others. This strategic move aims to cater to both domestic and international corporate entities engaging in trading activities.

By adopting a global mandate, the strategy intends to participate in funding facilities for corporates and financial institutions involved in diverse trade activities. The focus will be on aligning with client needs while ensuring compliance with relevant regulatory standards and industry laws.

Mission and Operations of TWCS Strategy

Designed as an open-ended structure, the TWCS strategy seeks to provide appealing returns via a low-risk, diversified portfolio of real economy transactions. These transactions are expected to exhibit lower correlation with other credit asset classes and minimal sensitivity to market fluctuations, offering potentially more consistent earnings.

The management of the TWCS strategy is entrusted to HSBC AM’s Capital Solutions team, which will leverage its expertise in bank-originated deal flow. The launch occurs at a time when global trade dynamics are increasingly influencing corporate strategies, driving the development of robust trade and working capital solutions.

This initiative underscores HSBC Asset Management’s commitment to expanding its alternative credit platform and offering more varied solutions to institutional investors across regions like the UK and Europe, Asia, Canada, Australia, and the Middle East. The collaboration with HSBC’s GTS business promises enhanced access to new deal flow and existing assets, reinforcing HSBC AM’s position as a reliable provider of trade finance services.