HSBC launches trade and working capital solutions strategy

By Vriti Gothi

HSBC Asset Management (HSBC AM) has launched of its Trade and Working Capital Solutions (TWCS) strategy, developed in collaboration with HSBC’s Global Trade Solutions (GTS) business. The initiative aims to provide institutional investors with direct access to the expanding opportunities within global trade finance, leveraging HSBC’s unique market positioning and deal origination capabilities.

The TWCS strategy will invest in a diversified portfolio of short-term trade finance and working capital assets, encompassing receivables finance, payables finance, trade loans, documentary trade, and other instruments. Operating under a global mandate, the strategy will participate in facilities funding corporates and financial institutions engaged in both domestic and international trade flows.

Structured as an open-ended, evergreen vehicle, the TWCS strategy is designed to deliver attractive yields via a low-risk, diversified portfolio of real economy transactions. These assets exhibit low correlation with other credit classes and reduced sensitivity to market timing, positioning the strategy to provide more stable and resilient returns. HSBC AM’s Capital Solutions team, established in 2022 to offer clients access to bank-originated deal flow, will manage the strategy.

The launch coincides with an evolving global trade environment, as corporates reshape supply chains amid changing tariffs and market dynamics, driving heightened demand for robust trade and working capital solutions. Through its collaboration with HSBC’s GTS business, the world’s leading trade finance bank, the strategy benefits from direct access to both new deal flow and existing assets. HSBC’s extensive trade network spans over 50 markets, covering 85% of global trade flows and supported by more than 5,000 working capital specialists.

Vivek Ramachandran, Head of Global Trade Solutions at HSBC, said, “Trade assets represent a growing asset class that institutional investors want access to. With over 150 years of trade finance experience, our global network and commitment to innovation uniquely position us to connect institutional investors to the growth in trade. This new strategy brings together our global reach, origination strength and innovation to deliver robust trade finance solutions to clients and economies worldwide.”