The new primarily invests in third-party and proprietary mutual funds and exchange-traded funds throughout a variety of income-producing asset classes.
It aims to invest in a range of income-producing investments, including US government & investment-grade corporate bonds, high-yield bonds, emerging market bonds, US & international equities and real-estate.
The new fund intends to achieve moderate capital growth over the long-term to potentially help counteract the effects of inflation.
HSBC Global Asset Management (USA) Deborah Hazell said that demand for income remains high amongst US investors led by demographic influences and stock-market volatility.
"However, with US interest rates and treasury yields at historic lows, we think the launch of the HSBC World Selection Income Strategy Fund is very timely," Hazell said.
"It offers investors the opportunity to receive a professionally constructed and well-diversified portfolio with the aim of delivering potentially higher yields than those currently offered by traditional income-producing vehicles."
