HSBC Asset Management Launches HSBC Global Sustainable Multi-Asset Income Fund

HSBC Asset Management has announced the launch of the HSBC Global Sustainable Multi-Asset Income Fund.

The Fund aims to provide potential income through investment in a diversified portfolio of global assets that form part of the sustainable investment strategies. The Fund is also part of HSBC AM’s stepped-up effort in shaping the market for sustainable investing through the development of new products and solutions, and by continuing to embed ESG across its investment approach. 

By adopting an income approach, the Fund focuses on attractive yielding assets1 while taking Environmental, Social and Governance (“ESG”) factors into account. The asset portfolio aims to have a higher weighted average ESG score and lower weighted average carbon intensity rating than the market. With investments spanning across 50 countries and over 30 currencies with multiple asset classes, the investment process is framed by reference to a pre-defined risk budget which aims to reduce risk level amidst expected volatility levels. 

Jimmy Choong, Associate Director, Hong Kong Multi Asset & Wealth, HSBC Asset Management, who is the manager of the Fund, said, “As we face a nearly irreversible climate change, governments have agreed to make significant steps to transit to a low-carbon world. Corporates have to ensure that their business models are operating in a sustainable way to adapt to this mega trend for their financial performance. We believe the intersection of sustainability and income potential is a space with considerable opportunities. The sustainability framework does not only consider a company’s current profitability but also serves as a guide to safeguard investments and our collective interests in the long run by shining a light on companies that are leading the way in a changing world. We expect that post-Covid recovery will continue. Risky assets such as global equities could provide reasonable returns in this expansion phase of the economic cycles. Also, we exploit investment opportunities globally from both developed and emerging markets to harvest sustainable income potential. Emerging assets have scope for catch-up in 2022 amid decent valuations. A global multi-asset portfolio could help capture these investment opportunities while offering diversification benefits and mitigating risks."

Alison Brown, Director & Head of Sales, Wholesale Business, Hong Kong and China, HSBC Asset Management, said, “As sustainable investment continues to thrive globally, it is expected that global ESG assets will reach US$53 trillion in 20252. Coupled with an increasing awareness of the benefits of ESG investing, we have seen a strong appetite amongst investors in Asia who have shifted their focus to investing in sustainable assets amidst the pandemic worries. The launch of this Fund will give investors access to a globally diversified portfolio of sustainable assets while diversifying risks through investments in various markets and asset classes. Our diversified investment approach offers investors a solution to draw income from a broader universe of sustainable assets, capturing potential growth through responsible investment. At the same time, with the implementation of connectivity schemes including but not limited to the Mutual Recognition of Funds and also the recent Cross-boundary Wealth Management Connect Scheme, we are launching this fund on a Hong Kong domiciled platform with a view to serving the needs of the broader customers in the region including the Greater Bay Area.”  

The Fund is available to retail investors in Hong Kong today. Its base currency is USD; share classes are also available in other currencies including HKD, RMB, CAD, EUR, AUD and GBP. The initial offering period will end on 21 January 2022 and the Fund will begin trading on the same day. 

HSBC AM’s engagement in responsible investment has achieved promising results over the past two decades. Currently, 90% of our assets under management (AUM) has incorporated ESG considerations. As of 31 October 2021, we have recorded a 60% year on year growth in AUM managed under sustainable investing strategies. In 2021, a total of 17 funds with responsible investment or sustainability focus were launched globally.   Going forward, HSBC AM will continue its efforts to explore innovative investment solutions to meet client investment and sustainability goals3.