HSBC Asset Management (HSBC AM) has launched a fund that will invest in a diversified portfolio of global assets under its sustainable investment strategy. The HSBC Global Sustainable Multi-Asset Income Fund focuses on assets that promise attractive yields 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, HSBC AM says. 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 amid expected volatility levels.
Jimmy Choong, associate director, Hong Kong multi asset & wealth, HSBC AM, who is the manager of the fund, comments: “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,” Choong adds.
The fund is available to retail investors in Hong Kong. Its base currency is the US dollar, although share classes are also available in other currencies such as Hong Kong dollar, renminbi, Canadian dollar, euro, Australian dollar and sterling pound. The initial offering period will end on January 21 2022 and the fund will begin trading on the same day.
HSBC AM says ESG considerations are incorporated into 90% of its assets under management (AUM). As of October 31 2021, it has 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.