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Global Sustainable Long Term Equity

A concentrated portfolio of resiliently growing businesses
SFDR Article 9 Fund
Marketing Communication

Getting to know opportunities in Sustainable Equities over the long term

Listen to our Portfolio Manager bringing alive the opportunities that Sustainable Equities offer in the long term. Watch this video to know more about HSBC’s long term Sustainable Equities, the portfolio workings and the benefits to investors.
Against the backdrop of a marketplace enchanted by short-term outcomes, the long-term investor can generate strong returns by harnessing a process specifically designed to find companies which produce growing cash-flow streams
Darryl Lucas, Head of Sustainable Long-Term Equities

In focus

Why Global Sustainable Long Term Equity?

The Global Sustainable Long Term Equity Fund aims to provide long-term capital growth and income by investing in shares issued by companies that actively contribute to United Nations Sustainable Development Goals, while promoting environmental, social and governance characteristics.

  • 10/10 approach – 10-year forecasting, 10-year intended holding period
  • Sustainability – considering sustainability of business models, practices and culture, and products to go beyond ESG metrics
  • Credit Aware – unique insights through our rigorous credit analysis framework
  • Fundamentally driven – analysing companies fundamentally, under several scenarios, in order to build our own risk framework
  • Conviction – high active share, unconstrained, best-in-class approach to company selection

Investment Process

We are looking for companies that exhibit a combination of:

Adaptability

Adaptability
Companies able to iterate its business model and products
Resiliency

Resiliency
Businesses meaningful in control of their long term destiny, not overly dependent on external factors
Repeatability

Repeatability
Business models that don’t change too much over time. They get better at what they do, their products improve, but the business model doesn’t change fundamentally
Sustainability

Sustainability
Sustainability of product, business model, practices, and culture

Key risks

The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested.

  • Concentration Risk: The Fund may be concentrated in a limited number of securities, economic sectors and/or countries. As a result, it may be more volatile and have a greater risk of loss than more broadly diversified funds.
  • Counterparty Risk: The possibility that the counterparty to a transaction may be unwilling or unable to meet its obligations.
  • Exchange Rate Risk: Changes in currency exchange rates could reduce or increase investment gains or investment losses, in some cases significantly.
  • Investment Leverage Risk: Investment Leverage occurs when the economic exposure is greater than the amount invested, such as when derivatives are used. A Fund that employs leverage may experience greater gains and/or losses due to the amplification effect from a movement in the price of the reference source.
  • Liquidity Risk: Liquidity Risk is the risk that a Fund may encounter difficulties meeting its obligations in respect of financial liabilities that are settled by delivering cash or other financial assets, thereby compromising existing or remaining investors.
  • Operational Risk: Operational risks may subject the Fund to errors affecting transactions, valuation, accounting, and financial reporting, among other things
  • Sustainability Risk: Sustainability risk means an environmental, social or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment

Further information on the potential risks can be found in the Key Information Document (KIID) and/ or the Prospectus or Offering Memorandum.

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