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Building the future together

Tackling Climate Change

Generating attractive investment returns with a sustainable portfolio

 

Awards

Rising demand for transformational changes to address climate risk and to combat climate change is a megatrend for the ages. The HSBC GIF Global Equity Climate Change strategy aims to capture the investment opportunities within the theme by investing in innovative companies that can offer the best solutions to address the climate challenge.

Our pure thematic solution-focused approach selects a range of exposures throughout the growing universe of companies across developed and emerging markets, industries and market cap.


Climate change
March 2021

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Why consider investing in HSBC GIF Global Equity Climate Change?

By following an active, bottom-up approach the fund aims to provide attractive returns whilst investing in companies which are positioned to benefit from efforts to adapt to climate change

Climate change - the ultimate megatrend

Icon BulletRising demand for transformational changes to address climate risks
BulletWe are well-positioned to benefit from the resultant tectonic investment disruption

Pure thematic approach - solution focused

Icon BulletInvesting in innovative companies that offer the best solutions for the climate challenge
BulletHigh conviction portfolio driven by active fundamental analysis
BulletDeep fundamental research that enables to deliver a portfolio focused on 40-60 stocks, diversified by sector and theme

Addressing climate change - making your money matter

Icon BulletInvesting in lower carbon footprint, higher ESG, net zero commitment, 5 globe Morningstar Sustainable rating
BulletOffering an unique opportunity to substitute a core global equity allocation
BulletPortfolio carbon intensity less than 50% of MSCI ACWI
BulletPortfolio ESG score 20% greater than MSCI ACWI

Profitable to be part of the solution, costly to be part of the problem

Icon BulletInvesting in sustainability funds sacrificing investment returns
BulletOur fund has outperformed the market and competitors on a 1, 3 & 5 year basis

HSBC helping to finance the energy transition

Icon BulletCommitment to responsible investing - World’s Best Bank for Sustainable Finance1
BulletWell-resourced team of investment experts and extensive resources

1 Euromoney 2020 “World’s Best Bank for Sustainable Finance”.
Source: HSBC Holdings Plc, as at 31 December 2020, unless otherwise indicated.

 

Our Thematic Approach

Solutions across 9 subthemes







Source:
1. IRENA 2019
2. New Climate Economy 2016
3. Danfuss 2020
 
4. FC 2019
5. McKinsey 2019
6. Global Commission on Adaptation 2019
 
7. BAML 2020, citing UN 2019
8. World Economic Forum
9. Barbier et al 2019

Key risks

The value of an investment in the portfolios and any income from them can go down as well as up and as with any investment you may not receive back the amount originally invested.

  • Counterparty Risk: The possibility that the counterparty to a transaction may be unwilling or unable to meet its obligations.
  • Derivatives Risk: Derivatives can behave unexpectedly. The pricing and volatility of many derivatives may diverge from strictly reflecting the pricing or volatility of their underlying reference(s), instrument or asset.
  • Emerging Markets Risk: Emerging markets are less established, and often more volatile, than developed markets and involve higher risks, particularly market, liquidity and currency risks.
  • Exchange Rate Risk: Changes in currency exchange rates could reduce or increase investment gains or investment losses, in some cases significantly.
  • 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.
  • 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.