HSBC Asset Management launches Sterling ESG Liquidity Fund
HSBC Asset Management (HSBC AM) announces the launch of a new ESG money market fund (MMF), the HSBC Sterling ESG Liquidity Fund. The fund has received seed investment from British multinational retailer Tesco.
The fund will invest in a portfolio of issuers that have an A1, P1 or F1 rating, or long term equivalent, and are demonstrably better at addressing ESG risks than other issuers in the investable universe. This will be achieved by applying a robust ESG scoring system and relative ESG filters that are appropriate for the money market investable universe. The fund will enable institutional investors - including large corporates, pension funds, insurers and others - to focus their cash investments in a solution that helps them meet their own sustainability objectives.
Issuer engagement will also be a key component of the fund’s approach. To meet sustainability goals, HSBC AM will be encouraging issuers to address identified shortcomings in how they manage ESG risks. This ensures that companies are aware that their ESG performance is factored into decisions on whether their short term debt issuance is eligible to be purchased by the fund. By doing so, HSBC AM aims to increase the focus on better management of ESG risks and achieve more sustainable outcomes.
In addition to the investment process focused on addressing ESG risks and opportunities, the fund will look to evolve to include other features to provide further contribution to investors’ sustainability objectives.
Jonathan Curry, Global Liquidity & Americas CIO, HSBC AM said: “We are committed to delivering market-leading solutions to meet the responsible investment ambitions of our clients.
“For corporate treasurers, the use of a money market fund that credibly applies ESG to its investment process can contribute to the company’s overall sustainability objectives. For individual or institutional investors with a specific focus on sustainable investing, cash no longer needs to be an afterthought in a sustainably invested portfolio.”
Paul Griffiths, Global Head Institutional Business, HSBC AM added: “The launch of our first ESG MMF is another innovative example of how we are providing our clients with opportunities that enable the transition to a more sustainable world.
HSBC AM currently manages liquidity assets in 10 global currencies and has USD118 billion in liquidity strategies1. In 2020, the firm set out its strategy to re-position the business as a core solutions and specialist emerging markets, Asia and alternatives focused asset manager, with client centricity, investment excellence and sustainable investing as key enablers.
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Notes to editors
 – As at 30 June 2021
For journalists only and should not be distributed to or relied upon by any other persons.
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HSBC Asset Management
HSBC Asset Management, the investment management business of the HSBC Group, invests on behalf of HSBC’s worldwide customer base of retail and private clients, intermediaries, corporates and institutions through both segregated accounts and pooled funds. HSBC Asset Management connects HSBC’s clients with investment opportunities around the world through an international network of offices in 25 countries and territories, delivering global capabilities with local market insight. As at 31 March 2021, HSBC Asset Management managed assets totaling US$621bn on behalf of its clients. For more information, see www.assetmanagement.hsbc.com/uk
HSBC Asset Management is the brand name for the asset management business of HSBC Group, which includes the investment activities provided through our local regulated entity, HSBC Global Asset Management (UK) Limited.
The HSBC Group
HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 64 countries and territories in its geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of $2,959bn at 31 March 2021, HSBC is one of the world’s largest banking and financial services organisations.
HSBC Holdings plc