Sukuk GBP Hedged Share Classes
HSBC Asset Management Launches Sterling-Hedged Share Classes for Global Sukuk UCITS ETF
- Launch aims to expand access for UK defined contribution pension schemes
3 September 2026 – HSBC Asset Management (HSBC AM) today announces the launch of GBP (sterling) FX-hedged share classes for the HSBC Global Funds ICAV – Global Sukuk UCITS ETF (the “Fund”).
The Fund has historically offered USD-based share classes, and the introduction of sterling-hedged share classes is designed to improve accessibility for UK defined contribution (DC) pension clients by helping them manage currency exposure in a Shariah-compliant way. It reflects strong demand from UK pension schemes for Sukuk exposure with reduced FX volatility versus sterling.
The Fund, which had USD 547m in assets under management as at end of June 2026, will be available to investors via both listed ETF and unlisted share classes with the Shariah-compliant FX-hedged share classes applicable across both formats. The launch of GBP-hedged ETF share classes on the London Stock Exchange is subject to final regulatory approval.
The launch is expected to be the market’s first Shariah-compliant FX-hedged share classes for a passive UCITS Sukuk fund. It has been enabled through close collaboration between HSBC Asset Management, HSBC Bank Middle East Limited (HBME), HSBC Global FX Services and HBME’s Islamic banking capability – bringing together investment, distribution, trading infrastructure and operational controls to deliver a solution designed to meet both investor needs and Shariah requirements.
Olga de Tapia, Global Head of ETF & Indexing Sales at HSBC Asset Management, said: “Investors are increasingly looking for ways to access index-based Sukuk exposure while managing currency risk in a way that remains aligned to Shariah principles. Launching Shariah-compliant FX-hedged share classes for our passive UCITS Sukuk fund is an important step forward for the market—and it reflects what we can deliver when we connect ETF and indexing expertise with the broader capabilities of the HSBC Group. We’re pleased to launch unlisted GBP-hedged share classes to meet strong demand from UK DC pension clients, and we look forward to bringing GBP-hedged ETF share classes to the London Stock Exchange in the weeks ahead.”
Vincent Bonamy, Head of Global FX Services at HSBC, said: “Understanding the demand from investors for Sukuk exposure, we leveraged our Global FX Services platform to use a Wa’ad structure and create Shariah-compliant FX hedged share classes.”
The FX hedging is implemented using a Wa’ad (unilateral promise) structure commonly used in Islamic finance. This approach is designed to deliver a similar economic outcome to conventional hedging, while keeping the underlying currency exchange executed on a spot basis at the time of settlement in line with Shariah principles.
Notes to editors
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Notes to investors
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. These share classes may be denominated in foreign currencies. Returns and costs may vary with fluctuations in exchange rates.
The information contained in this press release does not constitute an offer or solicitation for, or advice that you should enter into, the purchase or sale of any security or fund. Any views expressed are subject to change at any time.
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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. Where overseas investments are held the rate of currency exchange may also cause the value of such investments to fluctuate. Investments in emerging markets are by their nature higher risk and potentially more volatile than those inherent in some established markets.
HSBC Asset Management
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