HSBC is set to provide custody and fund administration services to two new generation sustainable exchange traded funds (ETFs), while also acting as authorised participant and market-maker.
The launch of the new ETFs by HSBC’s global asset management business includes HSBC Emerging Market Sustainable Equity UCITS ETF, which was listed on the London Stock Exchange on 28 August.
The second ETF is HSBC Asia Pacific ex Japan Sustainable Equity UCITS, which was listed on the London Stock Exchange on 21 August.
HSBC noted that the ETFs will be benchmarked against the FTSE Russell ESG Low Carbon Select indices, targeting a 20 percent environmental, social and governance improvement and a 50 percent reduction on carbon and fossil fuels reserves intensity.
The two new ETFs are in addition to the four sustainable ETFs HSBC launched earlier this year: HSBC Europe Sustainable Equity UCITS ETF, HSBC Japan Sustainable Equity UCITS ETF, HSBC USA Sustainable Equity UCITS ETF, and HSBC Developed World Sustainable Equity UCITS ETF.
The ETFs are designed to offer a cost-efficient exposure to developed and emerging equity markets at global, regional and country levels.
Paul Heffernan, head of business development and client management – asset managers, HSBC, said: “The launch of these new generation of sustainable ETFs demonstrates how HSBC is combining its depth of expertise and range of capabilities across its Markets & Securities Services franchise to support clients with new products that meet investors’ ESG criteria for companies contributing to a low carbon future.”
