Circular Banking : New Circular Funds Launched by HSBC
HSBC Asset Management (HSBC AM) has created the HGIF (HSBC Global Investment Funds) Global Equity Circular Economy fund targeting both wholesale and institutional investors with a focus on high-net-worth individuals, family offices, and private banks. According to HSBC AM, the fund will invest in about 60 businesses that are facilitating the shift to a global circular economy by keeping goods and resources in use, eliminating waste and pollution, and renewing natural systems.
The fund will employ a bottom-up, high-confidence stock selection methodology and be benchmark-independent. There won't be any predetermined distributions among regions, sub-subsectors, or stages of companies. The fund will, furthermore, be categorized as Article 9 under the EU's Sustainable Finance Disclosure Regulation (SFDR) and intends to contribute to a number of UN Sustainable Development Goals.
“We’re launching this fund to help finance the transition to more sustainable ways of dealing with resources and waste whilst giving investors access to a unique investment opportunity", said Benedicte Mougeot, Portfolio Manager and Head of Climate Equity. This year has seen the introduction of three HSBC funds with an emphasis on corporate governance, the environment, and social issues. The HSBC GIF Global Equity Sustainable Healthcare Fund, which the company introduced last year, intends to address the difficulties that the healthcare sector is facing while generating social impact, according to HSBC AM.
“We use the equivalent of 1.8 planets for resources each year and critical resources are becoming increasingly scarce”, said Erin Leonard, Head of Sustainability at HSBC AM. Businesses must adopt more intelligent manufacturing and consumption strategies. This new fund will assist businesses that are setting the standard in this crucial area of innovation. The HGIF Global Equity Circular Economy fund comes after the introduction of three ESG-focused HSBC products this year, including an Asia ESG Bond fund and two Paris-aligned UCITS ETFs with a focus on emerging markets and the Asia-Pacific region, excluding Japan.