HSBC Asset Management has launched an ESG-compliant fund to offer global investors the opportunity to contribute to Asia’s sustainable future, the firm said in a statement.
The HSBC GIF Asia ESG Bond fund, which meets Article 8 of the Sustainable Finance Disclosure Regulation (SFDR), will be co-managed by Citywire + rated Alfred Mui and Wilson Yip.
Mui is head of Asia fixed income investment management and Yip is associate director of fixed income in HSBC.
The new fund will focus on Asian companies that follow good ESG practices, such as having a low and decreasing carbon footprint, as well as aiming at transition bonds, social bonds, sustainability linked bonds and green bonds.
Negative screening will be executed to exclude sectors that have a low ESG rating, such as weapon manufactures, gambling and tobacco companies along with issuers that are believed to be breaching the UN global compact principles.
The aim is to reach both higher ESG score and a low carbon intensity score than its reference benchmark.
Mui said in the statement: As governments and companies across the region plan their paths to net zero, the demand for debt financing to support green projects will grow. At the same time, investing in Asia ESG bonds does not come at the expense of performance, according to historical data.’
HSBC Asset Management has been managing Asian credit strategies since 1996 and currently oversees $76 billion in Asian fixed income assets, including $19 billion in Asian credit, as of September 2021.
