HSBC Asset Management has unveiled an ESG equivalent of its $13bn global aggregate bond ETF – technically Europe’s largest fixed income ETF by assets under management (AUM).
Only unlisted share classes of the HSBC Global Aggregate Bond ESG UCITS ETF are available initially, with the firm stating a listed share class will begin trading on the London Stock Exchange (LSE) in the “coming weeks”.
The ETF tracks the Bloomberg MSCI Global Aggregate SRI Carbon ESG-Weighted Select index, which aims to generate reduced emissions as well as an ESG rating improvement versus its parent index, the Bloomberg Global Aggregate index.
The product is categorised Article 8 under the Sustainable Finance Disclosure Regulation (SFDR) and applies screens and tilts to both government-related and corporate sub-sectors.
Olga de Tapia (pictured), global head of ETF & indexing sales at HSBC AM, commented: “The launch of the Global Aggregate Bond ESG UCITS ETF reflects our commitment to developing innovative fixed income solutions, combining a globally diversified approach with sophisticated ESG methodologies.
“This latest addition to our fixed income ETF range aims to help investors meet their investment objectives through diversified fixed income exposure while supporting the transition towards a low-carbon economy.”
The new launch becomes the latest HSBC AM product to be made available in listed and unlisted format, after the firm launched four ETF share classes of its existing Irish domiciled global aggregate bond strategy in May this year.
This came after the asset manager became the first to offer ETF and unlisted shares within an Ireland-domiciled fund after it converted four global bond index funds to ETFs in April 2023.
Such moves have seen the firm quickly climb the fixed income ETF AUM rankings, owing to the Central Bank of Ireland’s (CBI) current share class naming convention, which compels mutual funds to be rebranded with the ‘UCITS ETF’ moniker at the sub-fund level as soon as one listed share class is launched.
