Stockholm (NordSIP) – HSBC Global Asset Management has announced the launch of eight ESG-focused ETFs during the first six months of 2020. The funds will focus on Europe, Japan, US, developed markets, emerging markets, Asia, UK and Europe ex UK.
To satisfy the needs of managing these new funds, HSBC has also announced the creation of 15 new roles within HSBC GAM’s global workforce. The new positions will assist with product development, operations, sales, capital markets, marketing and ETF strategies.
This latest push follows the replacement of Sridhar Chandrasekharan as Global CEO of HSBC GAM by Nicolas Moreau during the summer of 2019. Mr Moreau was the CEO of DWS until October 2018, taking the company public. Prior to this, he had been the CEO of AXA France since 2016.
The launch of these ETFs is part of Mr Moreau overhaul of HSBC’s asset management arm, which he hopes will facilitate growth within a relatively stagnant part of the wider group. Assets in ESG-themed ETFs more than doubled in 2019 to a record US$52.4 billion at the end of November, according to ETFGI, a London-based consultancy. According to HSBC Holdings Plc’s April 2019 Sustainability Report, the group has “pledged to provide US$100 billion in sustainable financing and investment by 2025”. HSBC GAM managed USD455 billion at the end of 2018.
“ETFs are still one of the fastest growing investment products in Europe and Asia, and we are seeing increased demand from our clients for ESG-focused ETFs,” said Moreau, commenting on this announcement. “Combining our responsible investment and ETF expertise is a natural next step for us. These launches will also provide our distribution partners with the right products to cater to the demand they see from their clients.”
“Combining our responsible investment and ETF expertise is a natural next step for us,” the CEO added. “These launches will also provide our distribution partners with the right products to cater to the demand they see from their clients.”
Along with the new eight ESG ETF funds, HSBC GAM has also announced plans to develop a fixed income ETF platform as well as its intention to launch a passive platform for precious metals later in the year. At the top, Mr Moreau has appointed Christophe de Backer, Edmund Stokes and Brian Heyworth as global head of wholesale business and partnerships, global chief operating officer and global head of institutional business, respectively
Image courtesy of HSBC