HSBC Asset Management is enhancing its Paris-aligned Benchmark equity ETF range with two additional launches – the HSBC MSCI Emerging Markets Climate Paris Aligned UCITS ETF and HSBC MSCI AC Asia Pacific ex-Japan Climate Paris Aligned UCITS ETF.
Olga de Tapia, Global Head of ETF & Indexing Sales, HSBC AM
The funds are due to be listed on the London Stock Exchange (LSE) on the 7th and 11th of April respectively, with further listings expected in Europe the following week.
These funds follow the launches of the existing PAB Equity ETF range and complement the four existing HSBC Climate Paris Aligned UCITS ETFs: the HSBC MSCI World, USA, Europe, and Japan Funds.
These ETFS have been designed to assist investors looking to integrate net zero considerations into their investment portfolios. Both funds consider the forward-looking decarbonisation trajectories of companies and lean towards companies that are 1.5 degree aligned. They will be classified as Article 9 funds under the European Union’s Sustainable Finance Disclosure Regulation (SFDR).
The new funds track the MSCI Emerging Markets Climate Paris Aligned benchmark Index and the MSCI AC Asia Pacific ex Japan Climate Paris Aligned benchmark Index respectively. These indices go beyond the minimum criteria required by the Paris Climate Accords. They seek to overweight companies with a high proportion of green revenue, those which are putting forward credible decarbonisation solutions, and those exposed to lower physical climate risk.
Olga de Tapia, Global Head of ETF & Indexing Sales, HSBC AM, commented: “Enabling our clients to improve the social and environmental impact of their portfolios is a priority for us. With the addition of these two new ETFs, we’re pleased to provide investors and asset allocators a comprehensive suite of core PAB building blocks.”
| Fund name | ISIN | Stock exchange | Bloomberg ticker | Benchmark | Total expense ratio (TER) |
| HSBC MSCI Emerging Markets Climate Paris Aligned ETF | IE000FNVOB27 | London Stock Exchange (LSE) | HPEM LN | MSCI Emerging Markets Benchmark Index | 0.18% |
| HSBC Asia Pacific ex-Japan Climate Paris Aligned UCITS ETF | IE000XFORJ80 | London Stock Exchange (LSE) | HPAX LN | MSCI APAC Benchmark Index | 0.25% |
Source: ETFWorld.co.uk
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