HSBC AM has admitted two new actively managed equity income funds to trading on the London Stock Exchange (LSE).
By ETFWorld.co.uk
Olga de Tapia, Global Head of ETF & Indexing Sales, HSBC Asset Management
Two quantitative income-focused funds expand issuer’s “PLUS” active ETF suite.
The listings, effective today, expand the bank’s range of quantitative “PLUS” strategies targeting dividend yield and capital growth.
The newly listed funds are the HSBC PLUS Emerging Markets Equity Income Quant Active UCITS ETF USD (Acc) (ISIN: IE000RN4ORI2) and the HSBC PLUS World Equity Income Quant Active UCITS ETF USD (Acc) (ISIN: IE000T52YWD9). Both are structured as Irish-domiciled UCITS and trade in US dollars.
Fund Specifications & Strategy
The ETFs employ a quantitative, rules-based active management process. The objective for both is to invest for dividend yield and provide long-term capital growth[citation:provided-text]. Their investment policies are detailed below.
| Fund Feature | HSBC PLUS Emerging Markets Equity Income ETF | HSBC PLUS World Equity Income ETF |
|---|---|---|
| Reference Benchmark | MSCI Emerging Markets Index | MSCI World Index |
| Investment Universe | Companies in or earning revenue from emerging markets | Companies in or earning revenue from developed markets |
| Management Style | Active Quantitative | Active Quantitative |
| Total Expense Ratio (TER) | 0.350% | 0.250% |
| Distribution Policy | Accumulating (Acc) | Accumulating (Acc) |
| SFDR Classification | Article 6 | Article 6 |
| Replication Method | Physical (Full replication) | Physical (Full replication – inferred from strategy) |
The quantitative process is designed to maximize exposure to shares with attractive income and quality characteristics while minimizing portfolio risk relative to the reference benchmark. Managers apply constraints on sector, country, and single-stock weights. Both funds are permitted to invest up to 10% of assets in other funds, including those managed by HSBC.
Key Considerations for Investors
Active Management & Risk: As actively managed Article 6 funds, performance can deviate significantly from their reference benchmarks. The focus on income and quality factors is a distinct strategy, not a passive index replication.
Specific Risks: The Emerging Markets fund carries risks including higher volatility, liquidity constraints, and currency fluctuations compared to developed market investments.
Cost Structure: The stated TER is competitive within their peer groups, particularly for an active strategy.
Securities Lending: HSBC Asset Management operates a securities lending programme for its ETFs to generate additional returns for the fund.
Trading Information
The ETFs are admitted to trading on the London Stock Exchange as of 23 January 2026. Investors can trade shares through brokers on the secondary market.
| Product Name | HSBC PLUS Emerging Markets Equity Income ETF |
| ISIN | IE000RN4ORI2 |
| SEDOL | BTWRLT7 |
| Trading Currency | USD |
| Underlying | MSCI Emerging Markets Index |
| Management Fee | 0.35% |
| Product Name | HSBC PLUS World Equity Income ETF |
| ISIN | IE000T52YWD9 |
| SEDOL | BN72RM0 |
| Trading Currency | USD |
| Underlying | MSCI World Index |
| Management Fee | 0.25% |
Source: ETFWorld.co.uk
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