HSBC AM Lists New Sterling Money Market ETF on London Stock Exchange

The ETF is designed for investors seeking a low-volatility, liquid holding for Sterling cash. Its objective is to maintain the value of the initial investment, provide daily access to funds, and generate a return comparable to Sterling money market rates.

The fund is actively managed and will hold a diversified portfolio of short-term securities. All investments must mature within 397 days and hold a high credit rating of A-1 or P-1 (or equivalent) from agencies such as Standard & Poor’s or Moody’s at the time of purchase.

Eligible assets include certificates of deposit, commercial paper, government and corporate bonds, treasury bills, and asset-backed securities. These can be issued by companies, governments, and government-related entities.

The fund is structured to offer daily liquidity, allowing investors to buy or sell shares on any business day. It is classified as a Low Volatility NAV Money Market Fund under European Union regulations, meaning its net asset value is stable. The fund’s primary exposure is to Pound Sterling.

ISIN: IE000J4HXHK1

Summary: The HSBC Sterling Liquidity Fund provides a vehicle for institutional and retail investors to manage Sterling cash reserves with a focus on capital preservation and daily liquidity, while aiming for a return in line with short-term money market rates.