HSBC Asset Management (HSBC AM) announced today the launch of the HSBC Bloomberg Sustainable Global Aggregate 1-3y Bond UCTIS ETF, expanding its recently introduced suite of sustainable fixed income ETFs.
The new fund follows the launch earlier this month of the HSBC Bloomberg EUR Corporate Sustainable Bond UCITS ETF and the HSBC Bloomberg USD Corporate Sustainable Bond UCITS ETF.
Classified as Article 8 under the EU SFDR regulation, the new aims to achieve a carbon emission intensity reduction target of greater than 50% relative to its parent index, and an ESG score improvement target of over 5%. The fund the investment grade Bloomberg MSCI Global Aggregate 1-3 Year SRI Carbon ESG-Weighted Index, which seeks to provide exposure across fixed income asset classes, including government and corporate bonds across developed and emerging markets.
In addition to incorporating Bloomberg’s ESG index approaches, the fund employs a carbon intensity screen, enabling it to exclude the worst carbon emission offenders, while also removing issuers involved in controversial industries, and those with poor ESG practices.
Olga de Tapia, Global Head of ETF & Indexing Sales, HSBC AM, said:
“Providing our clients with a viable means of improving the social and environmental impact of their portfolios is a priority for us. As ETFs continue to play an ever-greater role in client portfolios, it’s crucial that they support the net zero transition. With a significant improvement in ESG score and a notable reduction in carbon intensity, our latest fixed income ETF will help investors to achieve this.”