ESG Fund Factsheet

For adviser use only

HSBC Sustainable Multi-Asset

Classification: Sustainable
Management style: Blended

Introduction

The HSBC Global Sustainable Multi-Asset range consists of 5 risk-targeted multi asset funds that are managed to stay within their individual volatility targets and include sustainability criteria. The 5 funds are risk mapped to several risk ratings agencies to cover the risk appetite for the majority of clients.

Name Launch Date IA Sector Portfolio OCF* Fund Size (m)
HSBC Global Sustainable Multi-Asset Cautious C Acc 20/04/2020 Volatility Managed 0.81% £15.3
HSBC Global Sustainable Multi-Asset Conservative C Acc 24/10/2018 0.6% £265.2
HSBC Global Sustainable Multi-Asset Balanced C Acc 24/10/2018 0.6% £522.5
HSBC Global Sustainable Multi-Asset Dynamic C Acc 20/04/2020 0.68% £113.4
HSBC Global Sustainable Multi-Asset Adventurous C Acc 20/04/2020 0.87% £25.5

About HSBC Global Asset Management

They are a global asset manager with a strong heritage of successfully connecting clients to global investment opportunities.

Their proven expertise in connecting the developed and developing world allows them to unlock sustainable investment opportunities for investors in all regions. Through a long-term commitment to their clients and a structured and disciplined investment approach, they deliver solutions to support their financial ambitions.

As of end of March 2021, they managed USD621 billion globally for a range of clients, from some of the largest institutional investors in the world to commercial and corporate clients, financial intermediaries, retail and private banking clients.

Assets under management*

£941.9m

Total Assets in Sustainable Futures fund range

*As at  31/7/22

ESG Process

The portfolios invest in a range of sustainable investment strategies which aim to consider financial returns alongside carbon intensity, environmental, social and governance factors, over the medium to long-term.

Each holding within the portfolio must be managed in line with at least one of the seven recognised sustainable investment methods as set out by the Global Sustainable Investment Alliance (www.GSI-alliance.org). These are:

  • Negative screens
  • Positive screens
  • Sustainable themes
  • Norms based screening
  • Impact investing
  • ESG integration
  • Active stewardship and voting

Positive Screening

When considering investments HSBC:

  • Consider the environment and society
  • Support the Paris Climate Agreement & UN Sustainable Development Goals
  • Build on foundations of their commitment to the Principles of Responsible Investment and active stewardship.

Exclusion Policies

HSBC use a “best-in-class” SRI screening approach, where companies are assessed based on a proprietary ESG research model. First, all controversial weapons companies are excluded, following which the remaining companies are given an internal ESG rating (0-10), and then divided in quartiles by sector. The 1st and 2nd quartile are permissible investments, 3rd quartile is limited to 15% of the final portfolio, and 4th quartile is excluded.

Key Themes

HSBC reference the UN Sustainable Development Goals including:

  • Good Health & Wellbeing
  • Affordable & Clean Energy
  • Decent Work & Economic Growth
  • Responsible Consumption & Production
  • Climate Action

Cost

The average OCF over the full range and share classes is 0.57%. This is very competitive for a blended managed ESG range.

Investment Performance

The funds have been compared to a universe of peers determined by Morningstar based on their objectives and holdings. The funds launched in 2020 have been compared over 1 year, and those launched in 2018 have had the annualised performance over 3 years compared. All but the Cautious fund have outperformed the peer group average over the time period.

Source HSBC, 31/07/2022

Past performance is not a guide to future performance.

Platform availability

HSBC Multi-Asset funds are available on the following platforms:

  • AJ Bell
  • Elevate
  • M & G Wealth
  • Fidelity
  • Novia
  • Nucleus
  • Transact

Risk tools

HSBC Multi-Asset funds are mapped to the following risk tools:

  • Dynamic Planner
  • Defaqto
  • EValue
  • Synaptic
  • Finametrica

Supporting documents

Tenet Opinion

HSBC have a detailed ESG policy which we believe will cover the majority of clients who would like their investments to make positive change without sacrificing entire sectors and potential gains.

The inclusion of passive options where possible helps keeps the cost down compared to other alternative multi-asset funds in this space. They also try to make use of internal HSBC funds to fill their asset allocation wherever they have coverage.

This range focuses on sustainability with no particular bias to impact investments. This makes is more suitable for clients who would like some level of ESG integration but not strong, specific ethical views.

Information approved for Professional Adviser use only and should not be relied upon by private investors (this is not for Retail Clients).