HSBC Global Asset Management has launched two lower carbon funds underlining the growing momentum around climate-related investments.
The HSBC GIF Global Lower Carbon Equity Fund and the HSBC GIF Global Lower Carbon Bond Fund aim to address climate-related investment risk by using carbon data to achieve a lower carbon portfolio than their benchmarks, the firm said.
The equity fund, benchmarked to the MSCI World Index US dollar, will seek a lower portfolio carbon footprint than its reference benchmark by reducing total exposure to securities with the highest greenhouse gas emissions. The fund will primarily invest in developed market equities.
The bond will primarily invest in investment grade corporate bonds using the same investment philosophy and process as the rest of HSBC Global Asset Management’s global fixed income products.
Recent research for HSBC found that 68% of institutional investors were planning to increase their low carbon investments in the year ahead, up 4.3% on last year.
Melissa McDonald, who head global product for equity and responsible investment at the firm, said: “Taking a proactive approach can help investors to mitigate the risks associated with climate change, estimated at a loss of return of 0.82% per year for developed equities.”
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