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Sustainable Investing Alerts: November 1 – November 15, 2018

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November 13, 2018
DUE DILIGENCE Alert: MODERATE
COMPETITIVE Alert: 3
Event: HSBC Introduces Global Sustainable funds in the UK.
Briefing Points: i) HSBC Global Asset Management (GAM) introduced two global sustainable funds, a multi-asset conservative portfolio and a multi-asset balanced portfolio. The funds are part of the established HSBC GAM multi-asset series, ii) The conservative portfolio has a 35% equity position, while the balanced fund has a 60% equity position, iii) The two new funds will employ the same approaches and each will invest “across asset classes and regions” and will seek a higher average ESG score and lower portfolio carbon intensity than the market. This is to be achieved by including only asset classes in long term allocations where sustainable characteristics can be measured and will follow one or more of the seven industry recognized sustainable investment methods, as set out by the Global Sustainable Investment Alliance.
Affected Fund(s): HSBC Global Sustainable Multi-Asset Conservative Portfolio and HSBC Global Sustainable Multi-Asset Balanced Portfolio
Asset Classes: US and Non-US Equities and Fixes Income
Management Company: HSBC Global Asset Management (London, UK)
DD Concern: New untested mandate
Marketing Considerations: Building off the firm’s well-established global multi-asset record is a clear positive. The firm does, however, need to prove its sustainable investment approach and expertise.

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