HSBC Asset Management introduces an investment fund for the circular economy.
An Article 9 circular economy fund, launched by HSBC Asset Management, aims to achieve all 17 UN Sustainable Development Goals.
According to HSBC, the Article 9 fund is described as having sustainable investment or carbon reduction as its objective. It will also seek to target both wholesale and institutional investors with a focus on high-net-worth individuals, family offices, and private banks.
About 60 businesses that are “supporting the transition to a circular global economy” through work in areas including recycling, restoring natural systems, and “designing out waste and pollution” will get investment from the HGIF Global Equity Circular Economy fund.
Benedicte Mougeot, portfolio manager and head of climate equity, and Francois Travaille, co-portfolio manager, will oversee its management.
The fund will not be subject to predetermined allocations by geography, sub-sectors, or company stages and will not be benchmark-specific.
According to HSBC, the fund will concentrate on high-net-worth individuals, family offices, and private banks and will target both institutional and wholesale clients.
According to Mougeot, the goal of establishing this fund is to provide investors with a one-of-a-kind investment opportunity while assisting in financing the shift to more sustainable methods of managing resources and trash.
Erin Leonard, head of sustainability at HSBC AM, said that they utilized the equivalent of 1.8 planets worth of resources each year, and essential resources were getting harder to come by.
Leonard added that businesses had to adopt more intelligent production and consumption models. So, this fund will assist businesses that are setting the standard in this crucial area of innovation.
Following the debut of an Asia bond fund and two ETFs with a focus on emerging markets and Asia-Pacific excluding Japan this year, this is the fourth ESG-focused vehicle from HSBC AM.
