HSBC Asset Management has launched the HSBC Sterling ESG Liquidity Fund.
The new money market fund will invest in a portfolio of issuers that have an A1, P1 or F1 rating and are better at addressing ESG risks than competitors. For this, the fund will apply an ESG scoring system and relative ESG filters. The fund has so far received seed investment from British multinational retailer Tesco.
HSBC AM says it will be encouraging issuers to address identified shortcomings in how they manage ESG risks. This ensures that companies are aware that their ESG performance is factored into decisions on whether their short term debt issuance is eligible to be purchased by the fund.
Jonathan Curry, Global Liquidity & Americas CIO, HSBC AM said: “We are committed to delivering market-leading solutions to meet the responsible investment ambitions of our clients. For corporate treasurers, the use of a money market fund that credibly applies ESG to its investment process can contribute to the company’s overall sustainability objectives. For individual or institutional investors with a specific focus on sustainable investing, cash no longer needs to be an afterthought in a sustainably invested portfolio.”