HSBC Asset Management has launched a new ESG money market fund, the HSBC US Dollar ESG Liquidity Fund.
The fund will invest in issuers that have an A1, P1 or F1 rating and that HSBC AM has identified as being better at addressing ESG risks than other issuers. HSBC AM say they will apply an ESG scoring system and ESG filters allowing institutional investors to focus their cash investments aligned to their sustainability objectives. They will also encourage issuers to address shortcomings in how they manage ESG risks. This ensures that their short term debt issuance is eligible to be purchased by the fund.
Jonathan Curry, Global Liquidity CIO, HSBC AM said: “We are committed to delivering market-leading solutions to meet the responsible investment ambitions of our clients. Our Sterling ESG money market fund has resonated strongly with investors seeking to align their cash investment activity with their organisations overall sustainability objectives. Expanding the currencies in which we offer within our ESG MMF strategy to include the US Dollar fund, will allow us to reach a more globally diverse group of investors, enabling them to invest in issuers that better manage ESG risks and with this investment influence, we anticipate issuers of short term debt will improve their ESG practices.”