HSBC AM adds EM sustainable bond fund

HSBC Asset Management has launched the HGIF Global Emerging Markets Corporate Sustainable Bond fund.

The fund will invest in bonds issued by companies that are domiciled in emerging markets and contribute to UN Sustainable Development Goals (SDGs). The fund will be classified as Article 9 under the EU’s Sustainable Finance Disclosure Regulation (SFDR).

HSBC AM says individual issuers will be selected based on their Sustainability Assessment that will target the areas that require the most attention in terms of the individual company’s sustainability challenges. If a company is unable to improve the sustainability of its operations in line with its objectives and demonstrate measures to improve its sustainability, the investment will be divested.

The fund will be overseen by L. Bryan Carter, Head of Emerging Market Debt and managed by Caroline Keany and Julio Obeso, Senior EM Corporates Portfolio Managers. Finnish pension insurance company Varma, has made an initial investment of US$50mn into the fund.