HSBC Asset Management (HSBC AM) has launched the HGIF Global Equity Circular Economy fund, which will target both wholesale and institutional investors with a particular focus on high-net-worth individuals, family offices and private banks.
HSBC AM says the fund will invest in around 60 companies that are enabling the transition to a circular global economy, by designing out waste and pollution, keeping products and materials in use and regenerating natural systems.
It will be benchmark agnostic and take a bottom-up, high conviction stock selection approach. There will be no fixed allocations across geographies, sub-subsectors or company stages.
The fund will be classified as Article 9 under the EU’s Sustainable Finance Disclosure Regulation (SFDR) and aims to deliver on several UN Sustainable Development Goals, HSBC AM says.
The fund will target both wholesale and institutional investors with a particular focus on high-net-worth individuals, family offices and private banks.
This fund will support companies that are leading the way in this incredibly important area of innovation.
Portfolio Manager & Head of Climate Equity, Benedicte Mougeot, said: “We’re launching this fund to help finance the transition to more sustainable ways of dealing with resources and waste whilst giving investors access to a unique investment opportunity.”
The fund follows the launch of three environmental, social, and corporate governance (ESG) focused funds this year. Additionally, last year the firm launched its first thematic healthcare fund, the HSBC GIF Global Equity Sustainable Healthcare Fund, which HSBC AM says aims to address the challenges in the healthcare industry while driving social impact.
Head of Sustainability, HSBC Asset Management, Erin Leonard, said: “We use the equivalent of 1.8 planets for resources each year and critical resources are becoming increasingly scarce.
“We need for businesses to be smarter in their production and consumption models. This fund will support companies that are leading the way in this incredibly important area of innovation.”
