HSBC Asset Management (HSBC AM) has introduced an actively managed fund that invests in Asian bond issuers with strong environmental, social, and governance (ESG) credentials.
The HSBC GIF Asia ESG Bond fund will strive to outperform its benchmark, the JPMorgan ESG Asia Credit Index, in terms of ESG and carbon intensity.
The fund will be managed by Alfred Mui, managing director and head of Asia fixed-income investment management, and Wilson Yip, associate director, fixed income at HSBC AM.
The new fund will invest in Asian companies that have good ESG practices, such as sustainable bonds, green bonds, sustainability-linked bonds, transition bonds, and social bonds, that result in lower carbon emissions.
The negative screening will be used to screen out corporations involved in destructive industries such as firearms, thermal coal, gambling, and tobacco, as well as issuers that violate the UN Global Compact Principles.
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