HSBC Asset Management (HSBC AM) has added money market funds to its $47m global climate tech ETF to have “greater flexibility” of cash management.
The HSBC NASDAQ Global Climate Tech UCITS ETF (HNCT) will see its cash allocations switched to money market funds as opposed to bank deposits.
In a shareholder notice, the firm said: “The reason for this change is to provide the investment manager with greater flexibility in terms of the cash management tools available to it.
It added money market funds can provide “superior rates, better preserve value and offer operational efficiencies compared to allocating cash to bank deposits.”
Currently, UCITS funds have a 10% cap on investments in money market instruments.
HNCT physically replicates the NASDAQ CTA Global Climate Technology index which captures 129 companies involved in global climate technology industry.
As at 31 August, the HNCT has a 0.89% weighting to cash, with the ETF’s top three holdings being Tesla (5.3%), Schneider Electric (4.5%) and Deere and Co (4.6%).
HSBC AM also made headlines in May after launching four ETF shares classes of its $12bn global aggregate bond ETF.
