HSBC Asset Management (HSBC AM) has expanded its sustainable fixed income range with the launch of two ETFs capturing low carbon Eurozone government bonds.
The HSBC Euro Lower Carbon Government 1-3 Year Bond UCITS ETF and the Euro Lower Carbon Government 10+ Year Bond UCITS ETF will be listed on the Borsa Italiana and the Deutsche Borse in the “coming weeks”.
The HSBC Euro Lower Carbon Government 1-3 Year Bond UCITS ETF tracks the Bloomberg Euro Treasury 1-3 Year Carbon Tilted index which offers exposure to fixed-rate, investment-grade sovereign bonds with maturities between one and three years from EU countries, adjusting country weights based on CO2 per capita scores.
The Euro Lower Carbon Government 10+ Year Bond UCITS ETF follows an identical methodology with longer dated maturities.
Both ETFs are classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).
Olga De Tapia (pictured), global head of ETF and indexing sales at HSBC Asset Management, said: “We are pleased to expand our Fixed Income ETF and Index fund range to provide investors with a compelling opportunity to gain exposure to parts of the European government bond market with a lower carbon footprint.
“The new funds aim to not only enable investors to take advantage of evolving fixed income market dynamics, as central banks across developed economies begin to lower interest rates, but also support the transition to a lower carbon economy.”
Elsewhere, HSBC Asset Management launched four ETF shares classes of its $12bn global aggregate bond ETF in May.
