HSBC's corporate, investment banking and markets division has launched a range of investment products for institutional clients and third-party distributors linked to the newly-created HSBC Global Climate Change 100 Index and the HSBC GIF Climate Change Fund, which HSBC Investments plans to launch in the near future.
This Climate Change 100 Index is derived from the HSBC Global Climate Change Benchmark Index and contains 100 of the most liquid companies within the benchmark. The indices created by HSBC Global Research comprise companies adjudged best placed to profit from the challenges and physical effects of climate change. The stock selection is based on a quantitative methodology, and back-testing to 2004 has indicated outperformance of the MSCI World Index by around 80 per cent.
HSBC says that with 100 stocks, the Climate Change 100 Index represents an ideal underlying basis for investment funds and investors with strategic or thematic investment objectives.
The Ucits III-compliant GIF Climate Change Fund will seek to generate extra value using quantitative techniques and will be managed by Sinopia, the active quant specialist of the HSBC Group.
'Investors are recognising the importance of climate change and are showing interest in companies that seek to address its impact,' says Steven Phan, global head of structured fund products.
'We are very pleased to be able to offer investors the opportunity to include climate change in their investment portfolio through a range of innovative structured products linked to the Climate Change 100 Index and the GIF Climate Change Fund.'
HSBC's range of structured investment products linked to the index and the fund include tracker notes to give direct exposure, leveraged notes to generate the potential for enhanced returns, constant proportion portfolio insurance to deliver tailored risk/return profiles, and principal protected notes to provide security. Structured products are offered on the HSBC Investable Climate Change Index, Climate Change 100 Index and GIF Climate Change Fund.
HSBC Corporate, Investment Banking and Markets provides tailored financial products and services to government, corporate and institutional clients. Within its global banking and global markets business lines, the organisation is active in areas including foreign exchange, fixed income, equities, derivatives, risk advisory, corporate and investment banking, equity sales and trading, and equity and debt capital markets.