HSBC Asset Management delivers exchange-traded funds (ETFs) to investors, giving them access to its portfolio manager’s excellence via easily traded and low-cost products. It has achieved enormous success, growing its ETF assets under management (AUM) from US$5.9 billion at the end of 2018 to US$18.2 billion in AUM year-to-date, an increase of 208%. HSBC AM were the fastest growing European ETF providers amongst the top 12 in 2020. Simultaneously, HSBC AM’s Passive & Systematic Equity business, which ETFs are part of, hit US$100 billion on 31 May 2021.
Behind the scenes, a new approach helped to direct this expansion. In 2019 HSBC Asset Management redefined its strategy to provide investors with more targeted investment opportunities. The investment manager, which has a total US$621 billion in AUM across all funds, in 20+ countries and territories, is focusing its activities as a specialised asset manager that delivers well-crafted solutions to clients.
Nicolas Moreau, CEO HSBC Asset Management, says that in doing so it has built on its core strengths in emerging markets and alternative investments.
To hear from Nicolas Moreau on the role of ETFs within HSBC AM click here.
Investors can now leverage HSBC AM’s considerable skill sets in delivering investment performance, its deep understanding of client needs and sustainability knowledge to access a range of ETFs that truly express their ambitions.
HSBC AM’s goal is to support the long-term views of the environmental, social and governance (ESG) investor by delivering gateways to returns through well-targeted, regulated ETFs that are easy to use but tap areas of the market that investors can otherwise struggle to reach, explains Olga De Tapia, Global Head of ETF Sales at HSBC Asset Management.
To hear from Olga De Tapia on the three key areas of ETF development click here.
The ETF business is one of HSBC AM’s main growth initiatives and has the complete focus and commitment of the firm’s management team. The ambitious growth targets set for the ETF business has been matched through allocating business resources to facilitate this growth.
The firm has brought on board around twenty specialised ETF resources across various parts of the ETF business over the past year and a half and has begun the expansion strategy by building out the ETF product offering into the sustainable space in the first instance.
To hear from Nicolas Moreau on HSBC’s specialist role click here.
One of the biggest growth opportunities for the ETF business is in providing clients with bespoke portfolio solutions – particularly in the sustainable and alternatives space.
Thorsten Michalik, Global Head of Wholesale at HSBC Asset Management says that HSBC’s ETF user base is very broad and increasingly mature.
To hear from Thorsten Michalik on retail investment use click here.
HSBC has also seen reports demonstrating the use of ETFs by sovereign wealth funds (SWFs) and increasing adoption in the private banking space. This versatility supports the decision of HSBC to enter the ETF market, and its potential to scale up the business.
To hear from Thorsten Michalik on institutional use click here.
The existing level of ESG investment and its expected growth also give clear guidance to both investors and ETF issuers like HSBC.
To hear from Thorsten Michalik on ESG investment click here
A recent Morningstar report identified around 150 different investment themes, outlining the scope of opportunity for HSBC AM product development in areas with strong investor appetite, such as Asian High Yield, which might better be accessed via an ETF solution.
To hear from Olga De Tapia on thematic investment click here.
The Asian market has a huge scope to expand, and the insight HSBC has in this space will help to guide fund investors as they increase their exposure to the region.
To hear from Olga De Tapia on the Asian opportunity click here.
To deliver a wider range of funds to investors immediately, the asset manager has also signed an agreement to distribute Hang Seng’s ETFs, which will help both institutional and retail segments.
To hear from Thorsten Michalik on distribution click here.