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HSBC AM launches sustainable development bank bonds ETF

Brings sustainable fixed income range to three

Lauren Gibbons

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HSBC Asset Management (HSBC AM) has expanded its sustainable fixed income range with the launch of a sustainable development bank bonds ETF.

The HSBC Sustainable Development Bank Bonds UCITS ETF (HDBA) is listed on the London Stock Exchange with a total expense ratio (TER) of 0.15%.

HDBA captures the FTSE World Broad Investment-Grade USD Multilateral Development Bank Bond Capped index which measures the performance of US Dollar-denominated debt issued by multilateral development banks.

The banks are selected from the FTSE World Broad Investment-Grade Bond index.

To qualify for the index the development bank must have all G7 countries as members.

The proceeds of the bonds must also support sustainable economic development in developing countries.

Issuers must have a minimum credit quality of BBB and are capped at 25% and the index is rebalanced monthly.

The launch adds to the asset manager’s two existing sustainable fixed income products, the HSBC Bloomberg Global Sustainable Aggregate 1-3 Year Bond UCITS ETF (HAGG) and the Global Sustainable Government Bond UCITS ETF (HSGU), which was converted from an index fund to an ETF in April 2023.

Elsewhere, HSBC AM closed four emerging market ETFs due to low assets under management in April.

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