Industry Updates

HSBC AM receives regulatory approval from CBI to create ETF share classes

The first Irish-domiciled funds to offer both ETF and unlisted shares

Theo Andrew

Olga De Tapia

HSBC Asset Management has become the first asset manager to offer ETF and unlisted shares within an Ireland-domiciled fund after it converted four global bond index funds to ETFs.

The four index funds will be renamed ETFs, as per the regulatory requirements from the Central Bank of Ireland (CBI).

The conversions will add $6bn assets under management (AUM) to its fixed income ETF range, making it a top 10 bond issuer in Europe.

The four new ETFs are:

  • HSBC AM Global Government Bond UCITS ETF

  • HSBC AM Global Corporate Bond UCITS ETF

  • HSBC AM Global Sustainable Government Bond UCITS ETF

  • HSBC AM China Government Local Bond UCITS ETF

The UK asset manager added the move was to meet growing investor demand for flexibility, offering listed and unlisted share classes through a single fund in a bid to increase “investor choice”.

It means investors with a preference for ETFs can access funds with large AUM. The move will take the asset manager’s total ETF AUM to over $26bn in Europe.

HSBC AM said the total expense ratio (TERs) of the ETFs would be disclosed following the changes.

Marco Montanari, global head of ETF and indexing capability at HSBC AM, said: “Whether it is through economies of scale or the ability to trade freely in real-time, these new listed share classes put investor choice at the front and centre of our index offering.”

Olga de Tapia (pictured), global head of ETF and indexing sales at HSBC AM, added: “Providing investors with ETF access to some of our biggest funds or those with a unique exposure is further evidence of our long-term commitment to the ETF market.

“These new share classes will help provide a more comprehensive suite of investment opportunities for clients seeking flexibility and scale.”

The firm expects fixed income ETF AUM to more than double over the next five years, from $366bn at the end of March to $750bn in 2028.

Featured in this article


No ETFs to show.