HSBC Asset Management announced the re-launch of its HSBC Opportunity Fund as the HSBC RadiantESG US Smaller Companies Fund, adding an ESG strategy to its small and mid cap-focused growth equity fund.

The revised fund will be subadvised by female-owned, ESG-focused independent asset management firm RadiantESG Global Investors. HSBC announced a minority investment in RadiantESG last year.

Stefano Michelagnoli, President of the HSBC Funds, commented:

“We are excited to be partnering with RadiantESG on this fund. We believe that their forward-looking approach anticipates the growing impact of ESG factors on longer-term corporate success and will benefit the fund and its shareholders.”

The fund invests in US small- and mid-cap companies, and will maintain the investment objective of seeking long-term growth of capital. RadiantESG will seek to identify and invest in companies with compelling fundamentals and ESG profiles, using proprietary models to evaluate the companies’ key fundamental characteristics and the influences of ESG criteria. The firm will utilize its data platform, ESG Mosaic, to capture investment opportunities across ESG Leaders, ESG Evolvers and leading UN SDG-aligned ‘Impact’ companies.

RadiantESG Co-Founder and Head of Investments and Sustainability, Kathryn McDonald said:

“RadiantESG is delighted to collaborate with HSBC on this fund. We currently see strong upside opportunity in the U.S. small- and mid-cap space associated with investing at the intersection of fundamental strength and ESG/impact. We believe that our more nuanced approach to ESG will improve the long-term investment outcomes for our clients.”

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