HSBC Asset Management (HSBC AM) announced today the launch of the HSBC Sterling ESG Liquidity fund, an ESG-focused money market fund aimed at helping institutional investors meet their sustainability goals through their liquidity investments.

The HSBC Sterling ESG Liquidity fund, which has received a seed investment from British retailer Tesco, will invest in a portfolio of issuers with the highest short-term ratings – A1/P1/F1 – or long-term equivalent, and are stronger at addressing ESG risks than other issuers in the investable universe. To achieve this, the fund will apply an ESG scoring system and relative ESG filters that are appropriate for the money market investable universe.

HSBC AM stated that issuer engagement will also be a key component of the fund’s approach. To meet sustainability targets, the company will be encouraging issuers to address identified shortcomings in how they manage ESG risks. By doing so, the company aims to increase the focus on ESG management of risks and achieve sustainable outcomes.

Jonathan Curry, Global Liquidity & Americas CIO, HSBC AM said:

“We are committed to delivering market-leading solutions to meet the responsible investment ambitions of our clients. For corporate treasurers, the use of a money market fund that credibly applies ESG to its investment process can contribute to the company’s overall sustainability objectives. For individual or institutional investors with a specific focus on sustainable investing, cash no longer needs to be an afterthought in a sustainably invested portfolio.”

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