HSBC Asset Management (HSBC AM) has launched the HSBC RadiantESG US Smaller Companies Fund. RadiantESG Global Investors1 will take over as the new sub-advisor for the fund which will replace the current HSBC Opportunity Fund — a small- and mid-cap growth fund.
The HSBC RadiantESG U.S. Smaller Companies Fund will maintain the investment objective of seeking long-term growth of capital and will continue to invest in US small- and mid-cap companies. Additionally, RadiantESG will seek to identify and invest in companies with compelling fundamentals and attractive environmental, social and governmental (ESG) profiles. The Fund's benchmark, the Russell 2500® Growth Index,2 will remain the same.
The principal investment strategy will include the use of proprietary models to evaluate companies along key fundamental characteristics as well as analyze the influences of ESG criteria on the companies in which the fund invests, aiming to improve long-term risk-adjusted returns.
RadiantESG’s differentiated approach to ESG analysis leverages its proprietary ESG MosaicTM data platform to capture investment opportunities across ESG Leaders, ESG Evolvers and leading UN SDG-aligned3 ‘Impact’ companies.
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.”
Kathryn McDonald, RadiantESG’s Co-Founder and Head of Investments and Sustainability, 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.”
RadiantESG a women-led and majority-diverse-employee owned investment manager, integrates a comprehensive set of ESG and impact criteria (and their evolution) into its systematic investment processes. The RadiantESG investment team brings over sixty years of collective experience investing in large- and small-cap equities across U.S., global and emerging markets.
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Notes to investors
Investors should consider the investment objectives, risks, charges, and expenses of the investment company carefully before investing. The prospectus contains this and other important information about the investment company and it can be obtained by calling 1-800-782-8183 or visiting https://www.assetmanagement.us.hsbc.com/en/individual-investor/fund-centre.
Investors should read the prospectus carefully before investing or sending money.
The incorporation of ESG criteria, including ESG and Impact scores and the identification of controversial business line and other screens, into the investment process will cause the Fund to forgo investment opportunities available to other mutual funds that do not use these criteria, or to increase or decrease its exposure to certain sectors or certain types of companies. The Subadviser employs proprietary quantitative models in selecting investments for the Fund. Investments selected using these models may perform differently than expected and there are limitations inherent in every quantitative model. The Fund invests in smaller companies, which involve additional risks such as limited liquidity and greater volatility than large cap companies.
Distributed by Foreside Distribution Services, L.P.
This press release is for information only and does not constitute investment advice, a solicitation or a recommendation to buy, sell or subscribe to any investment. It is not intended to provide and should not be relied upon for accounting, legal or tax advice.
This document is not intended for distribution to or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation.
The views expressed were held at the time of preparation and are subject to change without notice. Forecasts, projections or targets are indicative only and are not guaranteed in any way. HSBC Asset Management accepts no liability for any failure to meet such forecasts, projections or targets. The value of investments may go down as well as up and you may not get back the amount originally invested. Portfolios may be subject to certain additional risks, which should be considered carefully along with their investment objectives and fees.
HSBC Asset Management
HSBC Asset Management, the investment management business of the HSBC Group, invests on behalf of HSBC’s worldwide customer base of retail and private clients, intermediaries, corporates and institutions through both segregated accounts and pooled funds. HSBC Asset Management connects clients to investment opportunities around the world through an international network of offices in 24 countries and territories, delivering global capabilities with local market insight. As of 31 March 2022, HSBC Asset Management managed assets totaling US$618bn on behalf of its clients. For more information, see assetmanagement.us.hsbc.com/
HSBC Asset Management is the brand name for the asset management businesses of HSBC Group. HSBC Asset Management (USA) Inc. is an investment adviser registered with the US Securities and Exchange Commission. HSBC Asset Management (USA) Inc. serves as the investment adviser to the HSBC Funds. RadiantESG is the sub-adviser and is paid a fee for its services. Foreside Distribution Services, L.P., member FINRA, is the distributor of the HSBC Funds and is not affiliated with the adviser. HSBC Securities (USA) Inc., member NYSE, FINRA and SIPC, is a sub-distributor of the HSBC Funds. Affiliates of HSBC Asset Management (USA) Inc. may receive fees for providing various services to the funds.
The HSBC Group
HSBC Holdings plc
HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 64 countries and territories in its geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of US$3,022bn at 31 March 2022, HSBC is one of the world’s largest banking and financial services organizations.
RadiantESG Global Investment Managers
United in the belief that ESG considerations and D&I have positive economic implications, and the power to drive innovation and change in societies around the world, industry veterans Heidi Ridley and Kathryn McDonald co-founded RadiantESG Global Investors, a women-led, diverse-owned investment firm focused on next-generation ESG investment solutions for institutional and wealth management clients globally.
The co-founders have a combined 50+ years of experience in asset management, with two decades spent in a variety of research and investment, product development, client relationship management and business development, and operational and executive roles at Rosenberg Equities, a pioneer in quantitative investing. The investment, data and technology professionals who make up the team at RadiantESG Global Investors have strong pedigrees and a unique diversity profile.
RadiantESG’s investment solutions are informed by its proprietary ‘Positive Change’ concept of ESG which captures ESG Leaders, ESG Evolvers and UNSDG-aligned companies. The strategies will aim to address shifts in demographics and growing demand for more sustainable investment solutions.
The firm, which launched with the backing of HSBC Asset Management, will maintain majority ownership, independence and autonomy in executing on its ambition to pave the way toward a brighter future, embracing ESG considerations as a necessity in building sustainable investment portfolios; at the same time, carving a path for women and minorities for generations to come.
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In July 2021, HSBC AM announced that it would take a minority stake in RadiantESG, a women-led and majority diverse-employee-owned investment manager co-founded by Heidi Ridley and Kathryn McDonald, formerly of Rosenberg Equities. |
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The Russell 2500 TM Growth Index measures the performance of the small-to-mid-cap growth segment of the US equity universe. It includes those Russell 2500 companies with relatively higher price-to-book ratios, higher forecast for medium-term (2-year) growth (through I/B/E/S) and higher sales per share historical growth (5-years). |
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The UN SDGs are the Sustainable Development Goals (SDGs) adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity. There are 17 SDGs that are integrated for balancing social, economic and environmental sustainability issues. |
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Contacts
Media enquiries to:
Jack Mullin - jack.f.mullin@us.hsbc.com
