HSBC Asset Management Expands ‘Islamic’ Offerings

Share

Share

HSBC Asset Management has expanded its Shariah-compliant range with the launch of Japan ESG (environmental, social and governance) and real estate ETFs, ETF Stream can reveal.

The HSBC MSCI Japan Islamic ESG UCITS ETF (HIJP) and the HSBC FTSE EPRA Nareit Developed Islamic UCITS ETF (HINS) are listed on the London Stock Exchange with a total expense ratios of 0.30% and 0.35%, respectively.

HIJP tracks the MSCI Japan Islamic ESG Universal Screened Select index, which offers exposure to 44 large- and mid-cap Japanese companies reflecting Shariah investment principles.

ETFs With Shariah Exclusions

The index applies Shariah exclusions for companies involved in alcohol, gambling and pork-related products as well as climate-based exclusions. Screens are also applied screens based on financial ratios derived from total assets.

The resulting benchmark excludes the financials sector while awarding 29.6%, 23.8% and 20% weights to the industrials, information-technology and consumer-discretionary sectors, respectively.

HINS tracks the FTSE EPRA Nareit IdealRatings Developed Islamic index of Shariah compliant-listed real estate companies and real estate investment trusts in developed markets.

The starting universe is the FTSE EPRA Nareit Global Developed index built in partnership with the European Public Real Estate Association and the National Association of Real Estate Investment Trusts, which is then screened quarterly for Shariah compliance by IdealRatings for business and financial activities.

“These products look to service part of the population which invests according to a faith-based philosophy and there are currently very few instruments adhering to these values,” Olga de Tapia, global head of ETF and indexing sales at HSBC Asset Managementtold ETF Stream.

“Until these ETFs, Japan and EPRA NAREIT were not covered at all in the passive space. We saw a gap and we are trying to provide access to all the building blocks for faith-based investors to construct their portfolios as they choose,” she said. “The target audience differs between country but in the U.K., France, Switzerland and Benelux, there is demand from pension schemes, wealth managers and family offices.”

ETFs Follow Sukuk Funds

The new products come as HSBC Asset Management builds out its Shariah-compliant line of products. The firm launched Europe’s first global sukuk ETF earlier in September.

Last November, ETF Stream revealed the firm had unveiled five Shariah-compliant ESG ETFs targeting different geographical exposures.

Share

Latest

Related Content

Edmund Shing, PhD

Global Chief Investment Officer
BNP Paribas Wealth Management

Edmund has over 29 years of experience in financial markets in a wide variety of positions, ranging from proprietary trading to portfolio manager in a number of financial institutions in London and Paris.  He previously held the role of Global Head of Equity and Derivative Strategy at BNP Paribas in London from 2015 to 2020, and has been Chief Investment Officer at BNP Paribas Wealth Management since November 2020.

Edmund is responsible for piloting our investment strategy and will continues to rollout out recommendations and themes with actionable advice that brings our expertise to our clients and support to our client-facing teams.  In this time of change, his expertise in following and anticipating markets is a true value added for both our customers and those at Wealth Management who serve them.

Edmund has a PhD in Cognitive and Computing Science from the University of Birmingham in the United Kingdom, and has done advanced studies in Knowledge-Based Systems and in Experimental Psychology.  He is an EFFAS-certified financial analyst. He has also authored the book “The Idle Investor” published by Harriman House in 2015, proposing 3 simple investment strategies that take only a few minutes to execute per month.

Media Kit

    Data Protection

    The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

    The Digital Banker Summit

    Moving on from FTX: is 2023 the year of CBDCs?

    Indonesia, Jakarta

    Thailand, Bangkok

    Philippines, Manila

    Contact Us

      Data Protection

      The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

      Request Nomination Pack

      Error: Contact form not found.

      The world’s preeminent Private Banks and Wealth Managers are demonstrating a committed drive in innovation, advisory, new products and services to meet the sophisticated needs of their clients.

      COVID-19
      Amid economic activity revival on the back of the Covid-19 vaccine program, organisations moving from business continuity plans to stable working environments, together with the slightest improvement in unemployment numbers, forced the world to adjust to new realities. Coming to terms with the “new normal”, global investors are now on the look-out for attractive and stable investment opportunities.

      Needs of Private Wealth customers and families worldwide have drastically changed due to the pandemic and banks have had to accelerate efforts to deploy a multi-channel service strategy and safeguard clients’ businesses and wealth against negative impacts of economic uncertainly.

      The Global Private Banking Innovation Awards will recognise the world’s best private banks, wealth managers and asset managers that are championing innovation across advisory, service, products, customer experience and more.

      Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. 

      Request Nomination Pack

      Error: Contact form not found.