HSBC Launches Climate Change Investment Indices
HSBC Corporate, Investment Banking and Markets announced this week the launch of several indices to help investors track the stock market performance of companies that could profit from climate change challenges.
HSBC Corporate, Investment Banking and Markets announced this week the launch of several indices to help investors track the stock market performance of companies that could profit from climate change challenges.
The HSBC Climate Change Index can be tracked back to 2004. Since then, it has outperformed the MSCI World Index by roughly 70 percent, the company said.
It joins three additional sub indices: the HSBC Low Carbon Energy Production Index, which includes solar, wind, biofuels and geothermal generation; the HSBC Energy Efficiency and Energy Management Index, which will measure fuel efficient autos, solutions and fuel cells; and HSBC Water, Waste and Pollution Control Index, which will track water recycling, waste technologies and environmental pollution control.
The indices can be used to create portfolios for hedge funds, exchange traded funds, discretionary funds and structured products. HSBC identified some 300 companies that are well positioned to gain from climate change challenges for the indices.
"What makes this different and exciting is the index structure which captures a highly diverse number of investment themes with very attractive risk return characteristics," said Joaquim de Lima, HSBC's global head of quant research for equities. "The construction and stock selection of the indices is based purely on quantitative criteria such as value generation and liquidity and these factors will be regularly reviewed."
HSBC created the indices in response to shifting investor sentiment in global markets.
"In developing tailored climate change indices we are providing real investment solutions which enable our clients to incorporate climate change into their investment decisions," said Stephen Green, Group Chairman of HSBC Holdings.
The HSBC Climate Change Index can be tracked back to 2004. Since then, it has outperformed the MSCI World Index by roughly 70 percent, the company said.
It joins three additional sub indices: the HSBC Low Carbon Energy Production Index, which includes solar, wind, biofuels and geothermal generation; the HSBC Energy Efficiency and Energy Management Index, which will measure fuel efficient autos, solutions and fuel cells; and HSBC Water, Waste and Pollution Control Index, which will track water recycling, waste technologies and environmental pollution control.
The indices can be used to create portfolios for hedge funds, exchange traded funds, discretionary funds and structured products. HSBC identified some 300 companies that are well positioned to gain from climate change challenges for the indices.
"What makes this different and exciting is the index structure which captures a highly diverse number of investment themes with very attractive risk return characteristics," said Joaquim de Lima, HSBC's global head of quant research for equities. "The construction and stock selection of the indices is based purely on quantitative criteria such as value generation and liquidity and these factors will be regularly reviewed."
HSBC created the indices in response to shifting investor sentiment in global markets.
"In developing tailored climate change indices we are providing real investment solutions which enable our clients to incorporate climate change into their investment decisions," said Stephen Green, Group Chairman of HSBC Holdings.
