HSBC Asset Management’s ETF business has grown to over USD16.5 billion in assets under management (AUM). This represents an increase of around 180 per cent over just two and a half years.
The milestone reflects the firm’s strategic focus on growing its ETF range, particularly in areas such as ESG, Asia, and fixed income.
HSBC Asset Management is now the ninth largest provider of ETFs in Europe and was the fastest growing of any of the top 12 providers in the region in 20203, seeing increases in AUM of 46 per cent. As of the end of May 2021, AUM has grown by 29 per cent since the start of the year to USD16.6 billion.
The growth of the ETF business has been accelerated through the launch of new strategies as the firm has tapped into increasing investor appetite for efficient access to popular investments.
Recent launches include thematic ETFs such as the Hang Seng Tech UCITS ETF in December 2020, the first ETF in Europe to track the Hang Seng Tech index, and a seven-strong range of sustainable equity products, which give investors access to a cost-efficient exposure to developed and emerging equity markets at global, regional and country levels.
Additionally, clients have focused on HSBC Asset Management’s experience and expertise in Asia, with strategies including the HSBC Asia Pacific ex Japan Sustainable Equity UCITS ETF.
Olga de Tapia, Global Head of ETF Sales at HSBC Asset Management, says: “Having withstood Covid-related market volatility, there is no slowing the popularity of ETFs and we are pleased to offer clients a broad range of innovative solutions. We look forward to continuing to grow the business as we further expand our offering and prioritise high-quality client service.”
The firm has made a number of strategic hires in its ETF business, adding specialised and dedicated resource to help with product innovation and ensuring consistently high-quality client servicing. Recent appointments include Jacqueline Pang as Head of ETF Sales Asia-Pacific, Dominic Clabby as Head of ETF Strategy in March 2021 and Bhaven Patel as Head of ETF Capital Markets in April 2021.
This growth also coincides with the firm hitting USD100 billion within its Passive & Systematic business (which ETFs form part of).
In 2020, HSBC Asset Management set out its strategy to re-position the business as a core solutions and specialist emerging markets, Asia and alternatives focused asset manager, with client centricity, investment excellence and sustainable investing as key enablers.