HSBC AM Launch Sustainable Healthcare Fund

October 20, 2021 | 0 Comments

HSBC Asset Management [HSBC AM] has announced the launch of the HSBC GIF Global Equity Sustainable Healthcare Fund, the firm’s “first healthcare fund focused on sustainability and impact.”

A spokesperson said, “One of the main sustainability related challenges facing the healthcare sector today is cost. As medical costs continue to grow, a number of people find it challenging to access the type of healthcare that they need.

“The Fund, which is aligned with the United Nation Sustainable Development Goal 3, Good Health & Wellbeing, aims to address this challenge and drive social impact without sacrificing on performance.

“As healthcare spending consistently outpaces GDP growth across markets, rising costs are straining healthcare systems globally resulting in access restrictions. In 2018, global spending on healthcare reached USD 8.3 trillion, or 10% of global GDP1. In the US, which accounts for nearly half [42%] of global healthcare expenditure, total spend is projected to increase by over 50% in the next eight years alone2.

“In our opinion, investing in companies that focus on healthcare innovation can reduce the overall cost for all stakeholders in the system. Companies that create new treatments, devices, diagnostics, digital-health and services can all contribute towards achieving this.

“In 2020, HSBC Asset Management set out its strategy to shape the market for sustainable investing through leadership in policy and industry engagement, company engagement and the development of new products and solutions. By continuing to embed Environmental, Social, Governance, aka ESG3 across its investment approach, the firm is supporting the transition overall and in climate critical sectors, while creating innovative investment solutions to meet client investment and sustainability goals.”

Faith Outerbridge – HSBC Bermuda’s Head of Asset Management said, “I believe that eventually all investments will have some sort of ESG overlay. Data has shown that including ESG factors into our investment analysis adds value, and investing in firms that are sustainably conscious and are working on improving their ESG scores, means that they will perform better over the long-term.

“The Sustainable Healthcare Fund joins HSBC’s growing suite of sustainable investment funds available to both institutional and retail clients. Currently on offer locally are the Lower Carbon Bond and Equity Funds and the Equity Climate Change Fund.”

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