HSBC Asset Management is preparing to introduce ETF share classes for four sizable index funds providing exposure to mainstream bond markets.

The new listings will establish HSBC AM as one of the top ten largest fixed income ETF providers in Europe.

Expected to list on London Stock Exchange around 18 May 2023, the new ETF share classes will provide investors with liquid access to portfolios comprising government bonds, corporate bonds, sustainability-screened government bonds, and Chinese government bonds.

Collectively, the four index funds house around $4 billion in assets under management. The introduction of ETF share classes, which will absorb the funds’ existing AUM, will catapult HSBC AM’s total fixed income ETF AUM to around $6 billion, establishing the firm as one of the top ten largest fixed income ETF providers in Europe.

The four ETF share classes, along with the current AUM of the respective index funds, are as follows: the $1.6bn HSBC Global Government Bond UCITS ETF, $1.4bn HSBC Global Corporate Bond UCITS ETF, $950 million HSBC Global Sustainable Government Bond UCITS ETF, and $70m HSBC China Government Local Bond UCITS ETF.

The ETFs’ ticker codes and fees will be disclosed closer to the share classes’ listing date next month.

Marco Montanari, Global Head of ETF and Indexing Capability, HSBC Asset Management, said: “Ensuring investors have access to the investment structures that suit their needs is a clear priority for HSBC Asset Management. Our move to issue listed and unlisted share classes for these four index funds will provide additional flexibility to investors to build their portfolios. Whether it’s through economies of scale or the ability to trade freely in real-time, these new listed share classes put investor choice at the front and centre of our index offering.”

Olga de Tapia, Global Head of ETF & Indexing Sales, HSBC Asset Management, added: “Providing investors with ETF access to some of our biggest funds or those with a unique exposure is further evidence of our long-term commitment to the ETF market. These new share classes will help provide a more comprehensive suite of investment opportunities for clients seeking flexibility and scale.”