Enables investors to capitalise on opportunities arising in technology with major growth potential
HSBC Amanah has launched a structured product for individual investors in Malaysia seeking exposure to opportunities arising in technology with some degree of protection on their investment.
The product tracks the Morningstar Exponential Technologies ESG Screened Target Volatility 7% Select Index (“the Index”).
Two degrees of protection are offered by the product: (1) 100% of the investment amount is protected if the product is held to maturity; and (2) the Index has a 7% volatility control target, with the aim of maintaining price stability during volatile market periods.
The product provides diversified exposure to companies benefiting from innovative technologies with exponential growth potential.
These companies are not limited to the likes of FAANG (acronym for Facebook, Amazon, Apple, Netflix, Google) names only but can be the users and suppliers of technology across various sectors such as healthcare, finance, transportation, IT, etc.
HSBC’s collaboration with Morningstar is a reflection of the bank’s ambition and commitment to scale up its wealth franchise in Asia, with Malaysia playing a key role in achieving this ambition.
Through this partnership, HSBC’s wealth clients in the country will be able to draw on Morningstar’s product expertise, being a household name in the investment community. Morningstar provides data and research insights on a wide range of investment offerings and has more than 125 analysts covering 1500 stocks globally.
“HSBC’s ability to partner with various established Index providers such as Morningstar to provide our retail and institutional clients in Malaysia access to customised innovative products, will enable them to stay connected to the latest global thematic investing trends. Looking ahead, we will continue to make considerable investments in offerings that contribute to our suite of investment strategies while addressing the needs of our wealth clients”, says Alvin Kong, Head of Markets and Securities Services, HSBC Malaysia.
The Index focuses on nine key exponential technology themes below:
Big Data & Analytics
Next Generation Transportation
ESG research, ratings and data firm Morningstar Sustainalytics then applies an ESG rating to each one of the tech companies chosen per theme, and Morningstar Indexes screen out companies that are deemed severe risk or non-compliant with the Ten Principles of the UN Global Compact.
“At HSBC, technology and sustainability are close to our heart and we know they are for our clients too, particularly with these themes having an impact on our daily life. We believe our wealth clients will like this Index given its good track record since the main Morningstar Exponential Technology Index went live in 2014, proving its ability to keep pace with the evolving nature of the theme. Offering this capability reinforces our focus on bringing our clients compelling and differentiated solutions critical to both protecting and growing their wealth”, says Jon Chivers, Head of Wealth, Wealth and Personal Banking, HSBC Malaysia.
HSBC Group is the exclusive licensee of the Index. Aside from Malaysia, HSBC Group has also launched similar structured products tracking the Index in Mainland China. This will be followed by offering the solution in other markets globally.