The launch builds on HSBC AM’s move in 2023 to provide investors with access to both listed and unlisted share classes within a single fund¹. Marking the first time an asset manager in Europe has launched ETF share classes within existing EU-regulated Money Market Funds (MMFs).

The newly launched ETF share classes aim to provide investors with access to the security of capital and daily liquidity, along with a potential investment return comparable to standard money-market interest rates, by actively managing credit, liquidity and interest-rate risks.

In addition, they aim to allow investors to access large triple-A-rated money-market funds through ETF share classes, benefiting from HSBC AM’s long-standing expertise within the liquidity space, with its first funds launched in 1999.

These ETF share classes are also expected to be the first ETFs in Europe that qualify as Low Volatility Net Asset Value (LVNAV) Money Market Funds under the strict requirements of the EU MMF Regulation.

Investor appetite for accessible, low-risk cash-management solutions continues to grow, particularly among institutional allocators seeking flexibility and transparency. The ETF share classes sit within UCITS funds classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR). They are primarily aimed at wholesale and institutional investors, including fund of funds, private banks, pension funds, insurance companies and family offices, who require efficient, flexible and transparent cash-management solutions within their portfolios.

They will be registered and available to wholesale and institutional investors across key European markets, including the UK, Germany, Italy, France, Ireland and Luxembourg, and listed on the London Stock Exchange, Borsa Italiana and Xetra.

HSBC AM manages over USD 170 billion in liquidity assets across 10 currencies globally, providing investors with access to well-established, actively managed money-market solutions built on more than 30 years of experience.

Olga De Tapia, Global Head of ETF & Indexing Sales at HSBC Asset Management, said: “As investors increasingly look for greater opportunities in cash and ultra-short-term duration solutions, we are pleased to launch ETF share classes of our existing liquidity funds. This aims to provide investors with more choice and access to our longstanding expertise in the liquidity space through the simplicity of a UCITS ETF wrapper.”

Jonathan Curry, Global CIO, Liquidity, at HSBC Asset Management, said: “Building on our robust, well-established active investment process and experience managing money market funds through numerous market cycles, these new launches are designed to give investors peace of mind when looking for a tool to manage their cash and help them deliver on their objectives of preservation of capital and provision of liquidity. This launch reflects our continued commitment to innovation in liquidity management and to broadening investor access to money-market solutions through listed formats.”