HSBC AM announces that its ETF and Indexing business has surpassed $100 billion in AUM
21 MAY, 2024
By Jose Luis Palmer from RankiaPro Europe
HSBC Asset Management (HSBC AM) has achieved a significant milestone, with its ETF and Index business surpassing $100 billion in assets under management (AUM). This rapid expansion, a 181% increase from $36 billion at the end of 2019, underscores the firm's successful repositioning under CEO Nicolas Moreau's leadership.
Growth in ETF Assets
HSBC AM's ETF assets have experienced substantial growth, quadrupling from $8.8 billion at the end of 2019 to more than $37 billion by the end of March 2024. This growth rate has significantly outpaced the broader European ETF market, which has doubled over the same period. One of the firm's standout performers is the MSCI World ETF, now valued at $9.6 billion and ranked among the top performers in its category.
This growth trajectory has also seen HSBC AM's UCITS ETF business climb industry rankings, moving from 12th place by AUM at the end of 2019 to 8th place, according to ETFBook. The firm's ability to develop a broad range of passive products, minimize tracking error, and reduce costs for investors has been key to this success.
Growth in Index Funds
Similarly, HSBC AM's Index funds have more than doubled in AUM, rising from $27 billion at the end of 2019 to over $63 billion by the end of March 2024. This growth rate outstrips the broader European Index fund market, which has grown by a third over the same period according to Morningstar data.
Notably, HSBC AM now manages the largest Global Bond Fund in the market, valued at $11.7 billion. Its Global Islamic Equity Strategy has also seen impressive growth, quintupling in size to $5.5 billion in AUM. The firm now offers a range of nine Islamic funds in different passive wrappers, providing clients with a variety of investment options.
Strategic Focus and Team Expansion
The impressive growth in HSBC AM's ETF and Index business is attributed to a strategic focus on developing a diverse range of passive products and maintaining excellence in client service. The firm has also expanded its ETF and Indexing team, enhancing capabilities in sales, investments, products, and operations.
HSBC AM's UK-domiciled Index fund assets have more than doubled, reaching over $43 billion in AUM since the end of 2019. The American Index Fund, in particular, has grown to over $17.8 billion in AUM, reflecting the firm's ability to attract significant investment through its strategic initiatives.
In summary, HSBC AM's remarkable growth in its ETF and Index business, driven by strategic product development and enhanced client service, positions the firm as a leading player in the passive investment space. The firm’s continued focus on innovation and expansion suggests sustained success in the years ahead.
