HSBC pins asset management growth on ETFs
New investment head Nicolas Moreau attempts to revive flagging fund arm
HSBC is planning an ambitious expansion of its exchange traded fund range in 2020 in a move to revitalise its underperforming $512bn asset management business.
Nicolas Moreau, who was appointed chief executive of HSBC’s asset management division in August, has devised a series of initiatives aimed at reinvigorating growth at a time when the London-listed bank is aggressively cutting costs.
In the first half of 2020, HSBC will launch eight ETFs employing environmental, social and governance metrics to tap into rising investor demand for ESG focused strategies.
“Combining our responsible investment and ETF expertise is a natural next step for us,” said Mr Moreau.
Assets in ESG-themed ETFs more than doubled in 2019 to a record $52.4bn at the end of November, according to ETFGI, a London-based consultancy.
HSBC also plans to develop a fixed income ETF platform in 2020 and to launch a range of precious metals tracker funds later in the year.
About 15 new roles will be created in the asset management division to support these initiatives at a time when the wider group plans to axe about 10,000 jobs globally in an effort to save costs.
Three senior roles have been created to bolster the team working under Mr Moreau. Brian Heyworth moved to global head of institutional business from his role as global head of client strategy.
Christophe de Backer, a director on the boards of the asset management and private banking divisions, has been named global head of wholesale business and partnerships.
Edmund Stokes assumed the responsibility of global chief operating officer after moving from his position as global head of product.
“These newly created roles will prove invaluable in delivering our growth plans,” said Mr Moreau.