Posted inRegulationNewsESG

SFC reveals approved ESG funds

The regulator has listed mutual funds that meet new ESG disclosure requirements aimed at countering greenwashing.
Adult Bald Eagle is perched in Pine Tree limb under a clearf blue sky

The list, which was posted on the Hong Kong regulator’s website in late December, includes 21 SFC-authorised funds (see below) that fulfill the requirements on how firms should disclose information on green or ESG funds.

These disclosure requirements include the fund’s key investment focus, ESG analysis and evaluation methodologies and what the firm believes to be relevant “green” (green bonds) or ESG criteria.

In addition, at least 70% of a fund’s assets should be invested in securities or other instruments reflecting the ESG-related investment focus.

The requirements were set out by the regulator in April last year, in a move to combat greenwashing.

“Although most funds [evaluated] have named the green or ESG factors in their investment objective or strategy, a majority of these funds do not specifically disclose how the management companies incorporate such green or ESG factors in their investment selection process,” the SFC said at the time.

The regulator, however, noted on its website that although the list includes funds that have fulfilled disclosure requirements, the list does not constitute an “official recommendation” of the products or guarantee their green or ESG attributes or related performance.

“The SFC has not independently verified the effectiveness of the investment strategies, investment selection process, investment portfolios and management or the criteria used to achieve the stated green or ESG investment focuses adopted by these products.”

The firm with the most funds on the list is Allianz Global Investors, with five ESG or green funds, followed by Allianz GI are BNP Paribas Asset Management and HSBC Global Asset Management.

Funds passing the SFC’s ESG disclosure filter

Alliance Bernstein Sustainable US Thematic Portfolio
Sustainable Global Thematic Portfolio
Allianz Global Investors Allianz Emerging Markets SRI Bond
Allianz Emerging Markets SRI Corporate Bond
Allianz Global Credit SRI
Allianz Global Sustainability
Allianz Green Bond
Amundi Amundi HK – Green Planet Fund
BNP Paribas Asset Management BNP Paribas Funds Aqua
BNP Paribas Funds Global Environment
BNP Paribas Funds Green Tigers
Blackrock ESG Multi-Asset Fund
Sustainable Energy Fund
Fidelity Fidelity Funds – Sustainable Strategic Bond Fund
HSBC Global Asset Management Global Equity Climate Change
Global Lower Carbon Bond
Global Lower Carbon Equity
Janus Henderson Horizon Fund – Global Sustainable Equity Fund
Jupiter Asset Management Jupiter Global Ecology Growth
Schroders Global Climate Change Equity
Global Sustainable Growth
Source: Securities and Futures Commission. Last updated: 27 December 2019



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