HSBC launches Sustainability Leaders Fund

29 June 2006

HSBC Investments has launched the 'HSBC GIF Sustainability Leaders Fund', an innovative investment fund focusing on European multinational companies that HSBC considers to be leaders in sustainable development. The fund has been developed with LEAD (Leadership for Environment and Development), an international not-for-profit organisation focused on leadership and sustainable development.

Stephen Green, Group Chairman, HSBC Holdings plc, said: "Sustainability matters because the societies we operate in tell us it matters. We believe it is complementary with profit, and for this reason sustainability is part of our growth strategy and our brand. If we are to succeed, we need to incorporate sustainable development into how we provide financial services to our clients. The HSBC GIF Sustainability Leaders Fund marks another step on this journey."

The fund is made up of a portfolio of around 40 companies of varying size, mainly larger companies, each selected by using a 'best-in-class' approach. Tobacco and arms-related companies are systematically excluded. Investment in smaller European companies will focus on those that are developing innovative new technologies and processes to support sustainable development.

The objective of the fund is to provide consistently strong returns in the long term, offering a unique opportunity to invest in companies with exemplary environmental and social practices within a mainstream equity framework.

Investors in the fund also directly support the work of LEAD, which receives a donation from a portion of the management fees charged by HSBC. LEAD will use the funds raised to support training programmes to develop leaders worldwide who can mobilise others to make a real difference to sustainability.

"LEAD has partnered with HSBC to develop the Sustainability Leaders Fund because we have a shared commitment to sustainable development and strong leadership," said Dr Simon Lyster, Executive Director of LEAD International. "The fund will reward businesses that are serious about social and environmental issues. It will also provide LEAD with much needed resources to train more of tomorrow's leaders around the world to promote sustainable development".

The HSBC GIF Sustainability Leaders Fund is managed by HSBC's highly experienced Paris-based Socially Responsible Investment (SRI) team. The SRI analysts consider each company through detailed qualitative and quantitative research as well as through rigorous one-to-one company meetings. The fund manager then selects companies from the reduced SRI universe based strictly on financial criteria, by comparing their ability to create economic performance with their stock market valuation.

HSBC has also recently adopted the United Nations Principles for Responsible Investment, which provides a voluntary framework for investors to incorporate environmental, social and corporate governance issues into mainstream investment decision-making.

Media enquiries to Nhan Chiem on 020 7991 0639 or at nhanchiem@hsbc.com

HSBC Holdings plc
HSBC Holdings plc serves over 125 million customers worldwide through some 9,500 offices in 76 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With assets of US$1,502 billion at 31 December 2005, HSBC is one of the world's largest banking and financial services organisations. HSBC is marketed worldwide as 'the world's local bank'. It was recently named FT Sustainable Bank of the Year in recognition of its leadership in merging social, environmental and business objectives.

HSBC Investments
HSBC Investments is the global investment solutions business of the HSBC Group. HSBC Investments aims to be an expert in the development and delivery of a broad range of solutions for all clients, drawing on internal investment capabilities when appropriate and external managers as required.

External investment management is accessed through HSBC's global Multimanager unit which is a core part of HSBC Investments. HSBC Investments manages assets of US$166 billion in retail mutual funds and lifecycle products, portfolios for private clients and institutions, and institutional money market funds (at 30th April 2006). HSBC Investments is part of Group Investment Businesses, which comprises four separate investment management entities within HSBC; HSBC Investments, HSBC Halbis Partners, Sinopia and HSBC Specialist Investments. These businesses manage assets of US$302 billion (at 30 April 2006).

LEAD
LEAD (Leadership for Environment and Development) is an international non-profit organisation with a fast growing network of 1600 leaders in more than 80 countries. Its mission is to inspire leadership for a sustainable world and it does this by searching worldwide for outstanding people, developing their leadership potential through innovative training programmes and working with them to make a difference to the future of the planet. LEAD has member programmes in Brazil, Canada, China, Commonwealth of Independent States, Europe, Francophone Africa, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, and Southern and Eastern Africa. The international secretariat is based in London and is a UK charity.