Farley Thomas, global head of wholesale at HSBC Investments, said although stocks had become overheated last year and some had fallen 30% since their highs last November, many still had favourable earnings forecasts and were now attractively valued.
“The ongoing market volatility has understandably increased risk aversion, but the long-term theme of climate change investment remains very relevant,” said Thomas.
“Given it will take many decades to arrest global warming, HSBC sees climate change as one of the most significant investment themes into the foreseeable future.”
Launched in November 2007, the HSBC climate change fund is managed by Sinopia, the active quantitative specialist of the HSBC Group.
It uses the HSBC global climate change index as a benchmark, which captures low carbon energy production; energy efficiency and energy management; and water, waste and pollution control.
The fund aims to outperform this index using Sinopia’s active quantitative stock selection model and invests in around 60 companies.
Stocks included in the index are those considered best placed to benefit from addressing, combating and developing solutions to the challenges presented by climate change.
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