HSBC Asset Management (HSBC AM) has launched two new emerging market equity index funds aimed at UK investors, expanding its range of passive strategies targeting some of the world’s fastest-growing economies.
The new offerings, the HSBC MSCI Emerging Markets Equity Index Fund and HSBC MSCI Emerging Markets ex-China Equity Index Fund, are designed to meet investor demand for diversified, granular access to emerging markets amid rising concerns around concentration risk and global economic uncertainty.
The HSBC MSCI Emerging Markets Equity Index Fund tracks a standard market-cap weighted index, offering exposure to large- and mid-cap stocks across 24 emerging markets. It aims to capture approximately 85% of the free float-adjusted market capitalisation in each country.
On the other hand, the HSBC MSCI Emerging Markets ex-China Equity Index Fund allows investors to isolate their China exposure, providing greater flexibility in managing emerging market allocations and expressing regional views.
Roundtable report: Shifting perspectives in Asia
The funds have received seed investment from Tatton Investment Management, a UK provider of model portfolio services.
The launch follows the success of HSBC AM’s S&P 500 Equal Weight Index Fund, introduced in October 2024. That UK-domiciled fund recently surpassed $600 million in assets under management as of 28 March 2025, as investors increasingly seek diversified alternatives to concentrated benchmarks, shared HSBC AM.
Both new funds incorporate HSBC AM’s Thermal Coal Phase-Out Policy, screening out companies involved in thermal coal-related activities.
Bhavick Patel, head of UK ETF and Indexing sales at HSBC Asset Management, commented: “As part of our increased efforts to help clients add emerging market exposures to their portfolios and to build on our strong track record in this space, we are pleased to introduce the HSBC MSCI Emerging Markets Equity Index Fund and the HSBC MSCI Emerging Markets ex-China Equity Index Fund.
Both strategies are a natural extension of our commitment to delivering innovative solutions for clients and aim to provide UK investors with access to some of the world’s most dynamic markets, while addressing demand for greater diversification and granular country-level risk-taking, with the HSBC MSCI Emerging Markets ex-China Equity Index Fund also allowing investors to better capture regional nuances.”