HSBC enters European ETF market

Published: 24 August 2009

HSBC unveils first in a planned suite of ETFs

HSBC today announced it will launch, on 25 August 2009, the HSBC FTSE 100 ETF, the bank's first European Exchange Traded Fund (ETF). Listed on the London Stock Exchange, the new ETF (ticker: HUKX) is designed to track the performance of the FTSE 100 index.

The HSBC FTSE 100 ETF, domiciled in Ireland, is registered for sale in the UK and a number of additional registrations are planned across Europe. HSBC Global Asset Management will be the investment manager and HSBC Global Markets will ensure liquidity as a market maker. The total expense ratio will be 0.35 per cent.

ETFs have gained ground over the past few years in step with investors' demand for simpler, more flexible, risk controlled and good value investment products. ETFs represent around two per cent of the European mutual fund market compared with six per cent in the US (1). HSBC envisages substantial growth as they become an important part of the investment toolkit for all types of investors.

"We are intent on complementing our existing set of investment capabilities by developing a range of ETFs that can meet the main investment requirements of the institutional, wealth management and retail segments," said Mark McCombe, Chief Executive Officer of HSBC Global Asset Management.

"ETFs are one of the fastest-growing areas in the investment management industry and we aim to be among the leading providers within a few years," said Samir Assaf, Head of Global Markets at HSBC. "By leveraging the capabilities of the HSBC Group in fund management, market making, custody and fund administration, we are confident we can progressively build a strong suite of ETFs."

HSBC's entry into the European ETF market complements its business in Asia, through Hang Seng Bank, majority owned by HSBC, and HSBC Global Asset Management in Hong Kong. Together they have almost eight per cent of the regional ETF assets under management. On 14 August 2009, Hang Seng Bank’s ETFs became the first Hong Kong-listed funds to also be listed in Taiwan. Globally, HSBC is a well-established provider of services to the ETF industry, principally as a custodian and market maker.

Beyond Europe, HSBC plans to leverage its global capabilities to extend its ETF business across Asia, Latin America and the Middle East.

Further information:
For asset management enquiries:
Jenne Mannion + 44 (0) 20 7024 0444
or e-mail Jenne.mannion@hsbc.com

For Global Markets enquiries:
Charles Clarke on + 44 (0) 20 7991 3878
or e-mail charles.w.clarke@hsbcib.com

For Custody and Fund Administration enquiries:
Kate Cramer on + 44 (0) 0207 005 8945
or e-mail katecramer@hsbc.com

Notes to editors:

Photos available upon request

(1) As at end May 2009, European data source is EFAMA and BGI; US data source is ICI

HSBC ETFs PLC
HSBC ETFs PLC is an open-ended investment company with variable capital incorporated in Ireland and authorised by the Irish Financial Services Regulatory Authority as a UCITS pursuant to the UCITS Regulations. The Company is structured as an umbrella fund and may comprise several portfolios of assets. The Company has the status of a recognised scheme under section 264 of the FSMA. HSBC ETFs PLC has published Listing Particulars relating to the 500,000,000,000 issued and to be issued shares to be admitted to the Official List of the FSA and to trading on the London Stock Exchange's market for listed securities.

Copies of the HSBC ETFs PLC Listing Particulars and the HSBC FTSE 100 ETF Fund Supplement will shortly be available for inspection at the Document Viewing Facility of the UK Listing Authority and will also be available on the Company's website at www.etf.hsbc.com.

HSBC Global Asset Management
HSBC Global Asset Management comprises four specialist investment businesses: Halbis, Sinopia, Multimanager and Liquidity. HSBC Global Asset Management acts as the global representative of its specialist investment businesses and manages assets totalling USD390.1 billion at the end of June 2009. As one of the world's leading emerging markets asset management businesses, through its network of offices in over 20 countries around the world, HSBC Global Asset Management has strong relationships with corporates, institutions and financial intermediaries of all sizes and types. HSBC Global Asset Management is part of HSBC Global Banking and Markets, a division of HSBC Holdings plc. For more information see www.assetmanagement.hsbc.com

HSBC Global Banking and Markets
HSBC Global Banking and Markets is an emerging markets-led and financing-focused business that provides tailored financial solutions to major government, corporate and institutional clients worldwide. Global Banking and Markets has offices in more than 60 countries and territories. Managed as a global business, HSBC offers clients geographic reach and deep local knowledge. For more information on Global Banking and Markets, please visit www.hsbcnet.com

The information contained in this press release does not constitute an offer or solicitation for, or advice that you should enter into, the purchase or sale of any security or fund. The HSBC FTSE 100 ETF is authorised by the Irish Financial Regulator and is recognised in the UK by the Financial Services Authority for sale to UK investors only. It has not been registered or recognised by any other regulators.

HSBC Securities Services
HSBC Securities Services (HSS) provides fund administration, custody and related securities services around the world with more than 7,000 employees and around 2,300 clients. HSS's global assets under custody are USD4.4 trillion and global assets under administration are USD2.7 trillion as at 30 June 2009.

HSBC Holdings plc
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from around 8,500 offices in 86 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With assets of USD2,422 billion at 30 June 2009, HSBC is one of the world's largest banking and financial services organisations. HSBC is marketed worldwide as 'the world's local bank'.

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