HSBC Global Asset Management has launched two global sustainable funds to cash in on the growth in ESG-related investments.

The two funds, HSBC Global Sustainable Multi-Asset Conservative Portfolio and HSBC Global Sustainable Multi-Asset Balanced Portfolio, will sit alongside the company’s existing $87bn multi asset range.

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Apart from adding sustainability considerations, both the funds follow the same methodology used in the company’s multi-asset range.

Carrying around 35% equity exposure, the Conservative portfolio aims to provide lower volatility compared to the Balanced portfolio, which has around 60% equity exposure.

To be made available from this month, the two portfolios will seek higher average ESG score as well as lower portfolio carbon intensity than the market.

It will consider asset classes in long term allocations where sustainable characteristics can be measured and follow at least one industry recognised sustainable investment methods, set out by the Global Sustainable Investment Alliance.

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They carry an annual management charge of 0.45% with an estimated ongoing charges figure of 0.75%.

HSBC Global Asset Management head of UK wholesale Daniel Rudd said: “Sustainability considerations are becoming more prominent across all walks of life, from green energy, to free-range farming, people are looking for sustainable solutions to everyday problems.”

Last month, HSBC reported an adjusted pre-tax profit of $2.09bn for the third quarter of 2018 in its retail banking and wealth management division, a 25% jump over $1.68bn a year ago.