SRD II aims to promote effective stewardship and improve transparency in how asset owners (life insurers) and asset managers set their long-term investment strategies and how they communicate these when working together.
A. Shareholder engagement policy
HSBC Life maintains an Investment Policy in relation to HSBC Life Assets which is updated annually. The Policy does not currently include Equity Investment and no direct or indirect exposure to Equities are held by the HSBC Life to match long term liabilities. There are currently no plans to widen the Investment Policy to include Equity Investments. HSBC Life does not exercise any Voting Rights on any Company Assets.
HSBC Life does not therefore appoint a Fund Manager to manage Equity Investments on its behalf. HSBC Life does appoint a Fund Manager to manage Equity Investments for its unit linked funds which support Life Products.
A unit linked fund is an investment, which combines your money with money from other investors and buys units in a fund which invests directly and indirectly in shares traded in a regulated market.
Currently, HSBC Life unit linked funds are managed by HSBC Global Asset Management ("the Fund Manager") on a discretionary fund management basis. The funds have a mandate in place to ensure the funds are managed in line with customer expectations as set out in the relevant fund objectives.
The Fund Manager's engagement policy may be found using the following link:
https://www.assetmanagement.hsbc.co.uk/en/institutional-investor/about-us/responsible-investingOpens in external site
B. Investment strategy and arrangements with asset managers
Under the FCA rules we are required to provide the following public disclosures regarding our arrangements with Fund Managers: