If a deal is secured, HSBC’s entire flagship range of Luxembourg-based global investment funds could be available exclusively via Hargreaves Lansdown’s Vantage fund supermarket within the next month.
HSBC Global Asset Management managing director Andy Clark says most fund super- markets lack the admin capability to distribute Sicavs.
He says: “Sometimes there are currency and share class issues but normally you can get around that. A lot of the issues relate to administration and dealing charges. When you speak to platforms, their answer is that there is no demand from IFAs or clients but the fact is that the funds are not available. It is frustrating that some of the best stuff out there is not available to clients.”
Clark says the proposed tie-up will give IFAs easier access to Sicavs and that the appetite for these investments will grow with continuing globalisation.
He says: “In 10 years time, I think Sicavs will sell a lot more than Oeics in the UK. My aim is to allow every IFA in the country the opportunity to buy one without stress or hassle. We are working with the fund supermarkets to try and find a solution but some fund groups don’t have a Sicav range so they have no interest in them becoming successful.”
Fidelity International head of UK retail marketing Rob Fisher says: “We have a small range of Sicavs on the core FNW platform, essentially funds from Fidelity and Schroders. While we add new funds and providers to the platform on a regular basis, demand for Sicavs from our users remains subdued. That said, the FNW Sipp and international bond wrappers both now allow clients to invest off platform into offshore funds not usually available on the platform.”