HSBC Global Asset Management is launching three low-cost passive funds.
The HSBC world index range will launch on October 17 and encompasses the cautious, balanced and dynamic options, designed to suit different levels of investor risk tolerance.
The portfolios are available to intermediaries and non-advised clients, via the retail, X, share class with a clean fee annual management charge of 0.5 per cent and zero initial charge.
Investments to be held within these portfolios, structured as non-ucits retail schemes, include traditional asset classes such as equities and fixed income, in addition to alternative asset classes such as commodities, private equity and property. Hedge funds will not be included.
The portfolios are rebalanced on a regular basis by HSBC Global Asset Management’s multi asset team, based in the UK and led by Caroline Hitch.
HSBC Global Asset Management head of Wholesale for Europe, Middle East and Africa Andy Clark says the new HSBC World Index Portfolio range provides the benefits of diversification and strategic asset allocation, while delivering lower charges on a clean fee basis. The clean fee structure of the HSBC World Index Portfolio range builds upon HSBC Global Asset Management’s suite of products suitable in a RDR compliant world.”
Minimum lump sum investment for the World Index funds is £1,000, while regular savers can start at £50 per month.
At outset the TER is expected to be 0.83 per cent, including registration fee.
Money Marketing revealed that Fidelity is to launch three low-cost funds. The multi-asset allocator defensive, multi-asset allocator balanced and multi-asset allocator growth funds will launch on October 10.
In February, JP Morgan launched a low-cost fund with a maximum TER of 0.55 per cent. Schroders added three low-cost funds this year with capped TERs of between 0.4 and 0.5 per cent.