HSBC has selected US private firm GMO, investment boutique Edinburgh Partners and stockbroker Walker Crips to run over £1.5bn of its core equity income franchise.
GMO is a relative unknown to the UK retail market, but will manage 40 per cent of the portfolio, adopting a core strategy for the £1.1bn UK income and growth fund, while Edinburgh Partners will run an opportunities strategy and Swiss boutique Mirabaud an alpha strategy for the flagship fund.
The £444m HSBC income fund will be run by GMO alongside Edinburgh Partners and Walker Crips, with all three adopting an income–orientated strategy.
The move to multi-manager will commence on November 29.
HSBC announced its intention to transition its £2bn core UK equity income funds away from its active fund management unit Halbis to a multi-manager approach last month.
The move led to the departures of income and growth lead manager Bob Morris and income fund manager Chris Rodgers, with the third fund of the range, monthly income, transferring to quants specialist Sinopia two weeks ago.
HSBC Investments head of multi-manager James Hughes said: “The multi-manager team has searched the global asset management market to identify highly talented managers with investment styles that complement each other. Each has digfferent styles which are suited to varying market conditions.”