HSBC Investments appoints external managers for two UK equity funds

HSBC Investments in the UK has announced its line up of external fund managers for the HSBC UK Growth & Income and HSBC Income funds, following the decision to adopt the Multimanager approach.

After undertaking a rigorous selection process, the UK Multimanager team of HSBC Investments has chosen three underlying managers for each fund. Allocations to each manager will be closely monitored and actively managed by the Multimanager team in London.

Managers selected for the £1.1 billion HSBC UK Growth & Income fund are GMO (which will adopt a core strategy), Mirabaud (alpha strategy), and Edinburgh Partners (opportunities strategy).

Managers chosen for the £444 million HSBC Income fund are Edinburgh Partners, Walker Crips and GMO. Each of these managers will adopt income-oriented strategies.

James Hughes, Head of UK Multimanager at HSBC Investments, said: “The Multimanager team has searched the global asset management market to identify highly talented managers with investment styles that complement each other. Our intention is that when these styles are blended, the fund can achieve consistent returns over the medium to long term.

Andy Clark, Head of Wholesale at HSBC Investments, said: “The move to external managers within these funds demonstrates our commitment to looking beyond our in-house investment teams if we believe external managers are more appropriate. In addition, since the strategies we will use are not readily available in the UK retail market, the HSBC UK Growth & Income and HSBC Income funds will offer investors wider access to scarce investment talent.”

The move to Multimanager will begin on 29 November 2006, when the assets of each fund will be transitioned to the desired structure of the new managers. To ensure the change is executed in a very cost effective manner, State Street Transition Managers has been mandated to manage the process.