HSBC investments extends fund choice in bundled DC pensions offering

HSBC Investments in the UK has made 15 funds from external providers available within its bundled defined contribution (DC) proposition.

Effective now, HSBC Investments offers core and higher return funds from external providers including BlackRock, JP Morgan, Baillie Gifford, Newton and M&G.

Peter Cox, Head of DC Services at HSBC Investments (UK), said consultants are looking for providers who can offer a broader choice of funds to pension schemes and their members, alongside excellent service, financial strength and a quality brand.

He added: “HSBC Investments has watched the trend toward open architecture unfold in recent years and is in a position to respond to industry concerns about what makes for an appropriate and sustainable fund offering. There is increasing recognition that fund proliferation is becoming (or in some instances has become) a problem for providers, fund managers, employers/trustees and members. We have responded to the need for more choice, but not at the cost of proliferation, which is both confusing and damaging.”

HSBC Investments is therefore offering 15 external funds from the selected providers, in addition to its own range. The UK, Global and Managed sectors offer the widest choice, as these are seen as the most popular among members.

External funds included on the platform were chosen through a structured selection process aimed at meeting key requirements. This best of breed approach has also ensured daily dealing on all funds, complementing an existing range of active, passive, specialist and multi-manager funds.