HSBC launches World Index portfolio range

HSBC Global Asset Management is to launch three new low cost portfolios which offer diversified access to global equity and bond markets, as well as alternative investments.

The HSBC World Index range, to launch on 17 October, 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% and zero initial charge.  The new World Index range is also available to Life and Pension companies and would be suitable as a stakeholder pension offering.

Investments to be held within these portfolios, structured as Non-Ucits Retail Schemes (NURS), 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 lower costs can be delivered as the HSBC World Index portfolios primarily hold passive investments such as index tracking funds and ETFs that aim to match, where possible, the various asset classes globally.

The portfolios will hold a mix of HSBC's own ETFs and index tracking funds as well as those offered by external asset managers. For some asset classes such as UK gilts, individual securities will be held if considered to reasonably replicate the desired exposure. 

To ensure the best asset mix to the various markets, while minimising risk, 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.  

Andy Clark, head of Wholesale for Europe, Middle East and Africa at HSBC Global Asset Management, said 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 (Retail Distribution Review) compliant world. 

"The World Index portfolios provide a managed one-stop solution or portfolio building block for investors who recognise the importance of global multi-asset exposure and wish to benefit from the expertise of a well resourced and highly qualified asset allocation team. They offer investors a better selection of funds which are diversified across different asset classes and countries, the aim being to deliver stronger performance with less of the rollercoaster ride associated with concentrating investment in fewer asset classes."

Minimum lump sum investment for the World Index funds is £1,000, while regular savers can start at £50 per month.