The so-called HSBC World Index range will launch on 17 October and offers cautious, balanced and dynamic options designed to suit different levels of investor risk tolerance.
The portfolios have a clean fee annual management charge of 0.5% and no initial charge, and are available to intermediaries and non-advised clients via the retail (X) share class.
At outset the total expense ratio (TER) is expected to be 0.83%, including registration fee.
Structured as Non-Ucits Retail Schemes (NURS) the portfolios will hold traditional asset classes such as equities and bonds, but will also invest in alternative asset classes such as commodities, private equity and property.
Hedge funds will not be included in the portfolios.
The lower cost of the new range is mainly possible because they will mainly hold passive investments such as index trackers and ETFs.
These will be index-linked funds and ETFs from within HSBC’s own range as well as those offered by external asset managers.
The portfolios will be rebalanced on a regular basis by the multi-asset team at HSBC Global Asset Management, based in the UK and run by Caroline Hitch.
HSBC said their clean fee structure was designed to bolster its suite of products suitable in a RDR compliant world.
Back in September 2009 HSBC reduced charges across its full index tracking range to 0.25% on a clean fee basis.
Andy Clark, head of wholesale for Europe, Middle East and Africa at HSBC Global Asset Management, said: "The World Index Portfolio range 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 allocationo team."
The minimum lump sum investment for the funds is £1,000, while regular savers can start at £50 per month.
