Discretionaries and IFAs can access the share class through platforms operating an unbundled charging structure from today.
Meanwhile HSBC plans to launch clean fee share classes on its other fund ranges by the end of 2012.
Phil Reid, head of UK external distribution for HSBC, said the passive strategy had been announced first because most fund houses have led on their passive clean fee share classes and because in the beta space price and tracking error are the prime considerations.
Under the new structure, each fund in the S&P Platinum rated index tracking range will have a new share class priced with an AMC of 0.10% or a total charge by HSBC Global Assest Management of 0.15% including the registration fee.
This compares to an existing AMC of 0.25%, while estimated ongoing charges are also 0.10% cheaper than current ongoing charges.
|
Name |
Current Ongoing Charges* |
Estimated ongoing charges figure (OCF)** |
|
HSBC FTSE 100 Index |
0.27% |
0.17% |
|
HSBC FTSE 250 Index |
0.29% |
0.19% |
|
HSBC FTSE All Share Index |
0.28% |
0.18% |
|
HSBC American Index |
0.30% |
0.20% |
|
HSBC European Index |
0.35% |
0.25% |
|
HSBC |
0.33% |
0.23% |
|
HSBC Pacific Index |
0.46% |
0.36% |
|
HSBC |
0.28% |
0.18% |
Andy Clark, head of wholesale, EMEA, at the firm, said: “HSBC Global Asset Management is already recognised for its highly competitive index tracking charges following the decision in 2009 to reduce the AMC on funds in this range to 0.25%.
“This latest move means HSBC continues to offer the biggest index tracking range with a market leading price.”
The launch of the share classes on the UK passive range will be followed by the launch of further share glasses on HSBC’s Luxembourg-domiciled Global Investment Funds Sicav and for certain other funds within the remainder of the UK fund range.
