HSBC Global Asset Management is to launch three low cost portfolios to offer diversified access to global equity and bond markets, as well as alternative investments.
Designed to suit different levels of risk tolerance, the HSBC World Index range comprises “Cautious”, “Balanced” and “Dynamic” options.
The investments to be held within these portfolios are non-Ucits retail schemes. The investment universe includes traditional asset classes such as equities and fixed income, in addition to alternative asset classes such as commodities, private equity and property.
HSBC’s multi asset team, led by Caroline Hitch, will rebalance the portfolios on a regular basis.
It says the costs will be lower than those of other funds because the portfolios primarily hold passive investments such as index tracking funds and exchange traded funds. The total expense ratio will be 0.83%.
The launch is scheduled for October 17.
Elsewhere in the industry, Fidelity Worldwide Investments recently launched a low cost range. JP Morgan Asset Management and Schroders Investment Management already offer low cost active funds.
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