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HSBC launches RDR share class for passive fund range
by Jun Merrett on Sep 04, 2012 at 12:17
HSBC Global Asset Management has launched retail distribution review (RDR)-share classes for its passive fund range.
The clean share classes with an annual management charge of 0.1% for index tracking funds have been launched ahead of HSBC's other fund ranges which will have clean share classes by the end of the year.
The existing annual management charge (AMC) is 0.25% without initial charge.
HSBC will also launch further share classes on its Luxembourg-domiciled Global Investment Funds, and certain funds in its UK fund range including World Selection and World Index.
The share classes on the index tracking funds are available to IFAs, institutions, and discretionary fund managers.
The bank said it was currently speaking to all the major UK platforms over offering the new share classes.
Andy Clark, head of wholesale, Europe, Middle East and Africa at HSBC (pictured), said: 'It is encouraging to see the asset management industry moving toward a more transparent charging structure in the lead up to the introduction of the RDR. In unveiling the first of our new RDR-compliant share classes, HSBC Global Asset Management aims to have a truly transparent charging structure whilst providing high quality products at competitive prices.'
Each fund in the S&P Platinum rated index tracking range will either have an AMC of 0.1% or a total charge of 0.15% by HSBC which includes the registration fee and will have no initial fee.
The estimated total ongoing charges are:
- HSBC FTSE 100 Index - From 0.27% to 0.17%
- HSBC FTSE 250 Index - From 0.29% to 0.19%
- HSBC FTSE All Share Index- From 0.28% to 0.18%
- HSBC American Index- From 0.30% to 0.20%
- HSBC European Index- From 0.35% to 0.25%
- HSBC Japan Index- From 0.33% to 0.23%
- HSBC Pacific Index- From 0.46% to 0.26%
- HSBC UK Gilt Index- From 0.28% to 0.18%
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