HSBC unit holders vote next month on the conversion of their funds into a single Oeic range. The in...
HSBC unit holders vote next month on the conversion of their funds into a single Oeic range.
The investment house is to send out voting packs on 11 September and plans to hold unit holder meetings on 27, 28 and 29 September. Assuming the changes are backed, the unit trusts will convert to an Oeic on 27 October and dealing will start on 31st of that month.
At the same time the group is to merge HSBC Investment Funds (UK), formerly Midland Unit Trust Management, and HSBC Unit Trust Management (UK) into the Oeic to be called HSBC Investment Funds (UK).
The Oeics funds will all have an initial charge of 4% with an annual fee on the actively managed portfolios ranging between 1.25% and 1.5%.
All funds will have an accumulation share class, while the UK Growth & Income, FTSE All-Share index, Income, Monthly Income, Corporate Bond, FTSE 250 Index and FTSE 100 Index funds will also have an income share class.
Global head of product development at HSBC Asset Management, Mark Dickson, said in time the group would look to add a share class with a 0% initial charge.
He stressed this would only be open to those who entered into a specific discretionary management agreement with the group.
Several funds from the HSBC and former Midland unit trust ranges are being merged as part of the process.
HSBC Continental European and HSBC European Growth merge into the latter and will be managed by Chris Rice. Steve Cordell, who managed the Continental European fund, will continue to wok in Rice's team.
HSBC Global Bond, run by James Lark, merges into HSBC Corporate Bond and will be managed by Andrew Cope. Lark, who will continue to run several offshore funds.
The High Income, High Yield and Extra High Yield funds will be managed by Wade Pollard who currently manages all three.
HSBC FTSE 100 tracker and UK Top 100 tracker will merge into the latter, while Tim Russell will continue to manage the merged UK Equity Income and Income funds.
HSBC has a total of £5.4bn invested in the two ranges and Fisher said there would be no change in the investment process applied by fund management teams.
The full range of funds within the Oeic include American Growth, American Index, Asian Growth, Balanced, British, Corporate bond, European Growth, European Index, FTSE 100 Index, FTSE 250 Index and FTSE All-Share Index.
The remaining portfolios in the 23 strong fund range are: Gilt & Fixed Interest, Hong Kong Growth, Household Names, Income, Japan Index, Japan Growth, Japanese Smaller Companies, Monthly Income, Pacific Index, UK Growth, UK Growth & Income and UK Smaller Companies.
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