Bestinvest has suspended 'buy' ratings on the HSBC European Growth, UK Growth and UK Growth & Income...
Bestinvest has suspended 'buy' ratings on the HSBC European Growth, UK Growth and UK Growth & Income funds, following the departure of Russell, Rice and Dean.
Jason Hollands, deputy managing director of Bestinvest, said: 'There is bound to be speculation about whether HSBC will seek to increase its 51% ownership of Framlington as a way out of the crisis. However, because of the voting structure at Framlington, this could only be achieved by consent, so we feel it is unlikely.'
Hargreaves Lansdown, Chelsea Financial Services and Bates Investments have also put the funds on hold.
Darius McDermott, managing director of Chelsea, said: 'We'll be recommending clients hold fire. We will be seeking urgent meetings with the new managers when they are appointed but I feel HSBC will struggle to find worthy replacements in the current environment. If it fails to do so, we will without hesitation put the funds on our sell list.'
Bambos Hambi, head of multi-manager services at Rothschild Asset Management, said he is looking to sell out of Growth & Income, a move in keeping with his aim of increasing the risk profile on his UK fund of funds offering.
Hargreaves said once Russell sets up an alternative fund at Cazenove, it is likely to recommend clients shift across out of the HSBC fund.
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