HSBC Global Asset Management has launched an RDR-ready share class on its passive fund range.
The new clean-fee share class is available on each fund in the index-tracking range. Annual management charges (AMC) are 0.1% or a total charge by HSBC Global Asset Management of 0.15%, including the registration fee. There is no initial fee.
Currently the AMC is 0.25% without initial charge.
The estimated total ongoing charges (including the HSBC charges noted above) to investors in the new share class for the passive range will be:
|Name||Current ongoing charges (%)||Estimated ongoing charges(%)*|
|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 Japan Index||0.33||0.23|
|HSBC Pacific Index||0.46||0.36|
|HSBC UK Gilt Index||0.28||0.18|
The clean fee share classes on the index-trackers are available immediately to institutions, discretionary managers and IFAs through the majority of platforms operating an unbundled charging structure.
Andy Clark, head of wholesale, Europe, Middle East and Africa at HSBC GAM, 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."
RDR share classes on other fund ranges will be launched by the end of the year.
* The estimated ongoing charge includes operating costs, such as fees paid to the trustee (or depositary), custodian, auditor and regulator.
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