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This fund tracks the S&P 500, an index of large cap US equities. Run by HSBC's passive funds team, it aims to match the index's performance through full replication of its stocks. Active fund managers have historically struggled to add value at the large cap end of the US equity market, making low cost passive funds like this an attractive alternative as part of a diversified portfolio.
|Dividends paid||15 Jul|
|Standard initial charge||0.00%|
|Initial charge via Bestinvest||0.00%|
|Additional bid/offer spread||0.00%|
|Annual management charge||0.07%|
|Ongoing charges figure||0.07%|
Before investing make sure you have understood the risks relevant to the fund by reviewing our Risk Warnings section. Further information on the risks are contained in the fund's Key Information Investor Document, which we make available to you before you make a decision to invest, alternatively it is available on request.
This fund provides a simple, low cost way of investing in large cap US equities, specifically those of the S&P 500 index. This index is made up of large, well known companies with global businesses which provides investors with both geographic and sector diversification. Active fund managers have historically struggled to add value at the large cap end of the US equity market, making low cost passive funds like this an attractive alternative as part of a diversified portfolio.
|High yield bonds||0|
The fund's investment objective is to provide long term capital growth by matching the capital performance of the S&P 500 Index. The managers believes that, in the longer term, financial markets are rational and that asset prices cannot durably differ from their fundamental value. Therefore one of the most efficient ways to gain long term exposure to a market is to invest in a representative market index. The managers aim to match the index's performance through full replication of its stocks. Though primarily an equity fund, the manager will also use futures, a type of derivative which provides liquid exposure to the whole of the index. These are used to manage cash balances in the fund - by buying and selling futures the manager can regulate market exposure in response to inflows and outflows without the costs involved in trading all of the shares in the portfolio.
|Fund data updated on||25/05/18|
|High yield bonds||0|
As at: 28/02/2018
3.89% Apple Inc
3.09% Microsoft Corp
2.57% Amazon.com Inc
1.8% Facebook Inc
1.72% Jpmorgan Chase & Co
1.7% Berkshire Hathaway Inc
1.49% Johnson & Johnson
1.41% Alphabet Inc
1.4% Alphabet Inc. Class A
1.36% Exxon Mobil Corp
|Oil & Gas||5%|
No information available.
This is a tracker fund and so is managed passively.
|Average monthly relative returns||Bestinvest MRI|
|13/14||14/15||15/16||16/17||17/18||3 years||5 years||Career||3 years||5 years||Career|
|Performance figures are based on the average of monthly percentage returns relative to the benchmark index.|
Bijan Seghatchian is presently Fund Manager of Passive Equity Funds at HSBC Global Asset Management, having managed equity index funds since January 2009. He was previously an Operations / Business Development Manager from 2007, and was with the HSBC Global Asset Management Group IT since February 1995. Seghatchian holds a BSc in Psychology /Philosophy from Bristol University, an MSc in Systems & Technology from City University and a Post Graduate Certificate in Economics from London University.
Hsbc Global Asset Management has 19.4 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.09%. During the worst period of relative performance (from December 2000 - January 2018) there was a decline of 30% relative to the index. The worst absolute loss has been 45%.
|Periods of worst performance|
|Absolute||-45% (October 2007 - November 2008)|
|Relative||-30% (December 2000 - January 2018)|
Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.