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Bestinvest rating
HSBC AMERICAN INDEX C

HSBC AMERICAN INDEX C - Overview

Overview of HSBC AMERICAN INDEX C Buy in ISA Buy in Investment Account

The Fund's investment objective is to provide long term capital growth by matching the capital performance of the S&P 500 Index. This index consists of the 500 largest US equities, weighted by market value. Run by HSBC's passive funds team, it aims to match the index's performance through full replication of its stocks.

  • Standard Initial Charge 0.00%
  • Initial charge via Bestinvest 0.00%

Fund summary

Sector North America
Structure OEIC
Launched September, 2012
Size £3,541m
Yield 1.4%
Charging basis Income
Dividends paid 15 Jul

Charges

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%

Risks

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.

Bestinvest view

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.

Portfolio

Allocation Proportion(%)
Equity 100
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 0
Allocation Proportion(%)
UK 0
Europe 0
North America 99
Japan 0
Pacific 0
Emerging Markets 1
Allocation Proportion(%)
Large Caps 87
Mid Caps 13
Small Caps 0
View all performance data for this fund

Investment process

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.

Live feed

Bid price(inc) 486.00p
Accum units 575.40p
Fund commentary 07/10/11
Fund data updated on 20/09/18

Asset allocation

Allocation Proportion(%)
Equity 100
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 0

Equity Geographic

Allocation Proportion(%)
UK 0
Europe 0
North America 99
Japan 0
Pacific 0
Emerging Markets 1

Equity Capitalisation

Allocation Propor
tion(%)
Large Caps 87
Mid Caps 13
Small Caps 0

Top 10 holdings

As at: 31/07/2018
3.88% Apple Inc
3.38% Microsoft Corp
2.95% Amazon.com Inc
1.71% Facebook Inc
1.63% Jpmorgan Chase & Co
1.58% Berkshire Hathaway Inc
1.52% Alphabet Inc Npv C
1.51% Alphabet Inc. Class A
1.47% Johnson & Johnson
1.43% Exxon Mobil Corp
Source: Trustnet

Sector breakdown

Technology 21%
Financials 19%
Consumer Services 13%
Health Care 13%
Industrials 12%
Consumer Goods 8%
Oil & Gas 6%
Utilities 3%
Basic Materials 2%
Telecommunications 2%

Portfolio details

No information available.

Constraints

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
-0.02% -0.29% -0.20% -0.25% 0.53%   0.03% -0.04% -0.09% 57.90% 43.60% 33.40%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

HSBC Global Asset Management

Manager. 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.

Track record

Hsbc Global Asset Management has 19.8 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)

Sector record since December 1998 (20 yrs)




About the MRI

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.

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