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HSBC EUROPEAN INDEX C

HSBC EUROPEAN INDEX C - Overview

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

This fund aims to provide long-term capital growth by matching the performance of the FTSE Developed Europe (excluding UK) Index. This index comprises around 400 large and mid-cap stocks based in 14 developed continental European countries. In order to track the index HSBC’s passive funds team pursues a full replication method, buying all of its constituents in the same proportion as the index.

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

Fund summary

Sector Europe Excluding UK
Structure OEIC
Launched September, 2012
Size £1,047m
Yield 2.5%
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 0.08%
Ongoing charges figure 0.08%

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 Investor Information 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 European equities. This index is made up of large, well known companies with global businesses which provides investors with both geographic and sector diversification.

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 100
North America 0
Japan 0
Pacific 0
Emerging Markets 0
Allocation Proportion(%)
Large Caps 91
Mid Caps 9
Small Caps 0
View all performance data for this fund

Investment process

The fund's objective is to provide long-term capital growth by matching the capital performance of the FTSE Developed Europe ex UK 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. The fund engages in stock lending – loaning out its shares to other investors in return for a payment, which boosts performance. However, this introduces counterparty risk to the fund.

Live feed

Bid price(inc) 629.40p
Accum units 873.10p
Fund commentary 13/02/12
Fund data updated on 21/07/17

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 100
North America 0
Japan 0
Pacific 0
Emerging Markets 0

Equity Capitalisation

Allocation Propor
tion(%)
Large Caps 91
Mid Caps 9
Small Caps 0

Top 10 holdings

As at: 30/04/2017
3.6% Nestle Sa
2.78% Roche Hldg Ag
2.75% Novartis Ag
1.71% Total Sa
1.65% Siemens Ag
1.59% Sanofi
1.55% Bayer Ag
1.42% Banco Santander Sa
1.36% Anheuser-Busch Inbev Sa
1.36% Basf Se
Source: Trustnet

Sector breakdown

Financials 21%
Consumer Goods 18%
Industrials 15%
Health Care 12%
Basic Materials 8%
Money Market 7%
Consumer Services 5%
Technology 4%
Oil & Gas 4%
Telecommunications 3%

Portfolio details

Around 400 stocks.

Constraints

This is a tracker fund and so is managed passively.

Average monthly relative returns Bestinvest MRI
12/13 13/14 14/15 15/16 16/17   3 years 5 years Career 3 years 5 years Career
-0.15% 0.08% -0.60% 0.04% -0.05%   -0.20% -0.14% -0.11% 16.90% 19.80% 28.80%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

HSBC Global Asset Management (UK) Limited

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 (Uk) Limited has 18.6 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.11%. During the worst period of relative performance (from December 2000 - April 2015) there was a decline of 27% relative to the index. The worst absolute loss has been 45%.

Periods of worst performance
Absolute -45% (October 2007 - November 2008)
Relative -27% (December 2000 - April 2015)

Sector record since December 1998 (19 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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