HSBC mulls fund of passive funds

HSBC is considering launching a global fund of passive funds as a low cost alternative to its actively-managed vehicle.

HSBC says the fund would broadly mirror the asset allocation of the £131.67m Open Global Return fund but would offer a TER of between 1% and 1.35% through the use of index funds and ETFs. If the proposal gets the green light, it is expected to launch by the end of Q2 and will most likely be run by Nicholas Pothier, manager of both the Open Global Return and Open Global Distribution funds. The move is part of a growing trend at HSBC towards lower charges and follows its decision last year to cut annual management charges on its range of tracker funds. Earlier this month, T.Bailey annou...