HSBC brings world class SICAV funds to UK intermediaries via Cofunds partnership
Published: 6 January 2009
HSBC Global Asset Management’s leading Luxembourg-based fund range is now available to UK intermediaries via the Cofunds platform.
Effective from 5 January 2009, HSBC has become the biggest provider of offshore global emerging markets (GEM) funds (1) on Cofunds, the UK’s largest business-to-business investment platform.
Andy Clark, Managing Director at HSBC Global Asset Management, said: “This is an important development for HSBC Global Asset Management. HSBC is now the number one emerging markets fund manager by both assets under management and number of emerging markets funds available on the UK’s largest fund distribution platform for intermediaries.”
Fund platforms have traditionally been reluctant to offer access to SICAV funds, partially due to administrative and technical difficulties. Therefore, intermediaries have, in the past, found it difficult to access these funds. Independent research commissioned by HSBC Global Asset Management in 2008 found that 84 per cent of UK intermediaries interviewed would more frequently recommend offshore funds to their clients if they were available through supermarket platforms. (2)
Clark said Cofunds has shown itself to be a leader in this field by overcoming these obstacles to offer IFAs access to world class fund ranges.
HSBC Global Asset Management’s most highly sought after funds include the US$2.03bn HSBC GIF Indian Equity fund, managed by Sanjiv Duggal, US$904m HSBC GIF BRIC Freestyle fund, managed by Nick Timberlake, US$2.03bn HSBC GIF Chinese Equity Fund, managed by Richard Wong and US$464m Brazil Equity Fund managed by Luiz Ribeiro (fund sizes at end October 2008). These funds are among the biggest active managed funds in their respective sectors globally.
In addition to the GEM funds on offer, HSBC will also offer its innovative GIF Climate Change fund, launched in November 2007.
Russell Lancaster, Director, Fund Manager Relationships at Cofunds, said: “Our clients are becoming increasingly keen to look beyond the traditional UK-domiciled funds to access world leaders. This arrangement with HSBC Global Asset Management will help to facilitate more choice for intermediaries through access to some of the best specialists globally.”
Clark added that the Cofunds agreement represented a growing acceptance in the UK market for SICAVs.
He said: “This latest agreement with Cofunds is in keeping with HSBC Global Asset Management’s strategy of making some of the best funds in the world available to UK advisers and their clients.”
HSBC’s SICAVs have UK distributor status and will deal, price and report in Sterling. To ensure intermediaries always have access to ample information on HSBC’s SICAV range, the group has established a dedicated website for advisers www.globalfunds.hsbc.com. Under Cofunds, minimum investments start at £50 lump sum or £50 per month for regular savings. Cofunds also offers an Isa wrapper.
Funds to be included on the Cofunds platform at outset include:
HSBC GIF Brazil Equity
HSBC GIF BRIC Freestyle
HSBC GIF BRIC Markets Equity
HSBC GIF Chinese Equity
HSBC GIF Climate Change
HSBC GIF Global Emerging Markets Bond
HSBC GIF Global Emerging Markets Equity
HSBC GIF Global Emerging Markets Local Debt
HSBC GIF Indian Equity
HSBC GIF Latin American Freestyle
Media enquiries to:
HSBC Global Asset Management
Jenne Mannion on 44 20 7024 0444or at email: jenne.mannion@hsbc.com Jane Crookbain 44 0 207 024 0412
or at email: Jane.crookbain@hsbc.com
Cofunds
or at email: Daniella.Johnston@cofunds.co.uk
Hilary Morison 44 0 20 3008 6064
or at email: Hilary.Morison@mrm-london.com
Authorised and regulated by the Financial Services Authority.