fund
HSBC American Index C
Low cost fund of large cap US equities which tracks the S&P 500 index.
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558.70p
Price (Inc)
These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.
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683.20p
Price (Acc)
These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?
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0.00%
Initial chargeSome funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!
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0.06%
Annual management charge
This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).
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0.06%
Ongoing charges
This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.
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1.50%
Yield
How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…
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.
Fund summary
| Sector | North America |
| Structure | OEIC |
| Launched | September, 2012 |
| Size | £5,634m |
| Yield | 1.50% |
| 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 | 0.06% |
| Ongoing charges figure | 0.06% |
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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.
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.
Manager research
Average monthly relative returns
- 15/16 0.04%
- 16/17 -0.05%
- 17/18 0.14%
- 18/19 0.20%
- 19/20 -0.46%
Bestinvest MRI
- 3 years -0.04%
- 5 years -0.02%
- Career -0.10%
- 3 years 47.60%
- 5 years 49.20%
- Career 28.10%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.
HSBC Global Asset Management
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 21.6 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.1%. During the worst period of relative performance (from December 2000 - March 2020) there was a decline of 31% relative to the index. The worst absolute loss has been 45%.
Periods of worst performance
| Absolute | -45.00% (October 2007 - November 2008) |
| Relative | -31.00% (December 2000 - March 2020) |
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.
Allocation
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Top 10 holdings
Data accurate as at 31 January 2020
| 4.73% | Microsoft Corp |
| 4.71% | Apple Inc |
| 3.05% | Amazon.com Inc |
| 1.78% | Facebook Inc |
| 1.62% | Berkshire Hathaway Inc |
| 1.58% | Alphabet Inc |
| 1.57% | Google Inc |
| 1.53% | Jpmorgan Chase & Co |
| 1.43% | Johnson & Johnson |
| 1.27% | Visa Inc |
| Source: Trustnet |
Sector breakdown
| Information Technology | 24.00% |
| Health Care | 13.00% |
| Financials | 12.00% |
| Communications | 10.00% |
| Consumer Discretionary | 10.00% |
| Industrials | 9.00% |
| Consumer Staples | 7.00% |
| Energy | 4.00% |
| Utilities | 3.00% |
| Real Estate | 3.00% |