HSBC FTSE 100 Index R

Low cost large cap UK equity fund tracking the FTSE 100 index.

  • 91.59p
    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.

  • 184.00p
    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?

  • 0.00%

    Initial charge

    Some 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!

  • 0.25%
    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).

  • 0.27%
    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.

  • 5.60%
    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…

Prices as at 06 April 2020, fund data last updated 22 July 2011

This fund aims to track the performance of the FTSE 100. This index consists of the 100 largest UK equities, weighted by market value. Run by HSBC's passive funds team, the fund invests in the physical securities and fully replicates the index.

Fund summary

Sector UK All Companies
Structure OEIC
Launched September, 1994
Size £757m
Yield 5.60%
Charging basis Income
Dividends paid 15 Jan, 15 Jul

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.25%
Ongoing charges figure 0.27%

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Investment process

The Fund aims to provide long term capital growth by matching the return of the FTSE 100 Index. This index comprises the 100 largest companies in the UK by market value and, though it only includes 100 companies, such is their size that they make up around 85% of the UK stockmarket by value. The managers aim to replicate the index as closely as possible, subject to liquidity constraints. The fund replicates changes to the index bearing in mind the trade-off between tracking error and trading costs. The fund invests in the physical securities of the index - this avoids the counterparty risk associated with index tracking products that use derivatives.

The fund provides a simple, low cost and flexible way of investing in the FTSE 100 Index. The index is made up of large, well known companies with global businesses which provides investors with geographic diversification, though it can be concentrated by sector. Active fund managers have historically struggled to add value at the large cap end of the UK 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 0.19%
  • 16/17 -0.19%
  • 17/18 0.07%
  • 18/19 -0.17%
  • 19/20 -0.41%

Bestinvest MRI

  • 3 years -0.17%
  • 5 years -0.10%
  • Career -0.11%
  • 3 years 28.40%
  • 5 years 33.40%
  • Career 23.30%

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 21.3 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 - 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

8.25% Royal Dutch Shell
5.8% Hsbc Hldgs
5.06% Astrazeneca Plc
4.72% Bp
4.54% Glaxosmithkline
3.98% British American Tobacco
3.6% Diageo
2.56% Unilever
2.33% Rio Tinto
2.08% Vodafone Group
Source: Trustnet

Sector breakdown

Financials 20.00%
Consumer Goods 16.00%
Oil & Gas 13.00%
Consumer Services 11.00%
Health Care 11.00%
Industrials 10.00%
Basic Materials 8.00%
Money Market 5.00%
Utilities 4.00%
Telecommunications 3.00%

Constraints

VP 12.00.

Key Investor Information - Income

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Key Investor Information - Accumulation

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