fund
This is one of our rated funds. They’re the ones our experts believe will do well for investors over the longer term. Top of the class!
HSBC FTSE 250 Index C
A fully replicated tracker, following the FTSE 250 index of mid sized UK equities.
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190.30p
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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299.90p
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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0.11%
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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0.18%
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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2.30%
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 objective is to provide long term capital growth by matching the performance of the FTSE 250 Index. This index consists of the 250 largest UK equities outside the FTSE 100, weighted by market value. Run by HSBC's passive funds team, the fund invests in the physical securities and fully replicates the index. Annual charges are low.
Fund summary
| Sector | UK All Companies |
| Structure | OEIC |
| Launched | September, 2012 |
| Size | £1,311m |
| Yield | 2.30% |
| 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 | 0.11% |
| Ongoing charges figure | 0.18% |
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Investment process
This fund aims to produce capital growth through a portfolio of investments in mid cap UK companies. The fund aims to match the returns of the FTSE 250 share index as closely as possible, with minimum tracking error. A near full replication strategy is used by holding all of the constituents of the index except the three non-sterling denominated investment trusts (replaced by additional shares in the sterling units) and equitising accrued dividends through equity index futures. Exchange traded funds (ETFs) are held to manage daily flows.
The fund provides a simple, low cost and flexible way of investing in the FTSE 250 Index. The index is made up of medium-sized companies but many are still well known. Though there are active fund managers who are able to add value at this mid-cap range of the UK equity market, a low cost passive funds like this can still be an attractive alternative as part of a diversified portfolio.
Manager research
Average monthly relative returns
- 16/17 -0.03%
- 17/18 -0.45%
- 18/19 0.49%
- 19/20 0.05%
- 20/21 -0.36%
Bestinvest MRI
- 3 years 0.06%
- 5 years -0.06%
- Career -0.09%
- 3 years 59.50%
- 5 years 42.90%
- Career 30.20%
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 22.2 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.09%. During the worst period of relative performance (from December 2000 - October 2020) there was a decline of 32% relative to the index. The worst absolute loss has been 45%.
Periods of worst performance
| Absolute | -45.00% (October 2007 - November 2008) |
| Relative | -32.00% (December 2000 - October 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 July 2020
| 1.3% | Direct Line Insurance Group |
| 1.27% | B & M European Value Retail Sa |
| 1.23% | Pershing Square Hldgs Ltd |
| 1.16% | Foreign & Colonial Inv Trust |
| 1.04% | Convatec Group Plc |
| 1.01% | Hicl Infrastructure Plc |
| 1.01% | Bellway |
| 1% | Weir Group Plc (The) |
| .98% | Tate & Lyle |
| .96% | Unite Group |
| Source: Trustnet |
Sector breakdown
| Financials | 42.00% |
| Industrials | 20.00% |
| Consumer Services | 11.00% |
| Consumer Goods | 7.00% |
| Mutual Funds | 7.00% |
| Health Care | 4.00% |
| Basic Materials | 3.00% |
| Technology | 3.00% |
| Utilities | 1.00% |
| Oil & Gas | 1.00% |
Constraints
VP 12.00.