HSBC FTSE 250 Index R

A fully replicated tracker, following the FTSE 250 index of mid sized UK equities.

  • 191.20p Price (Inc)
  • 292.00p Price (Acc)
  • 0.00% Initial charge
  • 0.25% Annual management charge
  • 0.27% Ongoing charges
  • 2.70% Yield

Prices as at 06 December 2019

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 October, 1997
Size £1,150m
Yield 2.70%
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 0.25%
Ongoing charges figure 0.27%

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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

  • 14/15 -0.30%
  • 15/16 -0.15%
  • 16/17 -0.26%
  • 17/18 0.60%
  • 18/19 0.01%

Bestinvest MRI

  • 3 years 0.12%
  • 5 years -0.02%
  • Career -0.08%
  • 3 years 73.60%
  • 5 years 50.00%
  • Career 36.70%

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 20.8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.08%. During the worst period of relative performance (from December 2000 - January 2018) there was a decline of 30% relative to the index. The worst absolute loss has been 45%.

Periods of worst performance

Absolute -45.00% (October 2007 - November 2008)
Relative -30.00% (December 2000 - January 2018)

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.

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Top 10 holdings

Data accurate as at 31 July 2019

1.26% Meggitt Plc
1.08% Cobham Plc
1.08% Foreign & Colonial Inv Trust
1.05% Intermediate Capital Group
1.05% Weir Group
1% Bellway
.96% Tate & Lyle
.96% Wood Group(John)
.94% Travis Perkins
.93% Gvc Hldgs Plc
Source: Trustnet

Sector breakdown

Financials 36.00%
Industrials 23.00%
Consumer Services 15.00%
Consumer Goods 6.00%
Mutual Funds 5.00%
Health Care 4.00%
Basic Materials 3.00%
Oil & Gas 3.00%
Technology 2.00%
Utilities 1.00%

Constraints

VP 12.00.

Key Investor Information - Income

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Key Investor Information - Accumulation

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