HSBC FTSE 250 Index R

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

  • 173.90p
    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.

  • 274.10p
    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.

  • 2.70%
    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 26 November 2020

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 £1,045m
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

  • 15/16 -0.17%
  • 16/17 -0.25%
  • 17/18 0.59%
  • 18/19 -0.06%
  • 19/20 -0.86%

Bestinvest MRI

  • 3 years -0.11%
  • 5 years -0.15%
  • Career -0.11%
  • 3 years 38.70%
  • 5 years 25.50%
  • Career 21.20%

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 21.9 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 - 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.

Key Investor Information - Income

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Key Investor Information - Accumulation

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