HSBC Global Asset Management is positioning a series of its multi-asset funds as retirement savings range for the defined contribution pensions marketplace.
The Retirement Range consists of a series of multi-asset ‘World Selection’ portfolios. First launched in 2009, and now sold in more than 20 markets around the world, “World Selection” is HSBC’s multi-asset flagship fund range, with assets under management of £7.7 billion at December 2014. Originally designed for investors seeking portfolio diversification through a single investment, the portfolios provide exposure to a range of asset classes, including equity and bond markets across the world.
HSBC says the range meets the needs of funds re-assessing their default funds and increasingly looking to provide solutions that are more tailored for their members. The Retirement Range consists of three risk-rated portfolios, Cautious, Balanced and Dynamic, to provide choice for members with different attitudes towards risk, and the ability to change their risk level should they wish.
Annual management charges stand at 0.25 per cent for each portfolio. The “ongoing charges figures” will vary depending on the underlying asset mix, but are targeted to be between 0.46 per cent and 0.53 per cent.
The portfolios offer dynamic asset allocation monitored on an ongoing basis and adjusted in response to changes in valuation metrics or market conditions.
HSBC Global Asset Management head of wealth portfolio management Caroline Hitch says: “We have a well-established institutional-style investment approach, which is highly suited to the needs of trustees, sponsors and DC scheme members. The World Selection portfolios offer dynamic asset allocation, cost-effective portfolio construction and a robust investment process, all packaged together at a price that we believe offers great value. This is a solution that will work hard for scheme members.”