HSBC tracker fund price change
Adam Laird | Thu 12 November 2015
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HSBC have announced a series of fee changes on their range of tracker funds.
From 14 December, the ongoing charge on a number of HSBC's funds will be increased.
With tracker funds, the index company (e.g. FTSE) charges a fee to the fund manager tracking the index (in this case, HSBC). Previously, this fee was paid by HSBC rather than the fund but from next month, this fee will be paid by the fund itself.
This means the ongoing charge for a number of HSBC’s tracker funds will increase by 0.01%. This includes the HSBC FTSE 250 Index fund, which is currently on the Core Tracker list.
Find out more about the Core Tracker list »
| New fund charges | ||||
|---|---|---|---|---|
| Fund name | Unit type | Current ongoing charge | New ongoing charge | Difference |
| HSBC FTSE 100 Index | Unbundled Class C | 0.17% | 0.18% | 0.01% |
| HSBC FTSE 100 Index* | Inclusive Retail | 0.27% | 0.28% | 0.01% |
| HSBC FTSE 250 Index | Class S | 0.07% | 0.08% | 0.01% |
| HSBC FTSE 250 Index* | Inclusive Retail | 0.27% | 0.28% | 0.01% |
| HSBC Japan Index | Unbundled Class C | 0.20% | 0.21% | 0.01% |
| HSBC Japan Index* | Inclusive Retail | 0.30% | 0.31% | 0.01% |
| HSBC Pacific Index | Unbundled Class C | 0.24% | 0.25% | 0.01% |
| HSBC Pacific Index* | Inclusive Retail | 0.35% | 0.36% | 0.01% |
| HSBC UK Gilt Index | Unbundled Class C | 0.19% | 0.20% | 0.01% |
| HSBC UK Gilt Index* | Inclusive Retail | 0.29% | 0.30% | 0.01% |
*Thorough Hargreaves Lansdown, an additional 0.1% discount applies. This is paid as a Loyalty Bonus. Loyalty bonuses are tax-free in an ISA or SIPP. However, they may be subject to tax in a Fund & Share Account which would, in effect, reduce their value and increase the net ongoing charge.
For three funds, HSBC will be reducing fees - this applies from 16 November.
| New fund charges | ||||
|---|---|---|---|---|
| Fund name | Unit type | Current ongoing charge | New ongoing charge | Difference |
| HSBC American Index | Unbundled Class C | 0.18% | 0.08% | -0.10% |
| HSBC American Index* | Inclusive Retail | 0.28% | 0.18% | -0.10% |
| HSBC European Index | Unbundled Class C | 0.21% | 0.10% | -0.11% |
| HSBC European Index* | Inclusive Retail | 0.31% | 0.20% | -0.11% |
| HSBC FTSE All-Share Index | Unbundled Class C | 0.17% | 0.07% | -0.10% |
| HSBC FTSE All-Share Index* | Class A Institutional | 0.27% | 0.17% | -0.10% |
*Thorough Hargreaves Lansdown, an additional 0.1% discount applies. This is paid as a Loyalty Bonus. Loyalty bonuses are tax-free in an ISA or SIPP. However, they may be subject to tax in a Fund & Share Account which would, in effect, reduce their value and increase the net ongoing charge.
HSBC's actively managed funds and ETF range will not be affected.