HSBC Investments is set to unveil a retail property portfolio as part of its OpenFunds range. The firm declined to comment, but Fund Strategy understands that HSBC Open Global Property will be launched at the end of November, subject to regulatory approval.
The fund of funds will be the third in the range, following the launch of Open Global Return and Open Global Distribution last November. The fund will be run by HSBC’s British-based real estate multi-manager team. The seven-strong group, headed by Guy Morrell, transferred from HSBC Specialist Investments last month.
The team is not running a paper portfolio but the fund will contain 10-15 holdings, including stakes in real estate investment trusts (Reits) and physical property funds. Bricks and mortar exposure will be limited to a maximum of 80%. Following the style of the multi-asset OpenFunds products, the property fund will adopt a bottom-up, global approach to investing. HSBC is recruiting additional New York and Hong Kong-based members of the team.
The fund, which will be seeded at launch, has a minimum initial investment of £1,000, or £50 a month. The initial charge is 4%, with initial commission of 4%. The annual management fee is 1.25%, with a trail of 0.5%.
Morrell (pictured), who will be named lead manager, reports to Joanna Munro, HSBC Investments’ global chief investment officer. He joined HSBC in 2004 to lead its indirect property fund management business. Before that he was chief investment officer for global property at Henderson Global Investors and a member of Prudential’s property research team.