| Fund Company | HSBC Global Asset Management |
| Fund Type | Canadian Equity |
| Rating | D |
| Style | Blend |
| Risk Level | Medium |
| Load Status | Optional |
| RRSP/RRIF Suitability | Fair |
| TFSA Suitability | Fair |
| Manager | HSBC Global Asset Management |
| MER | 2.02% |
| Code | HKB 497 – No Load Units HKB 3497 – Front End Units |
| Minimum Investment | $500 |
Analysis: This large cap focused offering has a portfolio that looks very much like the S&P/TSX Composite, except for a slight underweight in materials and a modest overweight position in financials. The top ten is filled with many household names including the big banks, Suncor Energy and Canadian National Railway. The investment approach has been fairly patient, with portfolio turnover averaging 20% or so for the past five years.
Performance has been unimpressive. As of May 31, the fund generated an annualized loss of 1.2% for the past five years, while the benchmark was down 0.1% during the same period. Year to date, the fund has outperformed due to its modest underweight in commodity focused sectors, and slight overweight in financials and consumer focused sectors.
Looking at the fund’s current positioning, we don’t expect its performance to stray too far from the broader market. Considering this, it is my opinion that investors are likely better off with a more actively managed fund or a cheaper, passively managed ETF over this offering.
If you are only looking for market exposure, you can access it much cheaper through an ETF of lower cost index Fund. If you want truly active management, I don’t’ believe that you will get that with this fund.