HSBC Global Asset Management is to cut the annual management charge across its seven index tracking funds in response to new competition from US fund management giant Vanguard.
The funds, which track UK and overseas indices, now boast total expense ratios (TER) of between 0.27 per cent and 0.37 per cent. The reduced charges apply to new and existing investors and take effect from 1 September 2009. The new charging structure is available for investments as low as a £1,000 lump sum or £50 regular savings.
HSBC's move comes in response to US rival Vanguard, which recently .