HSBC Investments' two OpenFunds offerings have only taken in £2m of external assets in the five mont...
HSBC Investments’ two OpenFunds offerings have only taken in £2m of external assets in the five months since launch.
The Global Distribution and Global Return funds have taken just £1m each since launching on 9 November last year.
According to the firm’s director of wholesale Andy Clark, HSBC has seeded each offering with a further £5m, to bring each vehicle to around £6m of assets in total.
The lack of demand forced the firm to delay the launch of any further OpenFunds vehicles until at least the existing products’ first anniversary.
Both Clark and former managing director Mike Warren blamed the unusual profile of the two portfolios for the lack of demand so far.
Managed by former Axa managers James Hughes and Nicholas Pothier, the vehicles are multi-asset funds of funds with scope to invest in private equity and hedge fund vehicles along with more conventional asset classes.
Open Global Return launched with 18% divided between alternative asset classes including private equity vehicles, funds of hedge funds and commodity and resources offerings.
Global Distribution held the majority of its assets in fixed income at launch with 5% in emerging market debt, along with resources and commodities vehicles accounting for 5%.
HSBC will be staging a roadshow in June to gauge advisers' demand for a further vehicle in the range.