HSBC merges American Growth into tracker fund

HSBC Global Asset Management will merge its £26m American Growth fund into its £99m American Index portfolio following the former's struggle to outperform its benchmark.

The group's wholesale managing director Andy Clark says the American Growth fund has never strongly outperformed throughout its ten year history. "It has been hard to add serious value in the US and the fund has always struggled to beat the S&P 500, so we have offered investors the opportunity to switch into the Index fund," he says. American Growth has returned 5% over the five years to 31 October, compared to the S&P 500 Composite's 11.1% rise. The combined fund will trade under the American Index brand and maintain its remit as a tracker vehicle. The annual charge on HSBC's trac...