(November 29 – 09:50 ET) – HSBC Investment Funds (Canada) Inc. is the latest entrant into the popular RRSP-eligible foreign equity fund game. It is adding two new funds to its existing 14 fund lineup.
The new HSBC Global Equity RSP Fund will be based on the HSBC Global Equity Fund, which itself invests primarily in units of other HSBC funds. The HSBC U.S. Equity RSP Fund will be based on the HSBC U.S. Equity Fund which invests directly in U.S. equities.
While admitting that these funds do have added costs, Steve Baker, president of HSBC Investment Funds, argues, “This modest premium is more than worthwhile for an RRSP-eligible foreign fund due to the potential benefits derived from increased global diversification. Over the longer term, Canadian markets have significantly lagged behind international markets. For example, $10,000 invested in 1989 would have risen to $22,500 this year if invested in the TSE 300, $36,300 in the MSCI World Index, and $61,200 if invested in the S&P 500 Index.”
With these two new funds, HSBC now has 16 mutual funds managed by HSBC Asset Management. Worldwide HSBC Asset Management has about $98 billion in assets under management.
-IE Staff
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