Products August 24, 2009

HSBC Enters European ETF Market

HSBC will launch Tuesday the HSBC FTSE 100 ETF, the bank's first European exchange-traded fund (ETF).

Reported by

Listed on the London Stock Exchange, the new ETF (ticker: HUKX) is designed to track the performance of the FTSE 100 index, according to an announcement.

The HSBC FTSE 100 ETF, domiciled in Ireland, is registered for sale in the UK, and a number of additional registrations are planned across Europe. HSBC Global Asset Management will be the investment manager and HSBC Global Markets will ensure liquidity as a market maker. The total expense ratio will be 0.35%, according to the firm.

In making the announcement, HSBC noted that, as of May 2009, ETFs represent around 2% of the European mutual fund market compared to 6% in the US, according to European data from  EFAMA and BGI and US data from the Investment Company Institute (ICI). HSBC said it envisage “substantial growth” as ETFs “become an important part of the investment toolkit.”

HSBC’s entry into the European ETF market complements its business in Asia, through Hang Seng Bank, majority owned by HSBC, and HSBC Global Asset Management in Hong Kong.  Together they have almost 8% of the regional ETF assets under management, according to the firm.  Earlier this month Hang Seng Bank’s ETFs became the first Hong Kong-listed funds to also be listed in Taiwan.

Beyond Europe, HSBC plans to leverage its global capabilities to extend its ETF business across Asia, Latin America, and the Middle East.

“We are intent on complementing our existing set of investment capabilities by developing a range of ETFs that can meet the main investment requirements of the institutional, wealth management, and retail segments,” said Mark McCombe, CEO of HSBC Global Asset Management.

“ETFs are one of the fastest-growing areas in the investment management industry and we aim to be among the leading providers within a few years,” said Samir Assaf, head of Global Markets at HSBC.”

 



Deals & People August 24, 2009

Former MSSB Advisers Start Independent Firm

Three former representatives of Morgan Stanley Smith Barney (MSSB) have left the firm to form Three Bridge Wealth Advisors in Menlo Park, California.

Reported by

Eric Thurber, Fred Molfino, and Brett Sharkey will serve as managing directors of the independent advisory firm, which offers wealth planning to high-net-worth individuals and families. The company said it will have an “emerging focus on retirement plan services,” specializing in defined contribution and defined benefit plans.

The principals of Three Bridge previously represented The Venture Group at Morgan Stanley Smith Barney, advising on more than $740 million in assets for the venture capital and private equity communities in and around Silicon Valley, according to an announcement from Three Bridge.
 
“The independent structure is the best way we know to serve the unique investment needs of our extraordinary clients,” said Molfino. “As a boutique firm, Three Bridge is in a position to provide a level of service that’s simply not attainable at a larger wirehouse brokerage.”
 
While the team has specialized in providing institutional services to venture capital and private equity firms, it has expanded its practice over time to include personal wealth management services to individuals and retirement plan services, the firm said.
 
Three Bridge has chosen Charles Schwab & Co. as its custodian. 

While most wirehouse advisers are staying put, industry research has noted the trend of advisers going independent. The latest research from Cerulli Associates showed that wirehouses are losing advisers more than most other channels of advisory firms (see “Wirehouses Feel Some Threat of Independents”).

More information about the firm is available at threebridgewa.com.


«