UK financial services provider HSBC Investments has announced that it has added 15 funds from external providers available within its bundled defined contribution proposition, offering greater pension choices for consumers.
HSBC Investments offers core and higher return funds from external providers including BlackRock, JP Morgan, Baillie Gifford, Newton and M&G.
According to Peter Cox, head of defined contribution (DC) services at HSBC Investments UK, consultants are seeking providers who can offer a broader choice of funds to pensions schemes and their members, while providing a high level of service, financial strength and a quality brand.
He added: HSBC Investments has watched the trend toward open architecture unfold in recent years and is in a position to respond to industry concerns about what makes for an appropriate and sustainable fund offering. There is increasing recognition that fund proliferation is becoming (or in some instances has become) a problem for providers, fund managers, employers/trustees and members. We have responded to the need for more choice, but not at the cost of proliferation, which is both confusing and damaging.
As a result, the finance firm is offering an additional 15 funds from the selected providers, alongside the group’s own range of products. External funds included on the platform were chosen through a structured selection process aimed at meeting key requirements.
HSBC in the UK is a significant pension provider, with 750,000 clients, including 13,000 schemes and associated assets of more than GBP14 billion.