Our conviction surrounding HSBC Japan Index is built around the broad representative beta exposure offered.
While its cheapest share classes merit a Morningstar Analyst Rating of Gold, the fee charged by the more expensive retail share classes (income and accumulation classes) is simply too high and has prompted a downgrade of the Morningstar Analyst Rating to Silver from Gold.
With an ongoing charge of 0.29%, the retail share class of the fund is significantly more expensive than directly comparable peers in the Japan large-cap equity Morningstar Category.
The fund offers broad and representative cap-weighted exposure to Japanese large-cap equities. With around 500 constituents, including a number of mid-caps and small caps, the FTSE Japan Index stands as a better proposition than the more popular but narrower MSCI Japan Index.
- Kenneth Lamont
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