Changes ahoy at the HSBC Global Investment Centre
SnowMan
Posts: 3,356 Forumite
For those who don't know the HSBC Global Investment Centre (GIC) is a platform for holding ISA and non-ISA funds including the HSBC index tracking range.
I have received a letter from HSBC, dated 16th October 2012, to say that on 16th November:
a) the GIC will be 'adding a facility to allow you to transfer your existing ISAs into the GIC' and
b) the GIC will be 'adding a far wider range of funds for you to invest in' and
c) management of the accounts will transfer from HSBC Trust Company (UK) Ltd to HSBC Bank PLC.
Accounts can be accessed after the changes on Monday 19th November.
HSBC previously told me that they would be adding the HSBC class C trackers (i.e. the new clean class with a 0.1% amc rather than 0.25% amc, albeit with a 0.05% registration fee, so effectively 0.1% reduced TERs) onto the GIC on 15th or 16th November, so it looks likely that these classes will become available from then as part of the 'wider range'.
As the HSBC trackers are amongst the cheapest trackers currently available, and now that the transfer in of ISAs into the GIC will be possible, these developments are of interest to passive investors.
There is currently no official word on whether there will be any additional charge for holding the class C trackers on the GIC, although I was told on the phone a while back that no holding charge was planned.
Anyway, I've set up this thread to collate and report information on the changes as it become available.
I have received a letter from HSBC, dated 16th October 2012, to say that on 16th November:
a) the GIC will be 'adding a facility to allow you to transfer your existing ISAs into the GIC' and
b) the GIC will be 'adding a far wider range of funds for you to invest in' and
c) management of the accounts will transfer from HSBC Trust Company (UK) Ltd to HSBC Bank PLC.
Accounts can be accessed after the changes on Monday 19th November.
HSBC previously told me that they would be adding the HSBC class C trackers (i.e. the new clean class with a 0.1% amc rather than 0.25% amc, albeit with a 0.05% registration fee, so effectively 0.1% reduced TERs) onto the GIC on 15th or 16th November, so it looks likely that these classes will become available from then as part of the 'wider range'.
As the HSBC trackers are amongst the cheapest trackers currently available, and now that the transfer in of ISAs into the GIC will be possible, these developments are of interest to passive investors.
There is currently no official word on whether there will be any additional charge for holding the class C trackers on the GIC, although I was told on the phone a while back that no holding charge was planned.
Anyway, I've set up this thread to collate and report information on the changes as it become available.
I came, I saw, I melted
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Snowman,Thanks for that,I am a novice investor with some 120K in Skandia,Hargreaves,Fidelity share isa,s,i am also a Premier customer with HSBC,
I am thinking that i need to consolidate all my investments into one company,do you think it will be possible to use the HSBC option,if so will it be competative on charges,i do not have any tracker funds in my portfolio.0 -
Snowman,Thanks for that,I am a novice investor with some 120K in Skandia,Hargreaves,Fidelity share isa,s,i am also a Premier customer with HSBC,
I am thinking that i need to consolidate all my investments into one company,do you think it will be possible to use the HSBC option,if so will it be competative on charges,i do not have any tracker funds in my portfolio.
As you are an HSBC customer already it will be a simple job to set up a Global Investment Centre account just go to the HSBC GIC main page and click on the 'Register for Global Investment Centre' button.
Assuming you are already registered for on-line banking with HSBC then it will be a doddle to set up. You should be able to set it up without actually investing any money so will give you a chance to have a look at it.
I am very much a passive investor and the GIC is good for passive investors who want to invest in the HSBC tracker range.
Currently the GIC range of active funds is very limited so I doubt the GIC would be good for someone taking an active approach. Not sure if their 'wider range' will appeal to active investors in terms of choice and 'price'. But I am completely the wrong person to ask about active funds.
If you wanted to start to hold some HSBC trackers then the GIC is certainly a good way to go about it. How good will depend on whether they have a holding charge for the class C trackers.
Incidentally the terms mention that it will be possible to re-register funds onto their platform (to make them RDR compliant presumably) provided they offer that particular fund, there is nothing I can immediately see to indicate there will be any charge for doing that. The existing platform may not allow re-registration currently and may charge however.I came, I saw, I melted0 -
There is currently no official word on whether there will be any additional charge for holding the class C trackers on the GIC, although I was told on the phone a while back that no holding charge was planned.
Thanks for keeping us updated. I'm particularly interested to see how the pricing structure changes for any "clean" funds. I would be amazed if a holding fee and/or trading fees aren't introduced sometime before the end of 2013:
http://monevator.com/what-is-rdr/0 -
Thanks for keeping us updated. I'm particularly interested to see how the pricing structure changes for any "clean" funds. I would be amazed if a holding fee and/or trading fees aren't introduced sometime before the end of 2013:
http://monevator.com/what-is-rdr/
I agree with you there.
In the short term hopefully there will be no platform fee for the class C HSBC trackers on the GIC.
At some point they will have to introduce a platform fee for their non HSBC funds (or else they will not make any money on those funds after platform RDR comes in probably at the end of 2013).
I suppose it is possible that when that platform fee is introduced it won't apply to HSBC funds only non HSBC funds (I don't know if platform RDR would stop them from doing that), but I think that has to be unlikely. However I don't think they would want to scare away investors in HSBC funds on the HSBC platform by too high a platform charge on those funds.
If there is going to be a platform fee for holding the HSBC class C trackers on the GIC, post platform RDR, then it would make sense for HSBC to apply that now (to avoid the complications when it was later introduced). An alternate view might be that by temporarily not applying a platform fee on the class C trackers they could attract funds onto the GIC.I came, I saw, I melted0 -
Hopefully HSBC will realise that such charges, if significant, could end up with some customers leaving the bank altogether, e.g if their tracker investments were qualifying them for free Premier banking.0
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Hopefully HSBC will realise that such charges, if significant, could end up with some customers leaving the bank altogether, e.g if their tracker investments were qualifying them for free Premier banking.
Good point, was thinking of applying for an HSBC Premier bank account myself, at the moment I bank with First Direct
One of which isHSBC Premier benefits are available without a monthly account fee if you meet any of the following criteria:
I don't see any danger of them introducing an across the board platform charge right now as they would have had to tell us about it now (to implement it with the 16th November change) because they would have to have given 30 days notice of its introduction.You have either joint savings or investments of at least £50,000 with HSBC in the UK. We request that your main income is paid into your HSBC Premier Bank Account;
Of course any NEW funds (such as the class C trackers) coming onto the platform could have a holding/platform fee from 16th November.I came, I saw, I melted0 -
I took a keen interest in this, however, the following statements in their website are unclear:
In the section How Much Does It Cost
There is no charge for setting up the Global Investment Centre service.
There is no initial charge on any funds in the Global Investment Centre.
An annual management charge and other expenses will also apply.
In the Top 5 FAQ it states:
There is an initial charge of no more than 1% when purchasing funds through our Global Investment Centre.0 -
nxdmsandkaskdjaqd wrote: »I took a keen interest in this, however, the following statements in their website are unclear:
In the section How Much Does It Cost
There is no charge for setting up the Global Investment Centre service.
There is no initial charge on any funds in the Global Investment Centre.
An annual management charge and other expenses will also apply.
In the Top 5 FAQ it states:
There is an initial charge of no more than 1% when purchasing funds through our Global Investment Centre.
I don't think there is an initial charge for any fund available through the GIC currently.
I don't think there has ever been an initial charge for the HSBC trackers.
I think some of the active funds might have had a 1% initial charge at some point, but that has now been removed.
They obviously haven't updated that FAQ.I came, I saw, I melted0 -
HSBC have made a last minute decision to delay the update due this weekend and the following message has appeared on their website today after you have logged into GIC.Important notice
We informed you recently about improvements to the Global Investment Centre including changes to your Terms and Conditions from 16 November 2012.
These changes have been delayed and will now be in place for 3 December. Your new Terms and Conditions will come into effect from Friday 30 November and the updated service will be available to you on Monday 3 December. Until then the current Terms will apply.I came, I saw, I melted0 -
The Global Investment Centre updates took place over the weekend.
While a number of new funds have been added there is no sign of the HSBC clean C class (0.1%) trackers.
I rang them up to ask them when the clean C class trackers would be made available and was told the following:-
- the clean C class should be available around January 2013.
- they are now telling me there is going to be a platform charge for holding the clean classes on the GIC of 0.29% per annum.
- it will be possible to transfer away from the GIC now without charge.
- it will be possible to re-register away (in specie transfer) from January without charge.
- it appears it will be possible to continue to hold the dirty class (0.25%) of HSBC funds as legacy business on the GIC without additional platform fee
With the 0.29% pa platform fee (assuming this is right) the clean class of HSBC trackers will be hideously expensive.
For example the HSBC FTSE all share tracker has an OCF of 0.28% for the dirty class and 0.18% for the clean class.
Allowing for the platform fee the clean class will cost 0.47% pa to hold on the GIC compared with the 0.28% pa for continuing to hold the dirty class on a legacy basis
I came, I saw, I melted0
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