Hsbc Isa

mda99das

Hi there I have an HSBC stocks and share ISA

This was started in April 2002.

I have had a 16% growth over 3 years.

I am thinking of taking the money and putting it in savings.

My ISAs are invested in UK and European blue chip companies.

I feel that there are tough times ahead. The FTSE has done really well in 2005, and I dont think that this growth can be sustained.

I feel we are due a recession pretty soon.

Can anyone offer any advice?

Also How have HSBC performed in realtion to other ISAs? I can seem to find any sites that show performance.

cheers

dunstonh

I feel that there are tough times ahead. The FTSE has done really well in 2005, and I dont think that this growth can be sustained.

UK has been poor performing for many years now. However, Emerging Europe has great potential.

Can anyone offer any advice?

No, we can't offer advice. We can only offer speculation and opinion. However, your opinion is at odds with other professionals who give their opinions in these areas.

Also How have HSBC performed in realtion to other ISAs?

You are asking how has your tax wrapper compared to identical tax wrappers... exactly the same would be the answer.

What you need to ask is how have your fund(s) compared with other funds in the same sector(s) and we would need to know your fund names to do that.

As a rule of thumb, bank funds tend to be amongst the worst performers. Although they will usually have exceptions here and there. HSBC are amongst the better of the banks though. Possibly as they do market their products to independents and not just the average bank customer who wouldnt know any better.

It has to be said that 16% over 3 years is pretty poor. I have just pulled up HSBCs range of funds and there are not many that have fallen below 16% in 12 months, let alone the last 36 months. Are you sure you have your information correct?

mda99das

I invested 7k,

They took a fee just shy of £300, and the ISAs are just over 8.5k


which is circa 16.5% growth over 3 years. Where did you obtain the figures for HSBC performance? Was it idependant?

dunstonh

Where did you obtain the figures for HSBC performance? Was it idependant?

As an IFA, I pay for software which gives me information on all funds in the uk. Free sites are available, such as trustnet. However, for my purposes, they are not sufficient. Should be for you though.

Give us the names of the funds you are in and one of the regulars will post a link for that fund.

Your rate of return does seem very low for 3 years. Especially considering the sectors you are invested in (UK/Europe). HSBC do run a number of UK/Euro funds. For example, the HSBC European Index fund has grown by 15.37% a year over the last 3 years. Thats 53.70% if done Dec 2002.

mda99das

Hi thanks for your help.

I had a hunt arround, and it is invested in the following:

HSBC Investments:

50% in European growth
50% in UK growth

Is this the correct link?

http://www.trustnet.com/ut/groups/?group=hsbc_if

I am new to this, I dont have a finance background, and have very limited knowlege of the financial world picked up mainly through the media.

cheers

dunstonh

European Growth

Out of 210 european funds, it came 137th over 3 years. It grew by 14.58% p.a. average totalling 53.40% growth overall.

£3500 in that should have grown by £1869

Best fund in that sector grew by 27.30p.a. average over those three years with the worst 11.22%pa. average. So, 14.58% with the HSBC is at the lower end.

UK Growth

Out of 664 UK (all companies), it came 387th over 3 years (note that funds after 508th place were zero as they were not available 3 years ago. So its really 387th out of 507th) . It grew by 12.64% p.a. average totalling 35.00% growth overall.

£3500 in that should have grown by £1225

Best fund in that sector grew by 36.06% p.a. average over those three years with the worst 8.27%pa. average. So, 12.64% with the HSBC is at the lower end.

Summary

So, in your case, the usual case of bank funds performing below par has come true. Although performance should be better than what you have on your figures. When was your last valuation? Its been a good month and perhaps your figures are out of date. Or perhaps the charges from HSBC through the branches are more than what they offer through the independent market (not uncommon with banks. Both Barclays and LTSB do. I don't know about HSBC).

No-one knows which fund manager is going to be best at the end of the day. However, it was noticeable that the same top fund management names (brand names to me but unknown to you probably) were the top performing funds as a majority.

Although no-one here can recommend what you do. I would suggest you investigate using a fund supermarket and transfer your holdings to them and pick 7-8 funds from the top rated (rated as in reputation) fund managers and spread your money amongst them in a way that is appropriate to your risk profile. If you are unsure what your risk profile is any IFA can help you in that area or if you like, I can email you a risk profile questionnaire which asks 9 questions and gives you mutliple choice answers. Each has a score which you tot up at the end. I've emailed it to a other forum members on request in past. If you want it, PM me with your email address.

mda99das

Thanks for your help Dunstonh. They were last valued on wed, when I put a sell order through @ 8.6k.

The only charge that I have incurred so far was £276 when I first opened the ISA, I have taken this charge into consideration when working out the return.

I have sent you a private msg regarding the risk profile questionaire.

Thanks for your help.