HSBC Global Strategy Dynamic via AJBell

David_66

Hello
I am looking for the HSBC Global Strategy Portfolio Accumulation with a 80% equity split similar to VLS80. On the HSBC website they show HSBC Global Strategy Dynamic as having a 80% equities mix. However when I find the fund through AJ Bell who I would be purchasing through it shows the stocks allocation as 87.3% and bonds as only 6.66%.
Sorry I'm unable to include the links.
Thank you

Tassie_Devil

Is it this one?


http://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00000OOBE&tab=3

David_66

Hello
Yes that's the one.

On the HSBC website it shows the Global Strategy Dynamic Portfolio as having 80% equities, 14% bonds and 5% alternatives

Mothman

According to HSBC's own factsheet the bond allocation in the Global Stategy Dynamic was 9.19% as at 31st July, and so the allocation you refer to may relate to a different date


All the Global Strategy funds are risk targeted and whilst the undelying investments are passive, HSBC are free to change the asset allocations as they see fit to keep the fund within the targeted risk level for that paticular fund i.e. cautious, balanced or dynamic, which means they will never have a fixed equity allocation like the VLS funds which have a different mandate..

Thrugelmir

The fund remit seems clear enough.

To provide capital growth through investment in a broad range of asset classes across global markets, with a bias towards equities. This is one of a range of actively managed Global Strategy Portfolios offered at five different risk levels. The Fund is rated as 4, where 1 is a lower level of risk and 5 is a higher level of risk.

Bonds offer little upside in the current market,

DrSyn

You have stated a fact.

You have not asked a question.

So I will explain some things which you may not understand.

Both VLS 80 & HSBC GD are Global Multi Asset Funds. However they work differently. Also there portfolios are a little different.

VLS: Here you chose the share/bond split you want and they will re-balance to maintain that split. You have to except the market risk that goes with that split.

The VLS fund portfolio consists of only Shares and Bonds. They have a higher UK content than HSBC has.


HSBC GD: Here you chose what risk you want at the start (i.e. Dynamic) and they will re-balance to maintain the risk chosen by you. That will mean the % in the different parts of the funds portfolio alter with time as they maintain that risk level.

The HSBC GB fund portfolio portfolio consists of Shares,Bonds,Alternatives and Cash. with a much smaller UK content than VLS.

The HSBC fund split was for 6 September 2018.

The AJ Bell fund split was for 31 August 2019


Hope this may be of some interest to you.

David_66

Thanks for all the replies, particularly Drsyn's .
It is a bit weird that the one site that gives the year old out of date info is HSBC's own website.

Prism

David_66 wrote: »

Thanks for all the replies, particularly Drsyn's .
It is a bit weird that the one site that gives the year old out of date info is HSBC's own website.

I would imagine its entirely on purpose to provide a similar initial view to Vanguards VLS80

bowlhead99

David_66 wrote: »

Thanks for all the replies, particularly Drsyn's .
It is a bit weird that the one site that gives the year old out of date info is HSBC's own website.

I don't know where DrSyn was getting the idea that HSBC had given an allocation breakdown from mid-September 2018. They don't produce an asset allocation every day of the week - factsheets and reports showing allocations between asset classes would only be with the data as of a month end or quarter end. They don't release this on a daily basis to give an asset class breakdown as of 6 September. And perhaps his 2018 was a typo for 2019.

In HSBC's July factsheet, they had ~9% in corporate bonds which is consistent with what Trustnet shows. Within info for the end of Q2(June) on HSBC's adviser pages, they were showing that the bond allocation for Dynamic was 12% against a target of 9%, with equities at 82% vs an 83.6% target

Not sure how Morningstar are showing an allocation for 31 August (bonds 8.8% gross, 6.7% net) if HSBC haven't issued the official factsheet yet, it depends how their data feed works and when it's updated. But there will be differences in what is published on Morningstar compared to an HSBC factsheet anyway, based on how their categories work.

For example, the HSBC fund holds an iShares fund which tracks global property shares (REITs and similar). HSBC say this approx 5% is their 'property' allocation, while Morningstar will bucket it under 'shares' because the iShares fund invests in 'shares' of property holding companies, rather than being a direct holding of properties. Likewise what HSBC say is a currency hedged bond allocation may be a mix of long and short bonds of different types with the smaller holdings not appearing in the 'top 10' holdings.

Prism

bowlhead99 wrote: »

I don't know where DrSyn was getting the idea that HSBC had given an allocation breakdown from mid-September 2018. .

https://www.hsbc.co.uk/investments/isas/hsbc-global-strategy-portfolios/#dynamic

I reckon they haven't updated it on purpose to make it look like VLS80, at least for that initial glance

bowlhead99

Prism wrote: »

https://www.hsbc.co.uk/investments/isas/hsbc-global-strategy-portfolios/#dynamic

I reckon they haven't updated it on purpose to make it look like VLS80, at least for that initial glance

Ah thanks for the link which I hadn't seen, I was thinking he meant there was an actual asset allocation for a particular date being shown, when it's just a sample strategic allocation at a point in time, which they won't bother to update particularly often, because updating websites frequently is a pain and they already say that it charges from time to time.

As mentioned, the adviser site brochure info does have a Q2 2019 target allocation laid out against actual allocations.

With this type of product you shouldn't really need to monitor it in any great detail because the whole purpose of the product is that they maintain allocations for you (but don't keep them static), with the aim of delivering a sensible result.