HSBC Stocks & Shares Tracker ISA - Are fees too high?

weaver33

You were ahead of me Alex.

So if I have got what you're saying correctly, I can transfer my existing ISA set up with HSBC to Halifax ONLY if Halifax offer the EXACT same fund I am currently investing into right?

I have checked through the 2000 or more fund options available with Halifax, and it looks like both my existing funds are there (HSBC FTSE 250 Index Fund C (A) and HSBC FTSE 250 Index Fund C (I) )

BUT....

If I want to maybe diversify my ISA a bit more and start investing in maybe the HSBC FTSE All World tracker then to save fees on trade costs, it would be advisable to start the new fund with HSBC first before transferring the whole new ISA package across?

Is that right?

But won't HSBC charge me to start investing in a new fund?

System

Why the HSBC loyalty? Why not just one global tracker?

Alexland

You can only 'in specie' transfer if both offer exactly the same investment else you would sell your investments to an ISA cash balance before doing the transfer.

With HSD you pay £12.50 pa plus £2 per regular trade so adding to 3 funds would cost £6 per month. It would cost even more if you did adhoc trades to rebalance them back to 1/3rd ratios.

I suggest you only need one fund for example either HSBC FTSE All World, HSBC Global Strategy (Dynamic or Balanced) depending on your volatility tolerance and proximity to withdrawal date. Assume you would want the Accumulation versions to avoid reinvestment trade costs unless you are withdrawing income.

Last time I looked the FTSE All World wasn't available on the HSBC Investment Centre but the GS series were. HSD seem to have a better choice of HSBC funds!

iWeb (operated by HSD) is also good at £25 setup and £5 per trade but if contributing regularly that's £60 pa.

Once on HSD you would be able to choose other fund managers such Vanguard and BlackRock although their passive global equity and multi asset funds are about the same cost and quality as the best HSBC funds.

Alex

weaver33

Economic wrote: »

Why the HSBC loyalty? Why not just one global tracker?

Good point well made!

I have received good performance from the HSBC FTSE250 Tracker ISA in relation to my limited idea of what constitutes successful returns on investment.

But, not particularly loyal.

ColdIron

weaver33 wrote: »

Investment Funds ISA HSBC FTSE 250 Index Fund C (A) and also in the same package HSBC FTSE 250 Index Fund C (I).

Why do you have both the (A)ccumulation and the (I)ncome classes? Is it to pay your current platform fees (the 0.25% service cost)? The other fees are internal to the fund. Since HSD do not charge an annual platform fee you might want to just use either Acc or Inc and not both for whatever fund(s) you choose

Alexland

ColdIron wrote: »

Since HSD do not charge an annual platform fee you might want to just use either Acc or Inc and not both for whatever fund(s) you choose

HSD do charge an annual £12.50 fee on S&S ISAs so you would need to maintain a small cash balance to pay it.

ColdIron

Alexland wrote: »

HSD do charge an annual £12.50 fee on S&S ISAs so you would need to maintain a small cash balance to pay it.

Oops forgot that, thinking of IWeb I guess

System

weaver33 wrote: »

Good point well made!

I have received good performance from the HSBC FTSE250 Tracker ISA in relation to my limited idea of what constitutes successful returns on investment.

But, not particularly loyal.

Have you actually compared the FTSE250 with the FTSE ALL World?
Investment 3 months 6 months 1 year 3 years 5 years
HSBC FTSE All World Index C Acc 4.29% 12.01% 8.33% 40.03% 84.7%
HSBC FTSE 250 Index C Acc 4.31% 7.37% 0.54% 21.94% 46.22%
Maybe you should pause and give this some thought.

weaver33

ColdIron wrote: »

Why do you have both the (A)ccumulation and the (I)ncome classes? Is it to pay your current platform fees (the 0.25% service cost)? The other fees are internal to the fund. Since HSD do not charge an annual platform fee you might want to just use either Acc or Inc and not both for whatever fund(s) you choose

I have been an idiot:(

About two years ago the fund was changed and I didn't act on anything due to ignorance on my part, and found myself with both Income and Accumulation Funds.

How do I go about getting HSBC to invest my monthly funds into just the ACC Fund?

Are they likely to charge me?

Can the fund invested in the (I) Fund be merged into the (A) ?

weaver33

Economic wrote: »

Have you actually compared the FTSE250 with the FTSE ALL World?
Investment 3 months 6 months 1 year 3 years 5 years
HSBC FTSE All World Index C Acc 4.29% 12.01% 8.33% 40.03% 84.7%
HSBC FTSE 250 Index C Acc 4.31% 7.37% 0.54% 21.94% 46.22%
Maybe you should pause and give this some thought.

Thanks Economic.

I was acting on an investment strategy I read about on the Motley Fool about 8 years ago which showed how the FTSE250 outperformed the FTSE 100 and FTSE All Share.

I started investing then.

Clearly the FTSE All World Index C Acc was a better option.