HSBC Global Strategy Vs Vanguard LifeStrategy

jicms

I'm still deciding between the Vanguard LS 60/80% and HSBC GS Balanced/Dynamic.  HSBC need me to open a current account, which they state will involve a delay, before I open the S&S ISA. Vanguard seem more straightforward.
It seems I can invest via providers such as iWeb, HL, Bestinvest etc.  Are there pros or cons in doing this? 

fronty

I'm invested in both HSBC GS and VLS, you don't have to use their platform, I use II.

dunstonh

jicms said:

I'm still deciding between the Vanguard LS 60/80% and HSBC GS Balanced/Dynamic.  HSBC need me to open a current account, which they state will involve a delay, before I open the S&S ISA. Vanguard seem more straightforward.
It seems I can invest via providers such as iWeb, HL, Bestinvest etc.  Are there pros or cons in doing this? 

HSBC do not require you to have a current account unless you are trying to buy the investment fund via the bank.. which virtually no-one does.

Are there pros or cons in doing this? 

Investment platforms have been the most common method for nearly 20 years.

[Deleted User]

HSBC’s standard investment platform is called InvestDirect. It requires a current account. Trades settle from the current account. Works very well. The trading platform is very dated and cumbersome but not a big deal unless you do a lot of trading. 

The other minor advantage is that if you keep some of your investments with HSBC, you get HSBC Premier current account which has lots of perks. 

L9XSS

I use Vanguard. I’m a novice investor but really like it. I hold a range of ETFs (Asia and North America). VLS 80/20 amongst a number of others (6 in total to balance risk).
As always the information on the forum is excellent and worth reading and re reading. I’ve educated myself regarding pensions from this forum alone, having always had a passive interest (work pension), I now have SIPP as well.

Alexland

jicms said:

I'm still deciding between the Vanguard LS 60/80% and HSBC GS Balanced/Dynamic.  HSBC need me to open a current account, which they state will involve a delay, before I open the S&S ISA. Vanguard seem more straightforward.
It seems I can invest via providers such as iWeb, HL, Bestinvest etc.  Are there pros or cons in doing this? 

For small amounts you are best with the lowest percentage charge platform which in the case of VLS is Vanguard Investor at 0.15% and HSBC GS is the HSBC Global Investment Centre at 0.25% (but you either need a current account OR savings account exc Online Bonus Saver and Fixed Rate Saver). HSBC InvestDirect (mentioned above) is their share dealing service.

HL and Bestinvest have higher percentage charges for holding funds but offer a choice of many more fund managers. If you want this then Fidelity are cheaper.

iWeb (and II mentioned above) also offer lots of choices and have fixed setup and trade charges which can be cheaper for larger accounts where even a low percentage platform charge would be very expensive.

[Deleted User]

Alexland said:

jicms said:

I'm still deciding between the Vanguard LS 60/80% and HSBC GS Balanced/Dynamic.  HSBC need me to open a current account, which they state will involve a delay, before I open the S&S ISA. Vanguard seem more straightforward.
It seems I can invest via providers such as iWeb, HL, Bestinvest etc.  Are there pros or cons in doing this? 

For small amounts you are best with the lowest percentage charge platform which in the case of VLS is Vanguard Investor at 0.15% and HSBC GS is the HSBC Global Investment Centre at 0.25% (but you either need a current account OR savings account exc Online Bonus Saver and Fixed Rate Saver). HSBC InvestDirect (mentioned above) is their share dealing service.

HL and Bestinvest have higher percentage charges for holding funds but offer a choice of many more fund managers. If you want this then Fidelity are cheaper.

iWeb (and II mentioned above) also offer lots of choices and have fixed setup and trade charges which can be cheaper for larger accounts where even a low percentage platform charge would be very expensive.

InvestDirect is for funds as well as shares. Not sure why HSBC offers two separate platforms under different brands. 

jicms

fronty said:

I'm invested in both HSBC GS and VLS, you don't have to use their platform, I use II.

dunstonh said:

HSBC do not require you to have a current account unless you are trying to buy the investment fund via the bank.. which virtually no-one does.

Are there pros or cons in doing this? 

Investment platforms have been the most common method for nearly 20 years.

Alexland said:

For small amounts you are best with the lowest percentage charge platform which in the case of VLS is Vanguard Investor at 0.15% and HSBC GS is the HSBC Global Investment Centre at 0.25% (but you either need a current account OR savings account exc Online Bonus Saver and Fixed Rate Saver). HSBC InvestDirect (mentioned above) is their share dealing service

So many helpful replies which have raised more questions as I’m very much a novice.

• The above seems to be conflicting?
• Why is it unusual to invest directly with the provider, in this case HSBC?
• Is the only reason for using a platform to simplify things when taking out several different funds? I currently only have a Nutmeg fund. 
• Do the platforms charge a fee in addition to the fund’s charges?
• Do I need a fund manager if I’ve already chosen the Vanguard or HSBC funds?
• I only recently closed my HSBC C/A when my mortgage ended as my main account is with First Direct.
• I’m looking to invest a £20k lump sum.

Alexland

Deleted_User said:

InvestDirect is for funds as well as shares. Not sure why HSBC offers two separate platforms under different brands. 

I thought the point was you would buy Shares/ITs/ETFs etc via InvestDirect as a trading platform and OEIC funds via Global Investment Center as a funds supermarket? I can't see anything on the InvestDirect site to suggest it offers funds? I agree it would be simpler if they merged the functionality together.

Alexland

jicms said:

• The above seems to be conflicting?
• Why is it unusual to invest directly with the provider, in this case HSBC?

It's OK either way if you want to invest via the fund manager's own restricted platform (eg Vanguard Investor), a modest fund supermarket platform offering a few fund managers (eg HSBC Investment Centre) or one that offers loads of choice (HL, Fidelity, etc). Do whatever is cheapest and most convenient for what you are investing in.

jicms said:

• Is the only reason for using a platform to simplify things when taking out several different funds? I currently only have a Nutmeg fund. 
• Do the platforms charge a fee in addition to the fund’s charges?

The platform charge is to provide the online portal, customer service, payment transfers and tax wrapper and the fund manager charge is to cover the actual investment management. In the case of Nutmeg fixed allocation portfolios the Nutmeg charge (not technically a platform but close enough) is 0.45% and the fund manager charges for the various ETFs they use from Vanguard, Blackrock, Lyxor, etc average 0.17%. You don't have a 'Nutmeg fund' but a Nutmeg managed portfolio of various other fund manager's ETFs.

If you invested in VLS via Vanguard Investor the platform charge would be 0.15% and the fund charge would be 0.22%.

jicms said:

• Do I need a fund manager if I’ve already chosen the Vanguard or HSBC funds

Yes your fund manager would be Vanguard or HSBC.

You would need to use their platforms, or other platforms to get access.