HSBC Global Strategy Vs Vanguard LifeStrategy

Green.Lander

Hello, I have a HSBC GS balanced and did not have to open a bank account went via fidelity.

jicms

Alexland said:

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.

Thank you.
Vanguard and HSBC only offer their own products so the only advantage of going via another platform is if for example I choose to invest in both to keep them in one place and possibly to avoid the need for an HSBC C/A?
There is no extra charge to set these up via another platform such as iWeb or II?

Alexland

Vanguard Investor platform only offer their own funds but it is very cheap at 0.15% pa.

HSBC Investment Centre offer their own funds (plus a few other fund managers) at 0.25% pa but you need a qualifying savings or bank account with them.

HL, BestInvest and Fidelity offer lots of fund managers (including Vanguard and HSBC) at 0.45%, 0.40% and 0.35% pa respectively.

iWeb and II also offer lots of fund managers (including Vanguard and HSBC) but have fixed (not percentage) charges so only suitable for larger (or also in the case of iWeb, inactive) accounts. For example iWeb charges £100 account setup then £5 for each buy or sell trade. II have a fixed fee of £120 pa but include some trade credits. Fund trading is no extra charge on the above percentage platforms.

Some like AJ Bell YouInvest are hybrids offering lots of choice for 0.25% but charge £1.50 for fund trades.

So on a small account it comes down to if you want to pay more for a bigger selection of fund managers. On a large account you get the bigger selection anyway with a fixed price platform.

Either way you pay the same fund management cost (unless HL or Fidelity have negotiated a special discount class but that tends to be on the more expensive funds not VLS or HSBC GS)

jicms

I'm going to start with £20k in the HSBC GS then put next year's £20k ISA allowance into Vanguard LS so I guess they're very small accounts.
I doubt I'll want to add other funds, just top HSBC/Vanguard up annually. 
Will I really save by using a platform rather than going direct especially as Vanguard fees are lower?  Should I go to Vanguard direct and use a platform for HSBC as it's cheaper for  trading.

jicms

I've looked into iWeb and as I won't be trading very often looks like they will be the best option. 
I've realised HSBC GS Balanced offers both Accumulation and Income.  The Acc is the one to go for to leave alone for 5-10 years?

[Deleted User]

Yes, accumulation is better. Less hustle. And the overall performance should be marginally better as there is no delay on reinventing distributions. 

garmeg

Deleted_User said:

Yes, accumulation is better. Less hustle. And the overall performance should be marginally better as there is no delay on reinventing distributions. 

In a taxable account, Income units may be simpler. Accumulation units OK for SIPP and ISA though.

jicms

Thanks. Both will be ISAs.

[Deleted User]

jicms said:

I'm going to start with £20k in the HSBC GS then put next year's £20k ISA allowance into Vanguard LS so I guess they're very small accounts.
I doubt I'll want to add other funds, just top HSBC/Vanguard up annually. 
Will I really save by using a platform rather than going direct especially as Vanguard fees are lower?  Should I go to Vanguard direct and use a platform for HSBC as it's cheaper for  trading.

Don’t understand your question. 

You do need a platform. Can’t avoid having one.  Its an account you use to buy assets.  

You can’t use Vanguard’s platform for HSBC products. If you want Van products, Vanguard’s platform will work very well. Otherwise you need another platform. 

jicms

I'm going for HSBC GS initially which I do understand I need a platform e.g. iWeb. I was just unsure whether to use them for Vanguard or whether to keep them separate and go direct.  I've seen a table comparing costs so seems it won't cost more if I use iWeb. https://pensioncraft.com/vanguard-vs-iweb-which-is-the-cheapest-isa-platform/