HSBC Income funds

Bluepatrick

What on earth has happened at the HSBC Income Fund C (B80L0G4)   and    HSBC UK Growth and Income Fund C (B86PKV5) ?

I have held investments in both funds for years, but in 2020 the performance took a wild downward turn on two occasions and my investments dropped considerably.

The performance shown on the HSBC website does not reflect this drop.

In December 2020, HSBC appointed two new managers for the funds.

In July 2021 both funds have stopped accepting any further monies into the funds.

Has there been bad management at the funds that the bank is unable to repair?

I don’t understand what I should do.

eskbanker

Bluepatrick said:

What on earth has happened at the HSBC Income Fund C (B80L0G4)   and    HSBC UK Growth and Income Fund C (B86PKV5) ?

I have held investments in both funds for years, but in 2020 the performance took a wild downward turn on two occasions and my investments dropped considerably.

The performance shown on the HSBC website does not reflect this drop.

There was obviously a significant drop for practically all investments when Covid first hit in February/March 2020, but most have long since recovered that - the first of your funds hasn't got there yet but I don't see evidence of a second 'wild downward turn' later in the year?  Which data are you seeing on the HSBC website that contradicts what you're receiving from your chosen platform?

dunstonh

I have held investments in both funds for years, but in 2020 the performance took a wild downward turn on two occasions and my investments dropped considerably.

The drops were in line with expectations and nothing unusual there.   Both are Uk equity funds. So, you would expect underperformance over the last decade and UK equity income has been poor for some time.

Both funds are not meant to be held in isolation but form part of wider diversified portfolio.  If you are holding them by themselves then it is poor quality investing.  

They are not great funds but then they never have been (bar a couple of years in the late 90s when one of them didn't do too badly).

In July 2021 both funds have stopped accepting any further monies into the funds.
Has there been bad management at the funds that the bank is unable to repair?

I don't know for sure but I think the soft closure was just to stop money going into the old out-of-date retail share classes and not the clean share classes.