HSBC Global Strategy Balanced Portfolio

solidpro

https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/h/hsbc-global-strategy-balanced-portfolio-c-accumulation/charts

I've got some money in this for 2 years. It's the only fund I've got money in that has alway been in the red. 

On one hand, thinking I should stay in it for 10 years and hope for the best. On the other hand I should just stick it in VS100 like all the other money in this account.

Thoughts?

Albermarle

The question is why did you invest in this multi asset fund in the first place, as opposed to the 100% equity fund? Is that reason still valid ?

In fact the link you sent shows that over two years it is not in the red, and not in the black either, just back where it started. Over the last two years bonds, which make up approx 40% of the fund have had a torrid time, so a 100% equity fund has outperformed a multi asset fund. However 'past performance is no guide to the future'. If equities go through a rough patch the HSBC fund should hold up better than the VLS100.

solidpro

I know nothing except what I learn as I go. I don't have the time or inclination to do more homework than I can get away with. Back at the time I was juggling a SIPP some people said VS100, others HSBCGSBP. I'm young, dumb and full of SIPP, so I thought I'd see how equal investment went after a few years then juggle again.

It's always been down, and I was kinda hoping when it broke even, I'd switch it. It feels like it never will. But that's the mistaka of a 'saver' not an 'investor', right?

Linton

solidpro said:

I know nothing except what I learn as I go. I don't have the time or inclination to do more homework than I can get away with. Back at the time I was juggling a SIPP some people said VS100, others HSBCGSBP. I'm young, dumb and full of SIPP, so I thought I'd see how equal investment went after a few years then juggle again.

Juggling every few years is a good way to lose money if you sell the funds that you believe have done badly for a low price and buy the ones that have done well for a high price.

Best to choose the fund(s) that are right for you and keep to them unless you or your circumstances change.

So what is right for you?  We dont know because we dont know your circumstances and attitude to risk. VLS100 is 100% shares and so can be expected to crash 40-50% perhaps every decade.  But if you keep it for a long time it should perform well as the underlying growth exceeds the shorter term fluctuations.  If such fluctuations will cause you to panic or you dont expect to sray invested for say 15 years then perhaps you would want something less exciting. 

HSBC Global Strategy Balanced is such a fund.  At 60% shares when VLS100 crashes 50% the HSBC will crash about 30%.  Arguably this will make it more appropriate if your timescales are shorter, hiowever in the very long term you would expect VLS100, or the HSBC equivalent,  to perform significantly better.

Another factor is whether you are just investing a lump sum or will continue to regularly buy more of your fund(s).  In the latter case when the fund crashes your contributions will buy you more fund units so you can look on crashes as an opportunity to buy cheaply.

dunstonh

I've got some money in this for 2 years. It's the only fund I've got money in that has alway been in the red. 

It shouldnt be always in the red over two years.  Upto around Nov 2021, it should have shown growth.  However, post 2021 it should have zig-zagged downwards bottoming out around October 2022 and risen a bit since then and should be in the ballpark of what you invested (based on 2 years)

On one hand, thinking I should stay in it for 10 years and hope for the best. 

An economic cycle is around 15 years. So, that is the ideal minimum.

On the other hand I should just stick it in VS100 like all the other money in this account.

VLS100 is the weak fund in the VLS range.   A global tracker would usually be better.  Or, you want more management decisions, like you get with VLS100, you could use the HSBC adventurous.

However, if you have the risk acceptance of 100% equities and can afford to take that level of risk and have sufficient time, why would you use a  circa 60% equity fund to begin with?  i.e. what has changed since early 2021.

 Back at the time I was juggling a SIPP some people said VS100, others HSBCGSBP. 

The risk of following internet suggestions is you get people that dont know what they are talking about mixed in with those that do.   And maybe text on discussion boards is not always easy to follow or could be misinterpreted.  Or they project their risk profile onto you.

For example, VLS100 aligns closer to HSBC GS Adventurous.   Whereas HSBC GS Balanced aligns closer to VLS60.
So,  if you were getting VLS100 and HSBC GS Bal mentioned in the same thread, then clearly, there is something not right.

 I'm young, dumb and full of SIPP, so I thought I'd see how equal investment went after a few years then juggle again.

There will be points that VLS100 would be lower than HSBC GS Bal.   two years is insufficient.  Even 10 years is insufficient.   The first decade of the millennium saw circa 60% equity funds beat 100% equity funds.   The second decade was the other way around.    

It's always been down, and I was kinda hoping when it broke even, I'd switch it. It feels like it never will. But that's the mistaka of a 'saver' not an 'investor', right?

Maybe it has only been down when you looked.


Blue is the unit price of the inc units (with income not reinvested). Red is the income reinvested to buy more units (and would equate to Acc).   You should be slightly up on two years and as mentioned early on, you can see that it did well over 2021.  2022 was, as is well discussed here, a very bad year for lower volatility risk investments.

JohnWinder

You sound like the sort of fellow (sorry, sexist language, but women aren’t usually the worse investors) who’d likely benefit from this award (albeit narrow category) book from two Englishmen no less. https://www.evidenceinvestor.com/have-you-read-our-award-winning-book/