HSBC Global Strategy Fee Increase?

Mothman

Not sure if this has already been mentioned, but someone on another forum posted that the fees for the HSBC Global Strategy range of funds were to increase from 28th March. The below linked pdf document from January would seem to confirms this, though they would also seem to be implementing a discount structure based on fund size.

https://www.google.co.uk/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.assetmanagement.hsbc.co.uk/api/v1/download/document/gb00b84dv184/gb/en/administrator%2520service%2520fees%2520and%2520amc%2520investor%2520notice&ved=2ahUKEwj00evloJmFAxWnUkEAHXPtAvIQFnoECBUQAQ&usg=AOvVaw0pGiqb4XfGyqTstslH3F8e

Apologies if this has already been discussed.

dunstonh

Not sure if this has already been mentioned,

Not had its own thread but it has been mentioned in unrelated threads (where HSBC pops up in the general conversation).

They are aligning the charges of the OEIC version with the MPS version.  I don't know if its related but a discussion with my HSBC representative about the MPS version was along the lines of why should I use the MPS version when I can use the OEIC version which is cheaper and she said that they were are aware and its a common pushback from IFAs.     This removes that blocker.   Although I was hoping they may have aligned the MPS with the OEIC rather than the other way around!

Whilst DIY investors don't have access to the MPS version, the volume of money that goes in from the advised market will influence commercial decisions.  Low cost MPS is a big growth area in the advised world (mainly on the back of the FCA consumer duty).    The HSBC MPS version has slightly outperformed the OEIC version even with the charge difference (probably due to a different rebalancing process; the MPS is allowed to drift more before bringing back in line. The OEIC version doesn't allow the same drift).  So, now IFAs will be looking at a situation where the OEIC and MPS are the same charge and the MPS has the better performance. 

JohnWinder

Do you have a Vanguard representative?

Aminatidi

Interesting as I have a chunk in HSBC Global Strategy Balanced and the trend on fees does seem to be downwards so increasing them seems a bit brave.

Not something I'd change over but still a little bit disappointing.

dunstonh

JohnWinder said:

Do you have a Vanguard representative?

Yes.  Indeed, I spoke with him a few weeks ago.  Most of the fund houses have reps.  

Interesting as I have a chunk in HSBC Global Strategy Balanced and the trend on fees does seem to be downwards so increasing them seems a bit brave.

The HSBC GS funds had drifted down in cost over the last few years without any fanfare or announcement.   They are still undercutting Vanguard (both the VLS OEIC and both versions of the VLS MPS).

dealyboy

Thanks OP ... I had no idea; my investments are wholly in HSBC Global Strategy Dynamic Acc C and Balanced Acc C, 50:50, using platforms AJ Bell and iWeb. Very disappointing that I received no communication and gives me a reason to move.

eskbanker

dealyboy said:

Thanks OP ... I had no idea; my investments are wholly in HSBC Global Strategy Dynamic Acc C and Balanced Acc C, 50:50, using platforms AJ Bell and iWeb. Very disappointing that I received no communication and gives me a reason to move.

Not sure that OCF increases of 0.02% and 0.03% are really significant enough to warrant express notification from platform to investor, but then again I wouldn't see them as reason to move either - did you mean that you're moving platforms because of lack of communication or moving funds because of a small OCF increase (or both)?

Sea_Shell

dealyboy said:

Thanks OP ... I had no idea; my investments are wholly in HSBC Global Strategy Dynamic Acc C and Balanced Acc C, 50:50, using platforms AJ Bell and iWeb. Very disappointing that I received no communication and gives me a reason to move.

Do they have to tell you, if the fees (as part of the fund price) changes?

Is this the AMC? 

dealyboy

@eskbanker said:

dealyboy said:

Thanks OP ... I had no idea; my investments are wholly in HSBC Global Strategy Dynamic Acc C and Balanced Acc C, 50:50, using platforms AJ Bell and iWeb. Very disappointing that I received no communication and gives me a reason to move.

Not sure that OCF increases of 0.02% and 0.03% are really significant enough to warrant express notification from platform to investor, but then again I wouldn't see them as reason to move either - did you mean that you're moving platforms because of lack of communication or moving funds because of a small OCF increase (or both)?

Thanks esk ... fair question ... just gives me a reason. I think an increase of 12% and 17% on the charge without being informed leads me to question my previous 'buy and forget' choices, I will now look at alternatives.

Sea_Shell

eskbanker said:

dealyboy said:

Thanks OP ... I had no idea; my investments are wholly in HSBC Global Strategy Dynamic Acc C and Balanced Acc C, 50:50, using platforms AJ Bell and iWeb. Very disappointing that I received no communication and gives me a reason to move.

Not sure that OCF increases of 0.02% and 0.03% are really significant enough to warrant express notification from platform to investor, but then again I wouldn't see them as reason to move either - did you mean that you're moving platforms because of lack of communication or moving funds because of a small OCF increase (or both)?

Thanks, crossed posts 😉

Not worth worrying about, in the grand scheme of things.

GeoffTF

HSBC has form for this. They increased the fees on two of their UK trackers IIRC. You would not have known unless you were monitoring updates of the KIID. AFAIK, none of the popular platforms inform existing investors about changes to fund charges.

Vanguard's charges have gone steadily down, but they have not been reduced for some time (2019 appears to have been the last batch of reductions).