HSBC Global Strategy Fee Increase?

dunstonh

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.

Corporate action notices on the charges change went out in either January or February.   As the platform is the holder (in the eyes of the fund house), they only have to notify the platform.   Platforms can then decide if they want to pass them on or not.   Not all platforms inform investors of corporate notices.

In the IFA world, some platforms will only notify the IFA.  Some will notify the end investor and the IFA.  Some do not pass them on at all.  So, seems similar to the DIY side based on what you are saying.

dealyboy

@dunstonh 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.

Corporate action notices on the charges change went out in either January or February.   As the platform is the holder (in the eyes of the fund house), they only have to notify the platform.   Platforms can then decide if they want to pass them on or not.   Not all platforms inform investors of corporate notices.

In the IFA world, some platforms will only notify the IFA.  Some will notify the end investor and the IFA.  Some do pass them on at all.  So, seems similar to the DIY side based on what you are saying.

Hi dunstonh ... thank you, understood. No Corporate Actions (or important notifications) for the time period for either platform.

In the real world an increase in AMC/OCF (if not excessive) is not a game changer if the fundamentals are good, but as a professional you will know that surprises do not endear themselves. A review of fund manager and fund (and type of fund) is not a bad thing with 5 years (out of 10) remaining.

dunstonh

In the real world an increase in AMC/OCF (if not excessive) is not a game changer if the fundamentals are good, but as a professional you will know that surprises do not endear themselves. A review of fund manager and fund (and type of fund) is not a bad thing with 5 years (out of 10) remaining.

In the OEIC universe, you would struggle to find better alternatives.  Review yes but outcome is unlikely to result in a change.

eskbanker

dealyboy said:
A review of fund manager and fund (and type of fund) is not a bad thing with 5 years (out of 10) remaining.

Yes, in that if your planning horizon is now five years instead of ten then, depending on how fixed that deadline is and how you're progressing against your objectives, it might be appropriate to start thinking about derisking....

dealyboy

@eskbanker said:

dealyboy said:
A review of fund manager and fund (and type of fund) is not a bad thing with 5 years (out of 10) remaining.

Yes, in that if your planning horizon is now five years instead of ten then, depending on how fixed that deadline is and how you're progressing against your objectives, it might be appropriate to start thinking about derisking....

Thanks again eskbanker. I consolidated pensions and savings about 5 years ago into the HSBC GS funds in a SIPP (AJB) and S&S ISA (iWeb), since then I've made small additions to them and built a substantial emergency cash buffer. The original outlook was 5-7 years and is now 10, when I will be 75, the purpose being for old age care.

I was planning to lower my risk at that point, but it may change. I hope that if and when I anticipate needing care that I will have sufficient notice of what that may involve and what the outlook might be, so at that point I will look to de-risk.

In my review of investments I will not limit myself to OEICs and perhaps I will look at ETFs, but I will resist the temptation to build a portfolio and become 'active', but I may become more interventionist, diversification is key. I am very sensitive to cost by nature (as may be typical of an MSE'er) and kind of resent already what I am paying for my SIPP, money for nothing, so HSBC needs to justify their charges. If I can find alternatives at lower cost at the same performance and risk, then I may well move. This arbitrary increase in charges by HSBC Asset Management, together with my experiences of HSBC personal banking, gives them two black marks going forwards, however my opinion of the personal finance industry as a whole is not great so I might just end up sticking.

Of course as @dunstonh is my hero, I take comments by them as always intended to be in the best interest of the 'patient'.