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HSBC Flexinvest

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  1. #11

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    Quote Originally Posted by greenmark
    Platform fees are a straight HK$28 per month. Or HK$336 per year. Or 0.8% if the balance is more than 200k.

    With those platform fees and each fund management fee at about 0.3%, then total fees are about:

    - If you have $1000 invested = 0.3%
    - If you have $10,000 invested = 3.7% (!)
    - If you have $100,000 invested = 0.67%
    - If you have $195,000 invested = 0.47%
    - If you have $200,000 invested = 1.1% (!)

    And the platform fees seem to apply to your average monthly holdings. But I can't find if this is the the average total holdings for each fund invested, or average for all your investments in Flexinvest or even the average for all your holdings with HSBC. In any case God forbid the investments make any money and push you over that 10k threshold.

    Positives are low minimum purchases (only HK$100), zero transaction fees and the funds are domiciled in Ireland.

    TBH this seems to be geared to those people who would like to day trade mutual funds (those people exist).

    It also seems to be a way for HSBC to say "look, we offer index funds" so as to get the HKMA off their backs for their high mutual fund fees.
    Thanks for that. So the sweet spot is to have HKD195k (USD25k) invested.

    I still feel this is SO MUCH better than any other mutual fund product out there in HK and is MUCH MUCH easier than setting up a brokerage account to trade UK listed ETFs, even with the fees which are MUCH MUCH lower than any other mutual fund out in the market in HK along with the fact there are no loading fees at all.

    Also remember, a lot of people feel much more comfortable trading through a bank rather than a brokerage.

    Hopefully this forces other banks to bring out similar products.
    nivantj likes this.

  2. #12

    Join Date
    Jul 2004
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    @pin How much is the cost difference if say someone directly buying LSE based Global ETF from iShares/Vanguard through HSBC vs HSBC's own global index fund? I suppose at HKD 195k, the former would be cheaper due to low expense ratio!!!

    IIRC there is some promotion going on for no trading fee for six months on US based stocks/ETFs through HSBC!!


  3. #13

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    Quote Originally Posted by nivantj
    @pin How much is the cost difference if say someone directly buying LSE based Global ETF from iShares/Vanguard through HSBC vs HSBC's own global index fund? I suppose at HKD 195k, the former would be cheaper due to low expense ratio!!!
    Via HSBC expat its something like a flat fee of GBP15 (or USD equivalent) and the TER is obviously going to be much cheaper (TER for IWDA which I think tracks the same index as the HSBC global equity fund is 0.2%).

    BUT you have to remember with HSBC Expat:
    - Need minimum balance (got to be Premier elsewhere)
    - Have to convert HKD to GBP/USD, etc

    With Flexinvest:
    - No trading fees
    - Low barrier of entry
    - Don't need to be Premier customer
    - Can trade in HKD
    - As fund is domiciled in Ireland, still benefit from the Irish - US tax treaty for 15% dividend witholding
    nivantj, traineeinvestor and shri like this.

  4. #14

    Join Date
    May 2009
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    677

    I wonder 2 things.
    Why would they charge more platform fees if you have more than 200k? Shouldn’t it be cheaper instead of more expensive? Doesn’t make sense!

    Will they ever include these funds in their MPF choices?

    Paxbritannia likes this.

  5. #15

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    Any expert opinion on tracking difference of the funds, looks very high (in negative terms) compared to established ETFs in US/LSE which could be huge drag on performance and/or indirectly add to cost!!!

    https://www.assetmanagement.hsbc.com...2B4ACDD15D9395


  6. #16

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    So.. First question. Are they actually tracking a published / licensed index on the fact sheet?


  7. #17

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    @nivantj is this the one you were comparibg?


    https://services.assetmanagement.hsb...H&locale=en_HK..


  8. #18

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    Yes the link in my post seem to refer to same series of funds or at least tracking differences are similar, it also points to which index it follows..


  9. #19

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    Will look at it in a bit. They do say they have a tracking error of 0.75%- and am also not familiar with the index they track, seems different from iwda and VT indexes.


  10. #20

    Join Date
    Dec 2009
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    130
    Quote Originally Posted by greenmark
    Positives are low minimum purchases (only HK$100), zero transaction fees and the funds are domiciled in Ireland.
    Slightly off topic, but does anyone know if HSBC MPF funds for US/Global equities are also Irish domiciled? Like "HSBC ValueChoice US Equity Fund". I see their funds factsheet here, but no such info (and a call to their MPF dept only resulted in a long convo explaining the meaning of "domicile" ..and how to spell it)

    I'm guessing I should just be assuming it's HK, but thought I'd ask

    https://www.hsbc.com.hk/content/dam/...mpf/4q2019.pdf
    Last edited by foxwendal; 04-03-2020 at 03:40 PM.

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