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HSBC Flexinvest

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  1. #1

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    HSBC Flexinvest

    https://www.hsbc.com.hk/investments/...ds/flexinvest/

    Trying to get in on the cheap index fund boom. Still trying to figure out the full details but HSBC have created their own index funds (or just white labeled another provider). Can't seem to find the offering documents for the index funds. I also note that there are both "platform fees" as well as "management fees" although they haven't set out what the management fees will be.

    Just to add, I still think you are better off with ETFs, but at least there are now some more options rather than the mutual funds offered by the banks, although the HSBC Flexinvest fees (while lower than the mutual funds) to remain higher than via an ETF.

  2. #2

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    Having looked at their page quickly, Flexinvest looks straight out of the Private Bank playbook. It looks very similar to a mandate product. I guess pricing aside, if you have a sizable amount to invest, going with a PB would be better due to the preferred pricing you would be able to get.

    traineeinvestor likes this.

  3. #3

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    You can find more info about the funds here:

    https://www.assetmanagement.hsbc.com...r/fund-centre?

    Then click around and look for the factsheet. I could not find the one for the "Hang Seng Index Fund"... which I assume is 2800 + management fees + platform fees added.

    For example Global Aggregate fund.

    https://services.assetmanagement.hsb...lish/IGABH.pdf

    pin likes this.

  4. #4

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    Just looked at Global Equity Index Fund same as Shri's page, Notice Ongoing change figure (What a lousy name for management fee, expense ratio etc) is 0.40% but have a loot at point no.4 in small prints.. Looks like a total scam if platform fees added on top of all these..


  5. #5

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    And if you're into this sort of thing... historical performance of the funds:

    https://services.assetmanagement.hsb...en.pdf?noembed


  6. #6

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    Had a look, fees are MUCH better than the mutual funds that we presently have in the retail market but still much more expensive than ETFs. The global equity fund fees are 0.4% for example.

    Also another benefit is that there are no entry fees, which is common with most mutual funds in HK.

    I do need to do a bit of research but I think this is a great way for someone who is just starting out investing to get into the market, simply because of the ease of access and being able to invest in HKD without dealing with any currency fees.

    shri and kittykaitak like this.

  7. #7

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    Quote Originally Posted by pin
    Had a look, fees are MUCH better than the mutual funds that we presently have in the retail market but still much more expensive than ETFs. The global equity fund fees are 0.4% for example.

    Also another benefit is that there are no entry fees, which is common with most mutual funds in HK.

    I do need to do a bit of research but I think this is a great way for someone who is just starting out investing to get into the market, simply because of the ease of access and being able to invest in HKD without dealing with any currency fees.
    I agree with this. It's a better product than most of the traditional managed funds which are being peddled around town with their front end loads and active mis-management fees, but a lesser product than an ETF index fund. So okay for people who don't have the means to buy index funds directly but otherwise not good enough.

  8. #8

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    So to be clear, it is 0.28% management plus 0.4% platform plus transaction fees?


  9. #9

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    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.

    pin likes this.

  10. #10

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    Quote Originally Posted by GentleGeorge
    So to be clear, it is 0.28% management plus 0.4% platform plus transaction fees?
    Platform fee varies on how much you have invested.
    Under HKD10k - nothing
    HKD10k - 200k - HKD28 a month
    HKD200k+ - 0.8%

    Management fee various depending on fund. Global fund for example is 0.40%

    Seems to be no trading fees.

    They are offering free platform fees for the first 6 months.

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