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Adviser anger as HSBC pools smaller portfolios

An adviser has hit out at HSBC for automatically moving clients with smaller discretionary managed portfolios into a pooled manager of managers fund.

HSBC has transferred clients with portfolios of less than £250,000 into a managed portfolio fund rather than its discretionary managed service.

Worldwide Financial Planning adviser Nick McBreen claims the move means that clients are not getting the service they expect or pay for.

He says: “My interpretation is that HSBC is not interested in smaller clients. I do not think just trawling funds across into one HSBC holding is providing an ongoing managed discretionary service.

“This raises question marks over the value of discretionary management which is a service they are paying for.”

HSBC head of discretionary management Robert Candler says: “Whether a client invests £5m or £150,000, the portfolios are run in exactly the same way.

“It is more tax-efficient for those portfolios of £250,000 or less to be run under a manager of managers fund. The underlying asset allocation is the same as in the discretionary managed fund.”


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