HSBC Islamic Global Equity Index IC, BC, BD

[mfizz]

Salaam All,

I am trying to work out what the difference between the following are:

HSBC Islamic Global Equity Index IC GBP - FUND:BDCVVD1
HSBC Islamic Global Equity Index BD GBP - FUND:BJLVT96
HSBC Islamic Global Equity Index BC GBP - FUND:BJLVT85

I had a rather uneventful phone call with AJ Bell who told me to contact HSBC direct to find out the differences.

The things i could find were that IC has a minimum investment. I have seen some other information dotted around on this forum that has FX and minimum charges?

Can some one please confirm

[Wasim1]

Please see this post.

Selecting an ETF

Assalam o alikum, every fund issues different share class from time to time which could be different from the perspective of the fund charges (directed towards different types of investors) or they may be accumulating or dividend paying. For HSBC fund, IC = Accumulating share class denominated in USD BD = Dividend paying/distribution shares class denominated in GBP. Jazakallah Zeeshan

[Wasim1]

Further to add the reference currency of IC GBP (accumulative class, dividend re-invested) share class is USD(check the key investor information doucment), which means FX charge will apply at buy and sell.

Whereas, the reference currency of BD GBP (Distributive class, dividend distributed) and BC GBP (accumulative class, dividend auto re-invested) shares class is GBP hence there will be no FX charge on buy and sell of these.

You may see entry charge of 5.54% shown on cost calculator when buying the units of these fund but this does not apply to individual investors hence you can ignore that.

Hope this helps.

Regards,
Wasim

[mfizz]

Jzk for your information

@Wasim1

You may see entry charge of 5.54% shown on cost calculator when buying the units of these fund but this does not apply to individual investors hence you can ignore that.

Where did you get that from. The person on the phone said that it will be chargeable…

Jzk

[Wasim1]

The person you spoke on phone doesn’t have knowledge of it. I have spoken to AJ bell last year and they confirmed that this entry charge is not applied to individual investors. And sure enough I have been buying units since then without entry charge being applied. For your peace of mind you can make a small purchase and see for yourself. AJ bell should fix there calculator to avoid this confusion and ambiguity related to entry charge

[mfizz]

Jzk out of curiosity which one did you go for. I am thinking of BC in an ISA

[Zeeshan]

Unless you need dividend income to utilise, BC should work best.

[uddin]

Salaams,

I’m new to Shares/Funds and was planning on investing in the same HSBC Islamic Global Equity Index but not sure on which class to invest in and the stock brokers themselves haven’t really been helpful!

1 - CLASS AC - ACCUMULATION (USD)
2 - Class BC - Accumulation - GBP

With Hargreaves Lansdown I believe the only difference is
1 = Net ongoing charge is 0.94%
2 = Net ongoing charge is 0.62%

Which class should I be choosing and why?

I’m located and trading from the UK…

[uddin]

Salaams, can anyone advise please???

[Zeeshan]

Walikum as salam @uddin

sorry for late reply as just seeing your message. May be you would have found the right answer.

Considering your are UK resident, it best to invest in the BC class - Check AJ bell as the platform VS Hargreaves as their fees are low. The ongoing fund charges should be the same, from memorary, it should be 0.5% for the fund and 0.25% for the AJ bell platform fee.