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Unit Trusts
FundMax
- The investment decision is yours, but you should not invest in the product unless the intermediary who sells it to you has explained to you that the products is suitable for you having regard to your financial situation, investment experience and investment objectives.
- Unit Trusts are investment products and some may involve derivatives. Unit Trusts are not equivalent to time deposits.
- In the worst case scenario, the value of the unit trusts may be worth substantially less than the original amount you have invested (and in an extreme case could be worth nothing)
- Investors should not base on this material alone to make investment decision. Please refer to the relevant offering documents for the product details, including the risk factors involved.
Additional risks are disclosed in the section of "Risk disclosure" below. Please refer to it for details.
A unique fund investment solution to help grow your wealth wisely
Timely rebalancing of your portfolio is critical in optimising your potential returns. Yet, the fee involved in the process can be a deterrent. We have now made the rebalancing of your portfolio much easier with a low single account fee^ for unlimited transactions and access to a full suite of wealth management services and tools.
With FundMax, you can:- grow and accumulate your wealth more effectively
- place funds in the right asset types at the right time
- conduct multiple transactions at one cost when investing in Unit Trusts
FundMax is a breakthrough in unit trust pricing models providing a total fund investment solution designed for smart investors.
- All-in-one monthly fee, as low as 1%p.a.
One account fee based on the monthly average market value of the fund holdings^ in your FundMax account, without having you to pay any upfront subscription fees or switching charges.
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| FundMax Account average holding balance | Account fee rate (p.a.)^ | |
| HSBC Premier | HSBC Advance | |
| Below HK$500,000 | 1.5% | 1.75% |
| HK$500,000 to less than HK$1,000,000 | 1.25% | 1.5% |
| HK$1,000,000 or above | 1% | 1.25% |
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^ The account fee is calculated based on the average holding balance of open-end funds (excluding the No Subscription Fee Series and CapitALL funds), and is subject to a minimum charging balance. The minimum charging balance is HKD200,000 for FundMax Account held under HSBC Premier and HKD50,000 for FundMax Account held under HSBC Advance. Terms and conditions apply, please refer to the Terms and Conditions section for more details. All other fees applicable to the relevant fund subscription will still apply.
How is the FundMax account fee calculated?
Details of the account fee collected will be provided in the monthly account statement.
Example
Mr. Chan, an HSBC Premier customer, maintains a FundMax account with open-end fund holdings during April 2011. The monthly account fee for April 2011 is calculated as follows:
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| Charging period: | 1-30 April 2011 (30 days; 365 days in the full year) |
| Average holding balance of open-end funds for April 2011: | HK$600,000 |
| Account fee for April 2011 = HK$600,000 x 1.25% x 30/365 = HK$616.44 | |
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The account fee will be collected from the designated cash account on the last business days of the month.
Get access to a full suite of comprehensive wealth management services and tools to help you shape your portfolio, including:
- Portfolio rebalancing with ease
You can focus on picking the right funds at the right time to rebalance your portfolio to optimise your portfolio return potential, without having to consider any upfront transaction costs. - Round-the-clock performance tracking
Make use of our gain/loss tracking service via HSBC Internet Banking to monitor your fund performance anytime. To facilitate your monitoring, we will alert you with SMS+ when your pre-set level of gain / loss is hit. - Wide range of investment funds
You can achieve the degree of diversification you desire while consolidating your fund holdings into one account. - Full suite of comprehensive investment tools
Market research
Backed by our global expertise and capability, our market research enables you to keep abreast of the latest market trends and discover investment opportunities.Best-of-breed fund choices and fund analysis tools
Built on robust methodology, Funds of the Quarter highlights a list of funds that have performed consistently well in various asset classes and markets to facilitate your fund selection process. You can also compare funds in detail with just a few clicks using our Fund Express tool.Goal planning service
Whether you already have a financial goal in mind or are looking to set up a new goal, our Express Goals service will help you better understand your financial needs and achieve your goals.Portfolio building service
Our portfolio building service can help you create an investment portfolio based on your investment profile for you to invest in a structured and disciplined way to grow your wealth.+Gain / loss tracking SMS alerts are applicable to individual holdings with a market value reaching HK$250,000 and for HSBC Premier customers only.
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| Administration fee at account closure | • Any accrued monthly account fee that has not yet been paid, and • If the period between the date of completion of the last subscription or switching and the date of account closure is less than one year, an account fee based on the minimum charging balance will be charged for the remaining period up to the first anniversary of the transaction |
| Transfer fee | 1% of the prevailing market value of the units being transferred out |
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Note: FundMax account is designed for customers who plan to periodically review and rebalance their portfolios in order to benefit from the features of the account. It may not be suitable for investors who plan to hold the same funds for a long time without any rebalancing.
FundMax Account Terms and Conditions
General- FundMax Account is an Investment Services Account governed by Integrated Accounts Terms and Conditions which must be read in conjunction with the following terms and conditions for FundMax Account.
- Customer must hold an HSBC Premier or HSBC Advance account in order to open a FundMax Account.
- Trading in stocks, warrants, equity-linked notes/ investments and Stocks/Unit Trust Monthly Investment Plan are not applicable in FundMax Account.
- Please note that frequent trading and market timing activities are strictly prohibited by fund managers in the interest of the funds. The Bank reserves the right to terminate any FundMax Accounts found engaging in such activities.
- Initial charge and switching fee are waived for subscription or switching using the FundMax Account. Customers are still subject to other charges including but not limited to annual management fee, redemption charge, and performance fee as prescribed in respective fund offering documents.
- Monthly account fee will start to accrue from the date when unit trust holdings (excluding funds in the 'No Subscription Fee Series', CapitALL funds and guaranteed funds) ('Relevant Funds') are first recorded in the FundMax Account.
- Monthly account fee is calculated based on the average holding balance of Relevant Funds during the charging period and the rate corresponding to that balance. For funds denominated in foreign currencies, the holding balance in Hong Kong dollar equivalent will be used based on the prevailing exchange rate as of the date when the holding balance is calculated. The monthly account fee is calculated in Hong Kong dollar and charged in the denomination currency of your designated cash account at the prevailing exchange rate as of the date when the fee is collected if the cash account is denominated in currency other than Hong Kong dollars,
- The monthly account fee is collected on the last business day of each calendar month and on a full-month basis. If the date from when unit trust balance is first recorded does not cover a full month, the monthly account fee for that month will be charged in the following month. Details of the monthly account fee can be found in the monthly composite statement for your FundMax Account.
- The monthly account fee is debited from the designated cash account as specified at the opening of the FundMax Account. If you wish to change the designated cash account, the instruction must be received by the Bank 3 business days before the last business day of the month for the monthly account fee to be charged against the new cash account from that month.
- If the average holding balance of Relevant Funds during the charging period is below the minimum charging balance specific to the type of Integrated Account under which the FundMax Account is held, the monthly account fee will be calculated based on the minimum charging balance. The minimum charging balance is HKD200,000 for FundMax Account held under HSBC Premier and HKD50,000 for FundMax Account held under HSBC Advance.
- If the debit for monthly account fee has been unsuccessful for 3 consecutive months, the FundMax account will be suspended.
- Upon closure of FundMax Account, any accrued monthly account fee not yet charged will be collected from the designated cash account when all investment holdings have been redeemed or transferred out and the account is successfully closed.
- If the period between the date of completion of the last subscription or switching of any Relevant Funds using the FundMax Account and the date of account closure is less than 1 year, an administration fee based on the relevant minimum charging balance and the corresponding rate will be collected from your designated cash account for the period from the date following the account closure to the date of anniversary of that transaction.
- For transfer-out of holdings in Relevant Funds from FundMax Account to other accounts, a transfer fee of 1% of prevailing market value of units being transferred will apply. The transfer fee will be charged against the designated cash account upon receipt of such instruction at the denomination currency of that cash account. If the fund denomination currency is not of the same currency as that of your designated cash account, the transfer fee will be converted to the denomination currency of your cash account at the prevailing exchange rate as of the date of collection. The transfer fee is not refundable irrespective of whether the transfer-out instruction is successfully executed or not.
- Portfolio building service is provided as an optional service under FundMax Account. Please contact any HSBC branch in Hong Kong for further information and assistance if you wish to sign up for the service.
- These Terms and Conditions can be amended by the Bank from time to time on giving prior notice to the Customer by way of display in the Banks premises or by such other method as the Bank thinks fit. If the Customer does not close the FundMax Account prior to the expiry of the notice period, the Customer shall be deemed to have agreed to such amendment.
- The English version of these Terms and Conditions shall prevail if there is any inconsistency between the English version and the Chinese version.
The information is not and should not be construed as an offer to buy or sell any financial products, and should not be considered as investment advice. You should carefully consider whether any investment products are appropriate in view of your investment experience, objectives, financial resources and relevant circumstances. Investment involves risks and past performance is not indicative of future performance.
Disclosure relating to portfolio building service:
Investments based on the Reference Portfolios, like all investments, involve risk and the value of your investment may move up or down, and become valueless. Historical performance figures are not indicative of future performance. In addition, the performance of your investments will depend on the performance of the underlying assets chosen by you for your portfolio(s) and may not match the performance of the relevant Reference Portfolio(s).
This document has not been reviewed by the Securities and Futures Commission of Hong Kong or any regulatory authority in Hong Kong.
Issued by the Hongkong and Shanghai Banking Corporation Limited
