FSM Hong Kong

Nicholas Kang — Mon, 06 May 2019 12:30:31 +0800

We already have an FSM thread for both Malaysia and Hong Kong.

I searched for Hong Kong mutual funds investments on this forum but can't find any discussion threads on that, so I started a new thread on this.

I am not sure if there are any investors who invest in HK mutual funds/ETFs/bonds.

I personally find the sales charge for FSM Hong Kong of 1.25% acceptable. The same sales charge apply to RSP programme. That said, although Fidelity HK (another mutual fund provider) has a higher sales charge for equity/mixed-asset/balanced fund (3%), it offers a lower sales charge (1%) for their monthly RSP programme.

So, my suggestion would be to look for RSP funds from Fidelity HK and purchase funds from FSM HK for irregular investments. Note that Fidelity HK has less choices for funds though.

Back to FSM HK, you can't choose funds automatically on the fund selector page by volatility and Sharpe Ratio (not sure if they purposely do so).

The 0.05% platform fee per quarter is pretty much similar to FSM MY and Singapore.

I would say that comparing FSM HK, Fidelity HK and Manulife Asset Management (HK) funds, the money market fund at FSM HK (JP Morgan MMMF) offers the best return due to its slight exposure to bonds. Moreover, all MMMFs across 3 fund houses are not subject to any sales charges/platform fees.

My current projected portfolio (for my proposed undergraduate study at HKUST this August 2019) would be:

Sign up for 1000 HKD Monthly RSP for Janus Henderson Balanced Fund HKD Acc on Fidelity HK (1% sales charge), invest 20-30% in the BOCHK Hong Kong Dollar Income Fund (Not a very good Morningstar rating, but low volatility and low PTR is attractive for me). Another 40% or so would go to the JP Morgan MMMF. The rest would be in my Hang Seng bank saving account. Probably would go for term deposits if the remaining amount is large enough.

I would consider myself to be moderately risky investor and don't like too much exposure to currency risk especially for the short term. Janus Henderson Balanced fund has a high annual expense ratio, but due to its very low exposure to ABS/MBS and high-yield securities, plus a decent 7-8% annualized rate of return over a 5-10 year horizon, I am willing to invest in that fund. Moreover, for me, a little exposure to developed nations is okay as my current portfolio is skewed towards the growing Asia-Pacific region.

What are your thoughts on FSM HK? Do you invest in FSM HK? Feel free to share your opinions/experience.

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FSM Hong Kong