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Normally Mark and I are pretty much on the same wavelength. Here we diverge a little.
PDSE targets on the res - no question.
HFSs I allocate on an SMS pool - too many problems in the past with VSAM on the res, so I started with HFS on SMS, and left it there. Getting too damn big nowadays anyway.

Each to their own.

Shane ...
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I am inclined to agree with Shane and put HFS files in SMS-managed storage. I even went so far as to define a separate SMS pool just for HFS datasets, with a max of 10 volumes of a unique serial number set. (HFS001-HFS010) I can clip and add or remove volumes as needed, up to the max of 10. Since my DASD farm is much larger than my needs, I've got volumes to burn.

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