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What it means to be wise
Specialist, Focused, Committed
Using experience and expertise to invest for your future
Discretionary Wealth Management
Contents
1 The practical importance of wisdom
2 Introduction to Discretionary Wealth Management
3 The client process
4 Why choose us?
5 Service overview
6 HSBC Wealth Strategic Solutions Service
7 HSBC Wealth Opportunities Service
8 HSBC Focus Service
9 HSBC Wealth Specialist Service
10 What you can expect from us
11 The security of being part of a global leader
12 Contact us
What does itmean to be wise?
Wisdom is at the core of who we are and how we work for
our clients. Wisdom underpins every decision we make and
action we take. We use our global network to research and
amass information about economic activity in every part of the
world. Our expert teams then use their experience to evaluate
this data on an ongoing basis, identifying key events and
opportunities. This, allied to our determination to take
the longer view, enables us to remain well-placed to look
to the future on behalf of our clients, whatever the current
economic conditions.
But we’re not resting on our laurels. We regularly discuss
with our clients what services they need from us, and in what
form. Which is why we developed our Discretionary Wealth
Management service. We’re determined to maintain and
improve the high performance and service levels you demand
and appreciate.
The practical importance of wisdom
Wisdom is a complex concept; intelligence is only the starting point. There must also be relevant, specialist experience – experience we have to learn from. But to learn useful lessons we must be discriminating – analysing and evaluating, in order to improve our expertise and strategic armoury. Only then can we anticipate; visualising the future with care, but with confidence – and only then can we begin to call ourselves wise. Yet wisdom is nothing unless we can use it to give sound advice...
Discretionary Wealth Management 1
Introduction to Discretionary Wealth Management
Dealing with experts focused on every aspect of Discretionary Wealth Management
Our experience shows that whatever your circumstances,
most people with significant wealth want the same thing.
A specialist they can trust, who gets to know them well, who
really understands their detailed financial position – and who
can always be relied upon to listen, and then give clear advice.
Because that gives you real peace of mind.
And that, in essence, is what we give you with your
own personal Discretionary Wealth Manager.
Why it makes sense to choose Discretionary Wealth
Management from HSBC Global Asset Management
(International)
Specialists with commitment. We are leading specialists in
Discretionary Wealth Management, aiming to give you the
financial future you want.
Our clients come first. We start with an in-depth analysis of
your needs, expectations and risk tolerance, so we can work
together to optimise your portfolio.
A personal relationship. Your own dedicated, specialist
Discretionary Wealth Manager works with you over time,
and is always available to discuss your portfolio.
A team of experts. Your Discretionary Wealth Manager
works closely on your behalf with our team of specialist
Fund Managers, headed up by the Chief Investment Officer
(CIO) who monitors all activity on a daily basis.
Focused on the unique needs of affluent clients.
Through our CIO team, we offer you active portfolio
management and multiple solutions, supported by the
resources of the wider HSBC team with expertise in the
multi-faceted financial world.
Trusted worldwide for investments. HSBC Global Asset
Management has $400 billion funds under management
worldwide. *
Part of the HSBC Group. Discretionary Wealth Management
is provided by HSBC Global Asset Management
(International), based in Jersey, part of one of the largest
and most well-respected financial services organisations in
the world.
2 Discretionary Wealth Management
What it means to be wise
*Source: HSBC Global Asset Management. Data as at 31/12/2011.
The client process
Speaking to the same specialists, who know what they’re talking about
1 Understand your needs
Through discussion, gain a clear understanding of your
circumstances and plans, supported by a specialist
questionnaire to establish your risk appetite.
2 Agree clear objectives
Agree your long-term objectives, liquidity needs and
time horizon with you.
3 Sound planning
Work with you to reach your goals in the appropriate
time frame.
4 Set investment strategy
Create an investment portfolio that is suited to
your needs.
5 Monitor and review
Monitor and review your portfolio on an ongoing basis;
with the ability to adapt as your needs change.
A simple, individual and collaborative process
We run through a straightforward, five-stage process, centred
on optimising your portfolio to fit your individual requirements
and objectives.
Discretionary Wealth Management 3
Why choose us?
*Source: HSBC Global Asset Management (UK and Jersey). Data as at 31/12/11.
Individual, long-term attention
Firstly, we review your assets, property, pension
arrangements, liabilities and other obligations. This gives us
a detailed picture of your overall financial position, which
enables us to construct an investment solution for you.
It’s a process we’ve been successfully managing now
over many years in the Discretionary Wealth Management
business.
Our specialists put you first
Discretionary Wealth Management is part of HSBC Global
Asset Management, the specialist offshore investment
business of the HSBC Group. We offer a personalised
portfolio management service to clients with US$1,000,000,
£500,000 or €833,000 or more to invest.
We have a team of professionally qualified Discretionary
Wealth Managers, based in Jersey, dedicated to servicing our
clients.
£5.3bn of funds under management through the
Chief Investment Officer’s team*
Headquartered in Jersey
Global research capability
Global experience and expertise
We aim to provide unique insights, investment opportunities
and access to service excellence worldwide.
Specialist expertise and personal focus
4 Discretionary Wealth Management
What it means to be wise
Service overview
Discretionary Wealth Management 5
Choose the investment strategy that’s best for you
Your Discretionary Wealth Manager will discuss your financial
circumstances and objectives with you, establish your attitude
to risk, and then help you decide which investment strategy
you feel most comfortable with.
Key benefits
All our Discretionary Wealth Services share fundamental
properties. They:
Involve regular, direct contact with your personal
Discretionary Wealth Manager
Are driven by a defined investment process
Have a highly competitive fee structure
Have secure internet access to portfolio values and activity
Provide ease of administration, incorporating custody
and nominee facilities and tax reporting where appropriate
HSBC Wealth Strategic Solutions Service
Our multi-asset portfolio service has been designed around
a sophisticated investment process. For any given level of
risk tolerance there is an optimum mix of assets that aims to
maximise investment returns. The portfolio is then actively
managed around this specific risk profile.
HSBC Wealth Opportunities Service
Aims to deliver lower portfolio volatility where investors
require an element of capital preservation. Importantly the
strategy is not governed by any benchmark. It seeks to
provide returns in excess of cash in a way that lets you
see how well your investment is doing in absolute terms.
HSBC Focus Service
This gives you direct access to one of our specialist, single
asset class portfolios. For example, we can offer UK, Global,
European and Emerging Market equities, as well as a variety
of Fixed Income portfolios.
HSBC Wealth Specialist Service
We can also, in certain circumstances, tailor investment
solutions to meet your objectives. We offer a range of
specialist services, such as the Satellite Benchmark Service.
Access to Personal Discretionary Wealth Manager
What it means to be wise
This service provides a multi-asset portfolio, carefully
designed to correspond to your specific risk requirements.
It has a combination of both conventional and alternative
asset classes and is actively managed.
Key benefits
Sophisticated portfolio construction and investment
selection seeks to deliver optimum returns for a given
level of risk
Access to asset classes which are historically not
easily accessed by private investors, e.g. Private Equity,
Hedge Funds, etc.
Harnesses the expertise and global reach of HSBC
Global Asset Management and the HSBC Group
Available in US Dollar, Euro and Sterling
How it works
All investment assets have different characteristics and it
is how assets are combined that can make the difference.
The HSBC Wealth Strategic Solutions Service has been
designed around a sophisticated process developed by HSBC
Global Asset Management. The risk and return behaviours of
different asset classes, and their correlation with each other,
are analysed thoroughly so that an optimal mix can be
designed to suit your risk profile.
You meet and discuss your objectives with your Discretionary
Wealth Manager, and complete a ‘Risk Tolerance
Questionnaire’. For any given level of risk there is an optimum
mix of assets.
We calculate an objective risk tolerance level for you from
your questionnaire. This enables us to create a portfolio
that is designed to maximise long-term investment returns,
within the identified risk parameters.
Who it would suit
People looking for a greater return over time, wanting
a sophisticated portfolio, and happy with a controlled
amount of risk, while being prepared to accept that their
capital is not guaranteed.
Risk considerations
The value of investments and any income from them
can go down as well as up
You may not get back the amount originally invested
Currency exchange movements may cause the value of
overseas investments to fluctuate
Investments in alternative markets may be less readily
realisable and more difficult to sell
Investments in Emerging Markets are potentially higher
risk and more volatile than those inherent in established
markets
HSBC Wealth Strategic Solutions Service
6 Discretionary Wealth Management
Portfolio aligned to your personal level of risk tolerance
What it means to be wise
How it works
The objective is to return in excess of 3 month rolling LIBOR
after fees over an investment cycle, which also allows you to
see how your investment is doing compared to cash, rather
than an index. To achieve our target we focus on three areas
of risk reduction – diversification, asset analysis and allocation,
and reducing the correlation with market cycles.
As the service is not constrained by a benchmark it has a
considerable degree of flexibility, enabling us to seek trading
opportunities across all the major asset classes.
In keeping with the opportunistic philosophy of the service,
the service has the ability to hold a high proportion of cash
and bonds to seek to preserve capital during market falls.
Who it would suit
People looking to beat cash, while focusing on preserving
capital, while being prepared to accept that their capital is
not guaranteed.
This offers a diversified and flexible way of investing;
providing opportunity for capital growth along with a greater
emphasis on capital preservation in falling markets. The aim
is to beat cash over a three to five year period, net of fees.
Importantly, it is not constrained by any benchmark.
Key benefits
The greatest strength is the flexibility to invest across all
asset classes, and this unconstrained approach is one of
the reasons for a record of positive returns since inception
with lower volatility
Focus on the preservation of capital, helped by
the central core of steady, low volatility assets (Cash,
Bonds, Hedge Funds)
There is a strong emphasis on thematic investment ideas,
and a low correlation with the major asset classes
Non-benchmarked, allowing active positions to
be taken in good and bad markets
Available in US Dollar, Euro and Sterling
Risk considerations
The value of investments and any income from them can
go down as well as up
You may not get back the amount originally invested
Currency exchange movements may cause the value of
overseas investments to fluctuate
Investments in alternative markets may be less readily
realisable and more difficult to sell
Investments in Emerging Markets are potentially higher risk
and more volatile than those inherent in established markets
Capital is not guaranteed
HSBC Wealth Opportunities Service
Discretionary Wealth Management 7
Emphasis on thematic investing
What it means to be wise
HSBC Focus Service
8 Discretionary Wealth Management
It may be that, following completion of your Risk Tolerance
Questionnaire and subsequent discussion, a fully diversified
multi-asset portfolio is not appropriate for your specific
circumstances. In this case we may be able to offer you
one of our specialist, single asset class portfolios that
support our core services.
For example, UK, Global and Emerging Market equities can
be offered as direct mandates managed by our specialist
CIO team, as can a variety of Bond/Fixed Income portfolios.
Key benefits
Enables us to concentrate our capital and our research
efforts on our best ideas
We follow our belief that higher conviction holdings are the
main drivers of performance, and conversely, that low
conviction small holdings can be a drag on performance
The advantages of a focused approach
This enables us to concentrate our research efforts on our
best ideas. For example, we can follow our firm policy of only
holding stocks where we see the potential for an absolute
return. We believe that higher conviction holdings are the
main drivers of performance.
As Warren Buffet said:
“Why not invest your assets in companies you really like?”
How it works
Whatever the exact portfolio we agree is best for you,
you can be assured that our specialist investment team is
working to maximise its efficiency. Throughout the world,
we’re looking at the bigger picture, but also at all the details.
There is always a stringent debate before the final decision
to invest is taken.
Who it would suit
Knowledgeable people with experience in investments who
are happy with a sophisticated portfolio, aiming for a high
level of return over time, and comfortable with an agreed
higher level of risk.
Risk considerations
The value of investments and any income from them
can go down as well as up
You may not get back the amount originally invested
Currency exchange movements may cause the value
of overseas investments to fluctuate
Investments in alternative markets may be less readily
realisable and more difficult to sell
Investments in Emerging Markets are potentially higher risk
and more volatile than those inherent in established markets
Concentrated portfolios do not have the diversity of pooled
funds and individual stocks may have a more significant
effect on performance
Where appropriate, we can also offer you specialist services
such as the Satellite Benchmark Service.
Key benefits
You receive a service that does a specific job within your
broader investment strategy
Regular portfolio reviews to adjust and adapt the portfolio
requirements to your needs
Complement your principal investment strategies or
reflect your own big picture financial perspective
HSBC Wealth Specialist Service
Discretionary Wealth Management 9
Who it would suit
Clients with highly specialised and often complex financial
needs, wanting a more individual solution, and with a
sophisticated understanding of the concept of risk. Satellite
benchmarks do not have exposure to Hedge Funds,
Commercial Property or Private Equity
Risk considerations
The value of investments and any income from them
can go down as well as up
You may not get back the amount originally invested
Currency exchange movements may cause the value
of overseas investments to fluctuate
Investments in alternative markets may be less readily
realisable and more difficult to sell
Investments in Emerging Markets are potentially
higher risk and more volatile than those inherent in
established markets
Hearing clear views from a specialist who knows your situation and aims
What it means to be wise
10 Discretionary Wealth Management
What you can expect from us
Excellent, individual client service
Our ability to tailor our service to meet the requirements of
each client is highly valued by them. We pride ourselves on
our client service – in particular, your Discretionary Wealth
Manager is responsible for:
Working closely with you to determine investment
guidelines and performance objectives, both initially
and on an ongoing basis
Ensuring fund management activity is consistent with
your investment guidelines and objectives
Providing regular reporting to you on portfolio activity
and performance
Comprehensive and flexible reporting
We believe it is important to keep clients abreast of all
material information or changes concerning their portfolio.
Our services include regular review meetings and ad-hoc
conversations as desired. Your Discretionary Wealth Manager
provides detailed investment and account holdings reports
on a semi-annual basis:
Portfolio valuation
Performance summary
Asset allocation summary
Capital and income statements
Securities transactions schedule
Market returns, economic and market overview
Tax packages (where relevant)
Secure internet access to portfolio valuations.
Secure online access to portfolio value and activity
What it means to be wise
Discretionary Wealth Management 11
The security of being part of a global leader
Benefit from a Discretionary Wealth Management specialist
Discretionary Wealth Management is provided by HSBC
Global Asset Management (International) and is part of the
HSBC Group, one of the largest and most well-respected
financial services organisations in the world.
HSBC has a unique international pedigree
The founding company from which HSBC took its name,
the Hong Kong and Shanghai Banking Corporation, was
founded in 1865 to finance trade between China and Europe.
Many of the principal companies opened for business over
100 years ago.
HSBC is the world’s local bank
HSBC’s international network has around 8,000 offices in
87 countries and territories across Europe, the Asia-Pacific
region, the Americas, the Middle East and Africa. HSBC
has around 100 million customers worldwide.
A wise move
As part of one of the world’s largest banking and financial
services organisations, Discretionary Wealth Management
from HSBC Global Asset Management (International) can give
you the security of financial strength, global knowledge and
specialist experience that’s been successful for generations.
Take advantage of our integrated approach and work with
a financial services partner you know you can trust.
What it means to be wise
*Lines are open Monday to Friday 9am to 5pm GMT (excluding public holidays). To help us continually improve our services and in the interest of security, we may monitor and/or record your communications with us.
12 Discretionary Wealth Management
If you feel it’s time for you to begin a partnership with a
dedicated Discretionary Wealth Manager, who is always
available to discuss your investments, then please contact
us today using the below details.
Tel: +44 (0) 1534 752 828*
Email: [email protected]
Web: www.assetmanagement.hsbc.com/international
Contact us
This document is distributed by HSBC Bank Middle East Limited, regulated by the Jersey Financial Services Commission. HSBC Bank Middle East Limited will only be introducing clients to HSBC Global Asset Management (International) Limited, Jersey for Discretionary Wealth Management Services. HSBC Bank Middle East Limited will not be liable for advice, processing, claims or otherwise.
Issued by HSBC Global Asset Management (International) Limited. HSBC Global Asset Management (International) Limited is registered in Jersey under registration number 29656 registered office HSBC House, Esplanade, St Helier, Jersey JE4 8WP. HSBC Global Asset Management (International) Limited is regulated by the Jersey Financial Services Commission for Investment and Fund Services Business and is licensed by the Guernsey Financial Services Commission for Collective Investments and Investment Business. HSBC Bank plc acts as settlement agent to HSBC Global Asset Management (International) Limited. Approved in the UK by HSBC Global Asset Management (UK) Limited authorised and regulated the Financial Services Authority. Copyright © HSBC Global Asset Management 2011. All Rights Reserved. 22377/ME/0512