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Discretionary portfolio management

Harness the power of a globally connected team with decades of experience and deep local insight to manage your investment portfolio. Experts in their field, our discretionary portfolio management team will ensure that your finances are directed towards sound investments designed to maximise potential returns.

Setting a new course with discretionary wealth management

When it comes to modern financial management and investing, creating diversified investment portfolios is key to getting more from your wealth in the long term. Of course, investments of this kind require sound knowledge and experience that can take a lifetime to acquire – which is why we offer a discretionary wealth management service tailored to our client’s needs.

What is discretionary investment management?

Discretionary investment management is a form of investment management for clients who want to establish their overall investment approach, define their financial ambitions, and determine the risk tolerance of their investments, before delegating the day-to-day investment decisions of these funds to a third party.

In essence, a discretionary wealth management service provides portfolio managers with the discretion needed to buy and sell on an investor's behalf with the intent of improving an investment’s growth and returns.

Why choose a discretionary investment management service?

Besides the clear advantage that comes with not having to directly handle your investments yourself, and thus operating within the clear financial risks associated with such actions, a discretionary has the power to harness opportunities everywhere, at a local or international level – without needing to seek permission to do so first.

As a result, a discretionary can diversify your portfolio into multiple markets and sectors, blending the strengths of different securities to accommodate for changing market conditions, and giving you confidence in the future of your finances knowing that your portfolio is being managed on a day-to-day basis by dedicated experts operating in line with your financial ambitions.

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Our discretionary wealth management solutions

Our discretionary wealth management services offer a range of solutions that are designed around your priorities and appetite for risk. With access to in-house institutional expertise through the HSBC Asset Management team, and access to third-party advisors, we seek global opportunities for your investments and focus on your future financial ambitions under the following criteria:

A global advantage

 

Being truly diversified means gaining access to different markets. Through a global lens, your investments can benefit from worldwide diverse expertise and local insight, providing opportunities wherever they arise across varying sectors and economic cycles.

And with 500+ HSBC investment professionals connected across 30+ countries, we can manage a diversified portfolio based on your needs and investment objectives.

Focused vision 

 

By clearly understanding your investment goals, your risk level, and the type of portfolio you want to build, our global team of experts can identify and harness opportunities that match your predefined requirements and objectives.

Through our discretionary investment management services, you have the knowledge that your investments are being managed by our team in line with your financial vision.

Dedicated to your future

 

By creating and managing diversified portfolios with a clear vision of their long-term potential, your investments are more likely to meet their objectives when compared to short-term approaches. Our investment philosophy takes a rigorous long-term approach whilst maintaining resilient controls.

And for those seeking investment portfolio management solutions that are cost-effective and cover either single or multi-asset classes, we offer solutions that can be fine-tuned for specific ambitions, management preferences, and risk appetites.

Alternatively, for those seeking a highly tailored approach and the ability to pinpoint exact risk exposures, we can create a customized service that includes equities and various fixed-income investment opportunities, including investment-grade bonds and emerging markets.

Managed in the right way, your wealth can be a tool that helps you achieve your goals. We’re here to help you do just that.

Investors should expect to be locked in for the full term of their investment, which may be subject to extensions.

  • It is important to note that the capital value of, and income from, any investment may go down as well as up and you may not get back the full amount invested
  • The investment is subject to normal market fluctuations and there can be no assurance that an investment will return its value or that appreciation will occur
  • Liquidity constraints where subscriptions and redemptions are not available daily, or where lockups apply, mean that investors are subject to market risk during interim pricing periods and may not be able to access funds on short notice
  • There is a greater risk associated with emerging markets. Liquidity may be less reliable and price volatility may be higher than that experienced in more developed economies. This may result in the fund suffering sudden and large falls in value
  • Funds with a single sector focus will typically be more volatile than funds which invest broadly across markets
  • Funds with a single country focus will typically be more volatile than funds which invest broadly across markets and geographies
  • Region-specific funds have a limited investment scope and are susceptible to a decline in the region in which they invest. Therefore, these funds may be more risky than those which invest more broadly across markets and geographies
  • Countries where political leadership is either unstable or where it exerts a very strong influence on markets and business practices may be subject to greater volatility. Political risk may include potential for currency controls which would disrupt efficient financial markets
  • Limited transparency is typically a feature of both hedge funds and funds of funds. Funds of funds rely on underlying managers’ allocations and holdings may be less transparent than in single manager long-only funds. Furthermore, hedge funds in particular may have highly tactical investments along with less frequent and less stringent reporting requirements which does not provide investors with a picture of holdings on any given day
  • Currency may have either a direct or indirect effect on individuals’ investments. Where the reference currency is different from the reporting currency, foreign exchange movements will directly impact the value of the holdings. Currency will indirectly impact the value of the underlying investments as foreign exchange movements strongly influence the market economy and the competitiveness of both domestic and international companies. Funds which try to hedge to a reference currency can mitigate the direct impact of currency movements but cannot completely isolate the indirect effects of foreign exchange movements
  • Where investment decisions are made by an individual or a very small team, the potential loss of any one individual represents a significant risk to the ongoing viability of the fund
  • Passive Index funds are designed to track the reference index before fees and expenses. However, these funds may deviate from the index depending on several factors including: how fully the fund replicates the index, if the makeup of the index changes and if dividends are not fully captured
  • Smaller Company Risk – Small companies may be less liquid than larger companies and therefore price movements in securities of smaller companies may be more volatile and involve greater risk

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