Discretionary Wealth Management

Transcription

1 Discretionary Wealth Management Specialist, Focused, Committed Using experience and expertise to invest for your future

2 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 it mean to?

3 The practical importance of wisdom 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. 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

4 Introduction to 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. * Dealing with experts focused on every aspect of Discretionary Wealth Management 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. *Source: HSBC Global Asset Management. Data as at 31/12/ Discretionary Wealth Management

5 The client process 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. 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. Speaking to the same specialists, who know what they re talking about Discretionary Wealth Management 3

6 Why choose us? 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. Global experience and expertise We aim to provide unique insights, investment opportunities and access to service excellence worldwide. 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. Specialist expertise and personal focus 5.3bn of funds under management through the Chief Investment Officer s team* Headquartered in Jersey Global research capability *Source: HSBC Global Asset Management (UK and Jersey). Data as at 31/12/11. 4 Discretionary Wealth Management

7 Service overview 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 Discretionary Wealth Management 5

8 HSBC Wealth Strategic Solutions Service 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 Portfolio aligned to your personal level of risk tolerance 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 6 Discretionary Wealth Management

9 HSBC Wealth Opportunities Service 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 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. 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 Emphasis on thematic investing Capital is not guaranteed Discretionary Wealth Management 7

10 HSBC Focus Service 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. 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 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. 8 Discretionary Wealth Management

11 HSBC Wealth Specialist Service 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 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 Discretionary Wealth Management 9

12 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 10 Discretionary Wealth Management

13 The security of being part of a global leader 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 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. 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. 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. Benefit from a Discretionary Wealth Management specialist Discretionary Wealth Management 11

14 Contact us 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) * dwm.clientenquiries@hsbc.com Web: *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

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16 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 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 All Rights Reserved /ME/0512