Customised Portfolio Management Service

Transcription

1 Customised Portfolio Management Service

2 Customised Portfolio Management service Putting you at the heart of our investment thinking Would you like a wealth management service that is genuinely designed to meet your specific investment needs a flexible service that can be modified to keep pace with changes in your circumstances over time? Traditional portfolio management services tend to offer standardised risk options which determine how a client s money is managed. This kind of approach typically does not take into account a client s individual circumstances and their attitude or tolerance to risk. And, often, the portfolio can remain static despite the possibility of your needs changing over time. Our Customised Portfolio Management service is different. We use your attitude to risk to guide how your money is invested. In constructing your portfolio we listen very closely to you so that we may understand exactly what you are hoping to achieve and the level of risk that you are prepared to accept to meet those goals. Not only that, but our Customised Portfolio Management Service has been designed by HSBC Global Asset Management to bring you leading edge investment techniques to get the very best out of your investments. It provides you with access to many different types of investment both mainstream and alternative some of which are not easily available to the private investor. A three stage process 1. Understanding your needs We ask you to fill out a short questionnaire about what you are hoping to achieve through your investments, how you are planning to use the money that is generated, what your time horizon is and how much risk you are prepared to accept. The results of this questionnaire give us a detailed understanding of your investment profile. 2. Structuring your portfolio These results are mapped into a strategic asset allocation for your portfolio, allowing us to recommend the most appropriate portfolio structure for you. The portfolio is then optimised, which means that we find the best combination of investment instruments to ensure maximum long-term return for your risk profile. 3. Ongoing active management of your portfolio Once we have determined the best long-term framework for your portfolio, your investments are managed on a daily basis in order to take shorter-term decisions aimed at capturing the opportunities that present themselves in the markets. The result is an innovative, personalised portfolio, accurately aligned to your performance requirements but does so in a manner consistent with the risk level that you are able to accept.

3 Your portfolio is structured from a wide choice of investment instruments Traditional portfolio managers typically use standard industry benchmarks (such as the FTSE All Share Index or the Dow Jones Index) to guide and structure their investment strategies. As the Customised Portfolio Management service uses customised benchmarks, we have the freedom (where appropriate) to invest in a wider range of investment instruments than might normally be used. This means you benefit from a greater diversification of risk from a larger choice of investment opportunities. Fixed Income > Aims to provide stability, income and lower volatility > Index-linked instruments offer the opportunity to reduce the effect of inflation on portfolios > Short-term liquidity aims to provide enhanced returns over cash. Equities > Have the potential to provide better long-term returns but can be volatile > The Customised Portfolio Management Service can invest in all the world s recognised markets. Alternatives > With a long and successful investment track record, HSBC has particular expertise in these kinds of instruments (hedge funds, private equity funds, property funds, structured products) > Hedge Funds can offer consistent returns that are uncorrelated with other asset classes > Property offers a good way to spread risk and can offer protection against inflation > Private equity can offer high returns but may be illiquid and volatile.

4 The expected average risk and return characteristics of investments Source: HSBC Global Asset Management Past performance cannot be taken as a guide to future returns and in particular, clients may not get back the amount originally invested. Performance is based on a model portfolio and does not reflect private client portfolio performance. How we construct your portfolio The graph above shows the principles behind the Customised Portfolio Management Service. The curved line known as the efficient frontier represents a boundary defining all possible combinations of the assets shown. Each point on the line demonstrates a possible portfolio that has the highest level of historic return for any given level of historic risk. Our aim is optimally to combine these assets in order to deliver portfolios that generate the highest expected long-term return for a specific level of risk. It makes sense that different combinations of investments will have different risk / return characteristics as opposed to any one investment on its own. This comparison demonstrates that a skillful combination of investments can make a significant difference to performance.

5 Leveraging the global network and resources of the HSBC Group You have the reassurance of knowing that the investment decisions that affect your portfolio are being made within a rigorous and disciplined process which draws on the global resources of one of the world s premier banking groups. Your dedicated Investment Manager When you invest in the Customised Portfolio Management service you will be allocated your own Investment Manager, who has accountability for your portfolio. His or her job is to keep abreast of your circumstances in order to ensure that your portfolio is managed appropriately for every stage of your investing lifecycle. We take care of your administration We realise that busy people do not have the time to deal with the administrative burden associated with managing a portfolio. The Customised Portfolio Management Service offers you comprehensive custody and nominee facilities, including dividend or interest collection. We also provide you with a taxreporting package that will help you to make the most of your tax situation. Why should you give careful consideration to the Customised Portfolio Management Service? > Your portfolio is constructed according to your requirements and your tolerance of risk > Our Customised Portfolio Management Service has the flexibility to modify your investment strategy as your circumstances or requirements change > Sophisticated investment techniques provide you with a greater return than might normally be achieved from your stated risk profile > You enjoy the services of a dedicated and accountable portfolio manager > It provides access to alternative investment products which are not usually easily accessed by private investors > You have the reassurance of a disciplined investment process with in-depth monitoring and controls from one of the world s premier investment houses. > It harnesses the expertise and global reach of HSBC a global expert in the investment world On-line tracking of your portfolio You can consult your portfolio at any time via fully encrypted, password protected access to our website, providing you with daily valuations, transactions and dividend details. Regular investment reviews We will also send you written reviews of your portfolio on a half-yearly basis together with a commentary on our outlook for your chosen strategy and a detailed performance analysis of your portfolio.

6 Contact Emaar Square Telephone Building No 5 privateclient.services@hsbc.com 6th Floor Web PO Box Dubai UAE Regulatory information This information is issued by HSBC Private Bank (UK) Limited, trading as HSBC Global Asset Management. For the information of the addressee only and should not be reproduced and/or distributed to any other person. The performance information shown refers to the past and cannot be taken as a guide to future returns. There are additional risks associated with specific alternative invest ments such as private equity, hedge funds and commodities within the portfolios; these investments may be less readily realisable than others and it may therefore be difficult to sell in a timely manner at a reasonable price or to obtain reliable information about their value; there may also be greater potential for significant price movements. The value of investments and any income from them can go down as well as up and you may not get back the amount originally invested. Investments in emerging markets are by their nature higher risk and potentially more volatile than those inherent in established markets. Where overseas investments are held the rate of exchange may cause the value of such investments to go down as well as up. HSBC Global Asset Management is a trading name of HSBC Global Asset Management (UK) Limited and HSBC Private Bank (UK) Limited. Both are registered in England at 8 Canada Square, London E14 5HQ and are authorised and regulated by the Financial Services Authority. Copyright HSBC Global Asset Management All Rights Reserved. This product is marketed in a sub-distributing capacity on a principal to principal basis by the HSBC Global Asset Management MENA, a unit that is part of HSBC Bank Middle East Limited, PO Box 66, Dubai, UAE, which is incorporated and regulated by the Jersey Financial Services Commission. Services are subject to the Bank s terms and conditions. HSBC Bank Middle East Limited is a member of the HSBC Group. The information provided has not been prepared taking into account the particular investment objectives, financial situation and needs of any particular investor. As a result, investors using this information should assess whether it is appropriate in the light of their own individual circumstances before acting on it. The information in this document is derived from sources believed to be reliable, but which have not been independently verified. However, HSBC Bank Middle East Limited makes no guarantee of its accuracy and completeness and is not responsible for errors of transmission of factual or analytical data, nor shall HSBC Bank Middle East Limited be liable for damages arising out of any person s reliance upon this information. All charts and graphs are from publicly available sources or proprietary data. The opinions in this document constitute the present judgment of the issuer, which is subject to change without notice. This document is neither an offer to sell, purchase or subscribe for any investment nor a solicitation of such an offer. This document is intended for the use of institutional and professional customers and is not intended for the use of private customers. This document is intended to be distributed in its entirety. No consideration has been given to the particular investment objectives, financial situation or particular needs of any recipient. Any transaction will be subject to HSBC Bank s Terms of Business /0809