discretionary wealth management - hsbc global … 1 the practical importance of wisdom 2 a wise...

What it means to be wise

Specialist, Focused, Committed

Discretionary Wealth Management

Using experience and expertise to invest for your future

Contents

1 The practical importance of wisdom

2 A wise decision

3 The client process

4 A wiser selection

5 Make the wisest choice

6 HSBC Wealth Strategic Solutions Service

7 HSBC Wealth Opportunities Service

8 HSBC Wealth Specialist Service

9 The stories of four wise people

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’ve 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. However, 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 guidance...

Discretionary Wealth Management 1

A wise decision

Dealing with experts focused on every aspect of Discretionary Wealth Management

Of course every person’s financial position and needs are

unique, whatever stage of life they are at. You may be

working full time and have a multi-layered and complex

financial position and plans. You may be winding down

your full time work and want to simplify your financial

arrangements. Or you may be retired and want to ensure

a comfortable life with everything organised.

But 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

guidance. 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

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 investment 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 $417 billion funds under management

worldwide. *

Part of the HSBC Group. Discretionary Wealth Management

is provided by HSBC Global Asset Management, part of one

of the largest and most well-respected financial services

organisations in the world.

2 Discretionary Wealth Management


*Source: HSBC Global Asset Management. Data as at 30/09/2012.

Speaking to the same specialists, who know what they’re talking about

1 Understand your needs

Through discussion and in conjuction with your HSBC

Adviser, gain a clear understanding of your circumstances

and plans, supported by a specialist risk 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 and your advisers 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 have a straightforward, five-stage process, centred on

optimising your portfolio to fit your individual requirements

and objectives.


The client process

A wiser selection

*Source: HSBC Global Asset Management (UK and Jersey). Data as at 02/01/2013.

Individual, long-term attention

We focus entirely upon your needs and objectives.

First, we review your personal assets, liquid assets,

financial assets, property, pension assets and liabilities and

obligations. This gives us a detailed picture of your overall

financial position, which enables us to construct a tailored

investment solution for you.

It’s a process we’ve been successfully managing now

over many years in the Discretionary Wealth Management

business. From our early days as a London-based stockbroker

to our current global capabilities in 20 international locations,

we’ve helped generation after generation to protect and

grow their wealth.

Our specialists put you first

Discretionary Wealth Management is part of HSBC Global

Asset Management, the specialist investment business

of the HSBC Group. We offer a personalised portfolio

management service to clients with £500,000 or more

to invest.

We have a team of over 30 professionally qualified

Discretionary Wealth Managers dedicated to servicing

our clients.

£5.3bn of funds under management through the

Discretionary Wealth Management team*

Headquartered in London, with offshore capabilities

Global research capability

Global experience and expertise

We aim to provide unique insights, investment opportunities

and access to service excellence worldwide. As one of the

world’s leading asset management businesses, HSBC Global

Asset Management is on the ground everywhere you might

want us to be.

Specialist expertise and personal focus



Make the wisest choice


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:

Have an actively managed, discretionary portfolio

Are driven by a defined investment process

Have a highly competitive fee structure

Have secure internet access to portfolio values and activity

Involve regular, direct contact with your personal

Discretionary Wealth Manager

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

This aims to deliver lower portfolio volatility where investors

require an element of capital preservation. Importantly the

strategy’s asset allocation is not governed by any benchmark.

Whilst not guaranteed, 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 equities,

as well as a variety of Bond/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, including our Investor Visa Service,

Wealth Charity Service, Satellite Benchmark Service and

other bespoke portfolios.

Benefiting from a highly competitive fee structure


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 and

Hedge Funds

Harnesses the expertise and global reach of HSBC

Global Asset Management and the HSBC Group

Tax efficiency through the subscription to ISAs

Flexibility to alter the portfolio parameters as

circumstances change

Available in Sterling, Euro and US Dollar currencies

How it works

All investment assets have different characteristics and it is

how assets are combined that can make the difference. The

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 created to suit your

risk profile.

To do this we gather key pieces of information about your

willingness and ability to accept risk. 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. Your portfolio is

measured against a composite benchmark based on

the selected asset allocation.

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


Portfolio tailored to your personal level of risk tolerance


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 and 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 than other services.

The aim is to out-perform cash (LIBOR) 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

A diversified, active, value orientated approach

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 Sterling, Euro and US Dollar currencies

Risk considerations

The value of investments and any income from them can

go down as well as up


Currency exchange movements may cause the value of

overseas investments to fluctuate



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


Active positions can be taken in both good and bad markets


Where appropriate, we can also offer you a range of

specialist services. These include our Investor Visa Service,

Wealth Charity Service, Bond and Fixed Income Service,

Satellite Benchmark Service and other bespoke portfolios.

Key benefits

Your Discretionary Wealth Manager can call upon the

services of our Chief Investment Office (CIO) team, and

other members of the wider HSBC team, as required

You receive a service that fulfils a specific role within your

broader investment strategy

Regular portfolio reviews to adjust and adapt the portfolio

requirements to your needs

How it works

Please see below for details on how each of our Specialist

Services can work to your benefit.

Some Wealth Specialist Services and their benefits

Investor Visa Service

Specialist investment service for United Kingdom Border

Agency Tier 1 (investor) applicants

Support for visa application as a UK investor, including

guidance on a range of suitable investment options

Sophisticated portfolio design and investment

selection process

HSBC Wealth Specialist Service


Bond and Fixed Income service

A variety of Bond/Fixed Income portfolios can be offered

A range of credit ratings available, depending on risk profile

Satellite Benchmark Service

Complement your principal investment strategies or

reflect your own broader financial perspective

Satellite benchmarks do not have exposure to Hedge Funds,

Commercial Property or Private Equity

Wealth Charity Service

Focused on the financial needs of charities and not for profit

organisations

Investment solutions built to meet income needs and

expected total returns within risk controlled parameters

Diversified, multi-asset, optimised portfolios with a

combination of conventional and alternative asset classes

Ethical overlays can be incorporated

Who it would suit

Clients with specialised and often complex financial needs,

wanting a more individual solution, and with a sophisticated

understanding of the concept of risk.

Risk considerations

The value of investments and any income from them

can go down as well as up


Currency exchange movements may cause the value

of overseas investments to fluctuate



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


The stories of four wise people

Names have been withheld and events altered where necessary to ensure client confidentiality.


Private business owner

Mr W is a successful business owner with a long relationship

with HSBC, and has decided to sell his business. Mr W was

introduced to HSBC Discretionary Wealth Management by

his HSBC Adviser to discuss how best to proceed given his

circumstances, risk profile and investment objectives. Mr

W has always been impressed with the levels of service

delivered by HSBC for both his personal and business banking

needs, and knows he can expect the same personal service

and joined up approach from HSBC’s private client investment

specialists.

Preparing for retirement

Mr X had a portfolio that he wanted to get into proper shape

for his retirement. His objectives were to minimise risk while

reaping a reasonable, steady rate of return for his retirement,

and he wanted to know if a Self Invested Personal Pension

(SIPP) might be appropriate for him. Mr X had the added

concern that in the event of his early demise, his wife, who

has little interest in the workings of the portfolio, would be

well looked after. A long-term client of HSBC, Mr X has found

Discretionary Wealth Management has delivered what they

said they would, and feels that the bond of trust that has

developed with his Discretionary Wealth Manager will serve

his wife well.

The corporate client

Mr Y is the Financial Director of a large limited company with

complex financial arrangements. He has several competing

duties – to the board of directors, to the shareholders and

to the staff. He is finding it increasingly difficult to decide on

the best investment strategy that provides enough growth

while having enough liquidity for tactical opportunities. He has

used HSBC for the company’s banking and was introduced

to a Discretionary Wealth Manager by his HSBC Adviser a

while ago. Mr Y considers him to be someone who listens to

what he wants, who has the experience to understand his

company’s overall financial situation and objectives, and when

necessary has the right connections with experts who can

meet his needs.

The charity client

Two newly appointed Trustees of Charity Z were concerned

that no review of investment strategy or investment

management mandate had occurred for many years.

They contacted their HSBC Independent Financial Adviser,

who brought in a charity expert from HSBC Global Asset

Management. First, this enabled a review of the Charity’s

compliance with the Charity Commission to be completed.

Subsequently a tailored investment management solution

to meet the Charity’s financial needs with regard to income,

growth and risk was proposed which resulted in the

appointment of HSBC Global Asset Management as the

Discretionary Wealth Manager.

Carefully managing the wealth of affluent investors for generations


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. Your Discretionary Wealth Manager is

responsible for:

Working closely with you to determine investment profile

and performance objectives, both initially and on an

ongoing basis

Ensuring fund management activity is consistent with

your investment profile and objectives

Providing regular reporting to you on portfolio activity

and performance

Attending meetings with you to report 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 (or more frequently, if required):

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


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 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. In the UK, Midland Bank, which merged

with HSBC in 1992, was founded in Birmingham in 1836.

HSBC’s global presence

With headquarters in London, HSBC now has around

1,500 branches across the UK. 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 is listed on the London, Hong Kong, New York

and Paris stock exchanges.

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 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.


HSBC Global Asset Management (UK) Limited, First Floor, 78 St James Street, London, SW1A 1EJ

*Lines are open Monday to Friday (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.

If you feel it’s time for you to begin a partnership with a

dedicated HSBC Discretionary Wealth Manager, who is always

available to discuss your investments, then please contact us

today. Your HSBC adviser will also be able to give you further

information.

Investor Services Tel: 08456 066 286 (lines are open 9 am to 5 pm*)

Email: [email protected]

Web: www.assetmanagement.hsbc.com/uk/dwm

Contact us


This information is issued by HSBC Private Bank (UK) Limited, trading as HSBC Global Asset Management. The views and opinions expressed herein were held at the time of preparation and are subject to change. Legislation and tax practice may change in the future. Tax treatment is based upon individual client circumstances. 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. Authorised and regulated by the Financial Services Authority. Copyright © HSBC Global Asset Management (UK) Limited 2013. All rights reserved. 23226/GD/0113/FP13-0152/Exp 23/07/2013

discretionary wealth management - hsbc global … 1 the practical importance of wisdom 2 a wise...

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