discretionary wealth management · service overview discretionary wealth management 5 choose the...

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


*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.


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



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


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


Portfolio aligned 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, 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


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


Emphasis on thematic investing


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.

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




Currency exchange movements may cause the value

of overseas investments to fluctuate



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


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




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



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



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.


*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.


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

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 2010. All Rights Reserved 23035

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