Discretionary Wealth Management
Specialist,
Focused,
Committed
What it
means to
be wise
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 it
mean to
be wise?
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’ve 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. 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
Of course every person’s financial position and needs are
Why it makes sense to choose Discretionary Wealth
unique, whatever stage of life they are at. You may be
Management from HSBC Global Asset Management
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.
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.
Dealing with experts
focused on every
aspect of Discretionary
Wealth Management
What it
means to
be wise
*Source: HSBC Global Asset Management. Data as at 30/09/2012.
2 Discretionary Wealth Management
The client process
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.
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.
Speaking to the same
specialists, who know
what they’re talking about
Discretionary Wealth Management 3
A wiser selection
Individual, long-term attention
Global experience and expertise
We focus entirely upon your needs and objectives.
We aim to provide unique insights, investment opportunities
First, we review your personal assets, liquid assets,
and access to service excellence worldwide. As one of the
financial assets, property, pension assets and liabilities and
world’s leading asset management businesses, HSBC Global
obligations. This gives us a detailed picture of your overall
Asset Management is on the ground everywhere you might
financial position, which enables us to construct a tailored
want us to be.
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
Specialist expertise
and personal focus
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
What it
means to
be wise
*Source: HSBC Global Asset Management (UK and Jersey). Data as at 02/01/2013.
4 Discretionary Wealth Management
Make the wisest choice
Choose the investment strategy that’s best for you
HSBC Wealth Strategic Solutions Service
Your Discretionary Wealth Manager will discuss your financial
Our multi-asset portfolio service has been designed around
circumstances and objectives with you, establish your attitude
a sophisticated investment process. For any given level of
to risk, and then help you decide which investment strategy
risk tolerance there is an optimum mix of assets that aims to
you feel most comfortable with.
maximise investment returns. The portfolio is then actively
managed around this specific risk profile.
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
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.
Involve regular, direct contact with your personal
Discretionary Wealth Manager
HSBC Focus Service
Provide ease of administration, incorporating custody
This gives you direct access to one of our specialist, single
and nominee facilities and tax reporting where appropriate
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
What it
means to
be wise
Discretionary Wealth Management 5
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.
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
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
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
Harnesses the expertise and global reach of HSBC
Global Asset Management and the HSBC Group
given level of risk there is an optimum mix of assets.
We calculate an objective risk tolerance level for you from
Tax efficiency through the subscription to ISAs
your questionnaire. This enables us to create a portfolio
Flexibility to alter the portfolio parameters as
that is designed to maximise long-term investment returns,
circumstances change
Available in Sterling, Euro and US Dollar currencies
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
Portfolio tailored to
your personal level
of risk tolerance
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
What it
means to
be wise
6 Discretionary Wealth Management
Investments in Emerging Markets are potentially higher
risk and more volatile than those inherent in established
markets
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 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.
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.
Key benefits
The greatest strength is the flexibility to invest across all
As the service is not constrained by a benchmark it has a
considerable degree of flexibility, enabling us to seek trading
asset classes
opportunities across all the major asset classes.
A diversified, active, value orientated approach
In keeping with the opportunistic philosophy of the service,
There is a strong emphasis on thematic investment ideas,
and a low correlation with the major asset classes
Non-benchmarked, allowing active positions to
the service has the ability to hold a high proportion of cash
and bonds to seek to preserve capital during market falls.
be taken in good and bad markets
Who it would suit
Available in Sterling, Euro and US Dollar currencies
People looking to beat cash, while focusing on preserving
capital and 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
Capital is not guaranteed
Active positions
can be taken in
both good and
bad markets
What it
means to
be wise
Discretionary Wealth Management 7
HSBC Wealth Specialist Service
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.
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
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
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
broader investment strategy
Regular portfolio reviews to adjust and adapt the portfolio
requirements to your needs
Wealth Charity Service
Focused on the financial needs of charities and not for profit
organisations
Investment solutions built to meet income needs and
How it works
Please see below for details on how each of our Specialist
expected total returns within risk controlled parameters
Diversified, multi-asset, optimised portfolios with a
Services can work to your benefit.
combination of conventional and alternative asset classes
Some Wealth Specialist Services and their benefits
Ethical overlays can be incorporated
Who it would suit
Investor Visa Service
Specialist investment service for United Kingdom Border
Clients with specialised and often complex financial needs,
Agency Tier 1 (investor) applicants
wanting a more individual solution, and with a sophisticated
Support for visa application as a UK investor, including
understanding of the concept of risk.
guidance on a range of suitable investment options
Sophisticated portfolio design and investment
selection process
Risk considerations
The value of investments and any income from them
can go down as well as up
Hearing clear views from
a specialist who knows
your situation and aims
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
What it
means to
be wise
8 Discretionary Wealth Management
higher risk and more volatile than those inherent in
established markets
The stories of four wise people
Private business owner
The corporate client
Mr W is a successful business owner with a long relationship
Mr Y is the Financial Director of a large limited company with
with HSBC, and has decided to sell his business. Mr W was
complex financial arrangements. He has several competing
introduced to HSBC Discretionary Wealth Management by
duties – to the board of directors, to the shareholders and
his HSBC Adviser to discuss how best to proceed given his
to the staff. He is finding it increasingly difficult to decide on
circumstances, risk profile and investment objectives. Mr
the best investment strategy that provides enough growth
W has always been impressed with the levels of service
while having enough liquidity for tactical opportunities. He has
delivered by HSBC for both his personal and business banking
used HSBC for the company’s banking and was introduced
needs, and knows he can expect the same personal service
to a Discretionary Wealth Manager by his HSBC Adviser a
and joined up approach from HSBC’s private client investment
while ago. Mr Y considers him to be someone who listens to
specialists.
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
Preparing for retirement
meet his needs.
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,
The charity client
and he wanted to know if a Self Invested Personal Pension
Two newly appointed Trustees of Charity Z were concerned
(SIPP) might be appropriate for him. Mr X had the added
that no review of investment strategy or investment
concern that in the event of his early demise, his wife, who
management mandate had occurred for many years.
has little interest in the workings of the portfolio, would be
They contacted their HSBC Independent Financial Adviser,
well looked after. A long‑term client of HSBC, Mr X has found
who brought in a charity expert from HSBC Global Asset
Discretionary Wealth Management has delivered what they
Management. First, this enabled a review of the Charity’s
said they would, and feels that the bond of trust that has
compliance with the Charity Commission to be completed.
developed with his Discretionary Wealth Manager will serve
Subsequently a tailored investment management solution
his wife well.
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 it
means to
be wise
Names have been withheld and events altered where necessary
to ensure client confidentiality.
Discretionary Wealth Management 9
What you can expect from us
Excellent, individual client service
Comprehensive and flexible reporting
Our ability to tailor our service to meet the requirements
We believe it is important to keep clients abreast of all
of each client is highly valued by them. We pride ourselves
material information or changes concerning their portfolio.
on our client service. Your Discretionary Wealth Manager is
Our services include regular review meetings and ad-hoc
responsible for:
conversations as desired. Your Discretionary Wealth Manager
Working closely with you to determine investment profile
and performance objectives, both initially and on an
provides detailed investment and account holdings reports
on a semi-annual basis (or more frequently, if required):
ongoing basis
Portfolio valuation
Ensuring fund management activity is consistent with
Performance summary
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
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
What it
means to
be wise
10 Discretionary Wealth Management
The security of being part of a global leader
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’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,
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.
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.
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.
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.
Benefit from a Discretionary
Wealth Management specialist
What it
means to
be wise
Discretionary Wealth Management 11
Contact 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
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.
12 Discretionary Wealth Management
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