MARKETS & INVESTING | Roxanne Uy, Singapore

Be the first to know about HSBC's new Managed Solutions fund

The minimum investment amount is $5,000 in USD, SGD, AUD or EUR.

Following the successful launch of the HSBC GIF Managed Solutions – Asia Focused Income Fund in Singapore in November 2012, HSBC now launches the second solution in this same series.

We interviewed Mr Sten Ankarcrona, Chief Executive Officer of HSBC Global Asset Management (Singapore), to learn more about this new product.

SBR: Please tell us more about the product.
The new HSBC GIF Managed Solutions – Asia Focused Growth is an investment proposition designed to translate customer needs into a well-rounded wealth solution by adopting a flexible investment process to navigate through different market cycles and across a broad range of asset classes. It will also invest a minimum of 70% in the Asia Pacific ex-Japan region.

We all know it is very difficult to time the market. For example, from 2007 to 2012, the MSCI AC Asia Pacific ex-Japan Index (Asian Equities) and HSBC Asian Dollar Bond Index (Asian bonds) took turns to outperform every other year. Most investors end up buying high and selling low, as a result of this unpredictability.

Isn’t it better to delegate investment decisions to professionals who can diversify by moving flexibly into those asset classes which are likely to perform well over the long term? These experts can provide exposure to undervalued investment opportunities across asset classes in a disciplined manner according to investors’ risk appetite.

SBR: What is significant or unique about this product?
The HSBC Managed Solutions – Asia Focused Growth Fund has the following key distinguishing features:

• Multi-asset fund seeking long-term total return with the ability to invest across asset classes and globally, to capture high growth opportunities
• Invests a minimum of 70% in Asia Pacific ex-Japan asset classes, to take advantage of the growth in Asia
• Can have up to 100% equity exposure
• Suitable for aggressive investors with high risk tolerance and who seek equity-like returns and high growth opportunities, whilst preferring to remain diversified across asset classes
• Provides an all-weather portfolio where the fund manager will rebalance portfolio to capture best opportunities as market conditions change
• Investors avoid the risks of timing the market themselves and leave it to the experts to manage their investments over the long-term through different market cycles with active and flexible asset allocation
• Second fund to be launched under the HSBC Managed Solutions series
• Fund is available exclusively at HSBC branches only

SBR: Why should investors consider investing in it?
The Managed Solutions portfolios are not constrained by static allocations, and can significantly change their composition as attractive investment opportunities arise.

Investors benefit from three key strategic advantages for exposure to Asian assets:
1/ Home bias – higher comfort level for local investors and clearer understanding of risk and return.
2/ Strong growth drivers – pro-active government policy, rising corporate profits, low default and interest rates, rising GDP growth to support performance of Asian assets.
3/ Ample investment opportunities – historically low Asian equity valuations and robust fundamentals for Asian bonds indicate potential to unlock long-term value.

The new HSBC GIF Managed Solutions – Asia Focused Growth is, therefore, a good all-in-one vehicle for more aggressive investors to capture the investment opportunities in the world’s fastest growing region, customised to their risk tolerance level.

We believe that asset allocation is a key determinant of returns in the long term. To unlock the long-term value, it is important to have a carefully constructed, risk conscious, diversified and flexible asset-allocation process.

HSBC Managed Solutions was designed with the above objectives in mind.

SBR: Anything you'd like to add? 
The HSBC GIF Managed Solutions –Asia Focused Growth is available for subscription by retail investors exclusively at all HSBC branches in Singapore from next Monday, 11 March 2013. 

Minimum investment amount is $5,000 in USD, SGD, AUD or EUR. The SGD-, AUD- and EUR-hedged share classes, which are also available, allow investors to benefit from direct capital appreciation of the underlying assets in USD by erasing the effects of foreign exchange volatility.

The first fund of the series, HSBC GIF Managed Solutions – Asia Focused Income, was the best-selling multi-asset fund in the Hong Kong retail space in 2012 and was subsequently launched in Singapore, raising US$1 billion by the end of 2012.

We are confident that the second fund – Asia Focused Growth – will also enjoy a warm reception now that investors are slowly returning back to equity markets.

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