Here's a rundown of the 3 portfolios under HSBC's Managed Solutions series

Find out how you can invest in Singapore.

HSBC recently introduced two new multi-asset investment platforms in Singapore.

Here's more from HSBC:

The new Asia Focused Growth and Asia Focused Conservative, targeted at aggressive and conservative investors respectively, are the latest investment vehicles developed by HSBC to help its customers achieve their long-term wealth objectives through active and flexible allocation over a broad range of asset classes in a diversified portfolio professionally managed by investment experts and with a focus on Asia.

Launched on the back of the successful HSBC GIF Managed Solutions – Asia Focused Income, they are the newest additions to the HSBC Managed Solutions series which now comprise the complete suite of three different investment solutions available to retail investors here.

The HSBC Managed Solutions series is a unique investment proposition designed to help retail investors accumulate wealth over a long-term horizon by adopting a flexible and disciplined investment process defined by asset allocation and diversification. It helps investors navigate through different market cycles and across a broad range of asset classes, with a minimum of 70% invested in the Asia Pacific ex-Japan region.

The three portfolios in the Managed Solutions series – Asia Focused Growth, Asia Focused Income and Asia Focused Conservative – are tailored towards aggressive, moderate and conservative investors respectively, effectively addressing the wealth needs of a broad swath of retail investors here according to their different risk profiles.

The Asia Focused Growth can invest up to 100% in equities and therefore is suitable for aggressive investors who seek equity-like returns and high growth opportunities, whilst preferring to remain diversified across asset classes.

The Asia Focused Conservative will appeal to cautious investors who seek long-term stable returns while wanting to participate in Asian growth opportunities but with relatively low volatility. It can invest up to 85% in government bonds and up to 70% in Asian investmentgrade bonds. The first fund in the series – the Asia Focused Income – provides monthly dividend payouts and is positioned for moderate investors who seek regular, sustainable income and growth opportunities, predominantly from Asian assets. It was the best-selling multi-asset fund in the Hong Kong retail space in 2012 and has now grown to more than US$1.5 billion in size. The fund is about 22.6% invested in equities as of end March 2013.

Mr Denis Gould, Chief Investment Officer, Hong Kong, Multi Asset and Wealth for HSBC Global Asset Management, who also manages the series, said: “The Managed Solutions portfolios are not constrained by static allocations, and can significantly change their composition as and when attractive investment opportunities arise. 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 assetallocation process. HSBC’s Managed Solutions has been designed with this in mind to help investors achieve their wealth objectives.”

Sten Ankarcrona, Chief Executive Officer, HSBC Global Asset Management Singapore, said: “We all know it is very difficult to time the market. For example, between 2007 and 2012, Asian equities and Asian bonds took turns to outperform each other every other year. Most retail investors end up buying high and selling low as a result of this unpredictability. It is, therefore, better to leave this task to experts who are trained to do so.”

HSBC’s Managed Solutions is designed for this very purpose of allowing retail investors to delegate investment decisions to experienced professionals who will manage the portfolios on their behalf in a disciplined manner by diversifying and moving flexibly into undervalued asset classes which are likely to perform well over the long term, taking into consideration different risk preferences.

Mr Paul Arrowsmith, Head of Retail Banking and Wealth Management, HSBC Singapore said: “There is a broad base of investors with varying risk profiles who need a simple, all-in-one solution as one of their core investment holdings which can weather market volatility. The Managed Solutions series can help investors capture the best opportunities across diversified asset classes by taking a disciplined approach and long-term view of the market.”

“The three portfolios are professionally managed by our award-winning expertise in Asian fixed income and Asian equities with each solution carefully tailored to the individual needs and risk appetites of investors here. The focus on Asia allows us to benefit from strong growth drivers and fundamentals in the world’s fastest growing region where we see good prospects to unlock value in Asian assets,” added Mr Arrowsmith.

Available exclusively at all HSBC branches, all three funds require a minimum investment amount of $5,000 in USD, SGD, AUD or EUR. SGD-, AUD- and EUR-hedged share classes are available which allow investors to benefit from direct capital appreciation of the underlying assets in USD by erasing the effects of foreign exchange volatility. 

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