The HSBC world selection portfolios are globally-diversified, multi-asset growth portfolios that can hold both traditional investments such as bonds and equities, as well as modern assets including commodities and private equity. Many of these modern asset classes would not readily be accessible to the private investor.
There are five portfolios in the world selection range that cater to different levels of risk and return. These portfolio fund managers are picked by the multi-manager team at HSBC global asset management to deliver steady long-term returns, with low levels of volatility. The portfolios will also hold passive instruments such as Exchange Traded Funds (ETFs) when it is considered these present a better risk/reward profile than actively managed funds.
Ishrat Kiyani, head of premier banking and wealth management in UAE at HSBC, said: “Research by HSBC demonstrates that various asset classes will move in and out of favour at different stages in the economic cycle. By being truly diversified, this should, over the longer term, lead to smoother and more stable returns from your investment portfolio (compared to holding a single asset class).
“The role of multi-manager is critical as no single manager is likely to outperform in all market cycles at all times. All managers have different styles and understanding these styles will give an insight into the set of market conditions where a particular manager is likely to perform well. An added potential benefit of multi-manager is that it gives retail customers rare access to the best-in-class fund managers.”
