HSBC’s Bryce Wan and Gabriel Tam on preparing portfolios for a new reality

HSBC prides itself on its global network of clients, universal banking model and offices around the world. It considers these as key elements to help clients achieve their wealth goals.

Demand is coming from several fronts. From an investment perspective, clients want a high-quality, balanced portfolio. This includes global investment grade bonds along with exposure to hedge fund strategies that help manage volatility. “We try to design all-weather portfolios for our clients to stay invested and have positive returns throughout the economic cycle,” says Gabriel Tam, regional head of investment counsellors in Asia at HSBC Global Private Banking. “We are also seeing growing interest in principal protected payoffs that provide asymmetric returns to the upside.”

At the same time, clients are looking to embed sustainability within their decisions, from asset allocation to succession. “As families and family businesses consider succession and start to listen to the next generation, we are seeing a shift towards an increasing awareness of ESG factors,” explains Wan.

HSBC has an equivalent commitment at a group level—the bank aims to provide and facilitate US$750 billion to US$1 trillion of sustainable finance and investment by 2030, to support customers in their transition to net zero and broader sustainability.

More specifically, for HSBC Global Private Banking to achieve sustainability goals for itself and its clients, Tam identifies a mix of approaches: firstly, adopting an ESG-enhanced approach to help clients invest in companies with bigger ESG investment intentions; secondly, sustainable investing via themes such as renewables, water conservation and the circular economy; and thirdly, enabling clients to deliver impact as part of the intended investment outcome.

Among the factors sharpening the spotlight on sustainability is the increasing motivation among HNW and UHNW clients in Asia to create a better society and environment for the next generation. “Many clients are looking to help bring about positive change in terms of reducing problems linked to climate change through investments aligned with such sustainability objectives,” says Tam. 

For example, interest is growing in the clean energy transition, and supporting more sustainable and smarter cities. In response, HSBC Global Private Banking is designing ways for clients to capitalise on these opportunities through solutions that seek to deliver positive impact and sustainable returns. Wherever its clients are in their sustainable investing journey, it partners with internal and third-party product providers to offer a range of innovative sustainable investing solutions. A universal model is beneficial here, giving clients a broad platform to implement required changes. Wan says, “We take clients’ ideas from inception, to creation, through to execution.”

Investments in emerging markets may be extremely volatile and subject to sudden fluctuations of varying magnitude, due to a wide range of direct and indirect influences. Such characteristics can lead to considerable losses being incurred by those exposed to such markets.

This article is not a personalised communication from HSBC to you and does not constitute and should not be construed as legal, tax or investment advice or a solicitation of the sale or recommendation of any product or service. You should not make any investment decisions based mainly or solely on this article. All investments involve risks and may experience upward or downward movements and may even become valueless.

Issued by The Hongkong and Shanghai Banking Corporation Limited.