Multi-asset
Multi-asset strategies are targeted to meet a range of investment objectives which reflect our diverse client base, including pension plans, insurance companies and sovereign entities.
View full list of multi-asset strategies.
Our philosophy
Our multi-asset investment philosophy is based on the belief that:
- Markets are inherently inefficient over the short to medium term
- Asset prices exhibit excess volatility, relative to fundamentals, often leading to market mispricing
- However, markets can be expected to revert to a measure of 'fundamental value' over the long term
- We believe active asset allocation based on valuation can exploit this market over-reaction and mean reversion
- Asset allocation is the key driver of portfolio return and must be dynamic
Our process
Following on from this philosophy, we aim to develop:
- Robust valuation metrics to review the long term return potential on all available asset classes, on an ongoing basis
- An investment strategy that is adjusted accordingly, shifting portfolio allocations toward asset classes with the best prospective risk-adjusted returns
- Fulfilment that aims to capture the beta characteristics of the targeted asset classes on a cost efficient basis
To achieve this we:
- Use asset valuation tools in a systematic way to project future asset class returns
- Construct a dynamic asset allocation policy to exploit shifts in prospective returns across assets
- Employ a robust optimisation process, enhanced by considered qualitative judgement, and a disciplined rebalancing of portfolios
- Carefully manage portfolio risk as well as return potential
- Choose the most efficient instrument for execution from a risk, return and cost perspective
The investment process for our core multi-asset solutions consists of three key stages:
- Long Term Asset Allocation – setting the portfolio's reference allocation
- Active Asset Allocation – risk aware active positions against the portfolio's long term positioning, reviewed frequently to ensure portfolio dynamism
- Portfolio Construction – implementation and monitoring of the portfolio
HSBC strengths
- We leverage the insights of a wide range of global teams: macro economists, equity and fixed income investment teams, research specialists that focus on portfolio design and analytics, and product specialists
- Our strategies benefit from years of experience in advising clients on investment guidelines, benchmarks and risk tolerance criteria, together with an extensive knowledge of local regulation and industry trends
The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested.
Multi-asset strategies invest across different asset classes (e.g. equities, fixed income, alternative, cash equivalents) which may expose the portfolio to a combination of market, credit, currency, interest rate and liquidity risks.
Asset allocation decisions may not always produce the intended results and could lead to underperformance compared to single-asset strategies in certain market conditions.
Diversification does not ensure a profit or protect against a loss in declining markets.
Past performance is not a reliable indicator of future results.
Investors should carefully review the fund’s investment objectives, risks, charges, and expenses in the Prospectus or Offering Document before investing.
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