Multi-asset

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:

1. Long Term Asset Allocation – setting the portfolio's reference allocation
2. Active Asset Allocation – risk aware active positions against the portfolio's long term positioning, reviewed frequently to ensure portfolio dynamism
3. 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