HSBC Global Private Banking launches digital DPM capabilities for clients in Asia
First in Asia to offer DPM on a mobile app .
HSBC Global Private Banking (“GPB”) today announced the launch of its discretionary digital platform in Asia, making the Bank first in the region to offer discretionary portfolio management on a mobile app. This new feature enables private banking clients1 to subscribe and reallocate their discretionary portfolio via the HSBC GPB’s mobile apps, giving them 24/7 access to portfolio holdings and manager updates.
This discretionary programme, which is now available online, was launched in May 2021 as a new pillar of HSBC GPB’s core DPM solutions. It uses building blocks to construct clients' portfolios and is exclusively for its clients in Asia1, with a minimum investment of USD200,000. Discretionary portfolio building blocks offer equity, fixed income and multi-asset portfolios, managed for HSBC GPB by HSBC Asset Management and third-party managers. It is suitable for clients looking to build globally diversified discretionary portfolios that can be customised based on their needs, attitude to risk and investment objectives. This new DPM strategy represents over 10% of HSBC GPB’s DPM assets under management in Asia.
Siew Meng Tan, Regional Head of HSBC Global Private Banking, Asia Pacific, said: “In an increasingly challenging environment, more and more clients in Asia are opting for discretionary mandates to diversify their portfolios, build multiple income streams and take up defensive positions in high-quality companies to withstand market volatility and interest rate hikes. The new discretionary digital platform will enable us to serve the immense and fast-growing segment of underserved affluent-to-high net worth investors, giving them access to sophisticated and exclusive DPM portfolio building blocks, especially the next generation clients who are more hands-on in portfolio construction.”
Last year, HSBC GPB unveiled its new online trading platform for private banking clients in Asia2 to connect clients with the latest market opportunities and offer trading access to 10 key financial markets. The platform’s comprehensive product shelf has continued to expand, with fixed coupon notes and equity linked notes as well as funds added this year, alongside cash equities, exchange traded funds and foreign exchange, which were already available on the platform.
“Most discussions on DPM or portfolio construction today are still heavily reliant on face-to-face meetings, whether physical or virtual. The discretionary digital platform is built upon our strategic vision of making a broad product shelf and CIO3 content digitally available to our clients beyond the UHNW space. Having a simple yet powerful digital wealth management platform enabling investment at their fingertips has been a true game changer appreciated by many of our clients, especially digitally savvy millennials, who desire flexible means for more proactive wealth management, anytime and anywhere. In Hong Kong, 90% of our clients said that our digital services exceeded or met their expectations, a year-on-year increase of 5%," added Tan.