HSBC adds portfolio advisory and analytics for experienced investors
‘Wealth Portfolio Plus’ empowers experienced investors with more options, visibility and control over their portfolios.
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HSBC has recently launched a portfolio-based advisory service called ‘Wealth Portfolio Plus’ (WPP) for its HSBC Jade clients with investible assets of over USD1 million. The service, available in person and digitally, combines advanced analytics from Aladdin Wealth by BlackRock with portfolio-based advice from the bank’s Wealth experts. This helps clients to build well-diversified portfolios, using a broader set of products, to maximise returns while managing risk. Clients can see their portfolio breakdowns and risk analyses on their HSBC mobile app, where they can also test their portfolios against different market scenarios. The bank helps clients stay on track with their investments by delivering timely alerts and regular portfolio reviews.
“HSBC is the first retail bank to offer recommendations at a portfolio level to its clients, which was previously available only to private bank clients. Each WPP client has a dedicated HSBC Jade Director to look after their interests and to identify emerging opportunities. Clients are also telling us they prefer hybrid experiences to engage with us both in person and digitally, so we’ve also made WPP available on mobile,” says Sami Abouzahr, Head of Investments and Wealth Solutions, Wealth and Personal Banking, at HSBC.
Make informed decisions by evaluating ‘what-if’ scenarios
WPP is an advisory solution that takes into consideration the risk level of a client’s overall portfolio. Previously, experienced investment clients could only receive recommendations on individual products that aligned with their risk tolerance. With WPP, clients benefit from combining investments in a way that maximises their returns for the level of risk they want, and are able, to take. WPP covers a full range of investment solutions including unit trusts, bonds, equities, structured products, warrants and cash, so clients can assess and make decisions on their portfolio holistically.
WPP also provides clients the ability to see how different market events or scenarios could impact their portfolios, and road test their investments accordingly using sophisticated analytical tools. HSBC has teamed up with Aladdin Wealth by BlackRock to deliver institutional-grade risk analysis to its clients. Because WPP generates projections of portfolios up to 30 years into the future, HSBC Jade Directors can help clients identify investment options that suit different scenarios and their evolving risk appetite.
One of the compelling features of WPP is the automated alerts that notify clients if their portfolio holdings drift outside their risk appetite or chosen asset allocation. These alerts enable quicker responses to market changes, and HSBC Jade Directors can guide clients through any adjustments to get their portfolios back in-line, says Brian Hui, Head of Customer Propositions, International and Marketing, Wealth and Personal Banking, Hong Kong, HSBC. “Simply put, WPP gives HSBC clients a significant enhancement in service over what other retail banks normally provide to experienced investors.”
Advisory-based services will be the future
Though retail wealth has largely focused on product- or transaction-based risk conversations in the past, the trend is shifting towards more holistic advisory relationships. This brings value to investors by enabling a broader analysis of their portfolios and more paths to increasing their returns while limiting downside risk. With WPP and the professional advice of dedicated HSBC Jade Directors, clients can make smarter investment decisions in an uncertain market, says Abouzahr. “With WPP’s simulation of different scenarios, our clients can formulate investment strategies to counteract potential market shocks.”
WPP builds on the capabilities first launched with Wealth Portfolio Intelligence Service (WPIS) by adding more sophisticated risk analysis and allowing clients to receive advice that takes into account the different products and exposures in their portfolios. Since the introduction of WPIS to HSBC Jade and Premier customers in 2020, more than 170,000 risk assessment reports have been compiled, helping 51,000 customers rebalance their portfolios.
HSBC wins additional award for continued innovation in hybrid wealth
HSBC has recently won another award for the unique blend of human and digital support offered in WPP and WPIS, securing the Best Hybrid Wealth Management Offering from The Digital Banker’s Global Retail Banking Innovation Awards 2021. Last year, HSBC’s portfolio services also secured the top award for High Net Worth Services at Bloomberg Businessweek’s Financial Institution Awards.
“Tailor-made advisory services are just one example of how we will continue to embrace innovation that helps our clients achieve their financial goals – with the client’s journey at the centre of everything we do,” Hui concludes.
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