Given the fast pace of markets today and the challenges expected for the year ahead, it is critical to ensure your assets are in the right place at the right time. The challenge, though, is often finding the time do this with the competing pressure of family and business life.
So, how do you balance your personal and work life with managing your portfolio? That’s where discretionary investing comes in. This approach combines HSBC’s global expertise, including market outlook, research views and security selection, with a portfolio that suits your needs.
Typically, a discretionary portfolio will be managed for long-term growth and income. With this longer horizon, any market volatility at the time of investment should become less of a concern.
Navigating the market
There’s an expectation this year that the robust global growth that characterised the second half of last year will continue. Investment spending across the globe is seeing a recovery, helping provide a cyclical boost to productivity. There is also room for more employment growth globally.
Crucially, this potential increase of supply, alongside structural trends, should continue to weigh on inflation and keep Central Banks from tightening too much, with only the Federal Reserve meaningfully tightening policy, and then at a gradual pace.
Modest wage growth and relatively low rates should continue to support profit margins. Revenue growth should also increase with economic growth, creating a favourable environment for risk assets, such as equities and Emerging Markets bonds.
A rise in trade protectionism is a potential headwind, which can be managed through a focus on markets with strong domestic growth potential and a position in gold.
By taking this market outlook into consideration, you can build a discretionary portfolio that moderates risks and navigates the market.
How can discretionary benefit you?
Through discretionary investing, you gain back both free time and peace of mind. Rather than worrying about whether your assets are working hard, you can instead focus on business or personal interests with the confidence that your portfolio is being managed professionally. Here’s how HSBC’s Discretionary Portfolio Management Service works for you:
- We utilise our specialists: a number of specialists in investment strategy, markets and research, asset allocation, investment selection, due diligence and portfolio construction work together to create your portfolio.
- We stay focused: dedicated and experienced Discretionary Portfolio Managers focus on delivering your investment objectives.
- Your portfolio gets the attention it deserves: as the market conditions change, we make sure your investments have constant oversight to help the portfolio adapt.
- Prime access: you receive access to investment solutions which are often unavailable to individuals.
Through discretionary investments, you will receive a portfolio that delivers the Global Investment Committee’s strategic view. Your portfolio will be positioned using this information to select investments that deliver efficient returns while minimising costs.
So, whilst asset price valuations may not be as attractive as a few years ago, there are still opportunities for the astute investor in the year ahead. By diversifying your investments across a range of asset classes and committing to a long-term investment strategy like discretionary investments, history has shown the market rewards those investors who stay invested irrespective of the entry point.
Why not contact your Relationship Manager or Investment Counsellor to learn more about how discretionary investing could benefit your investment assets?