HSBC Asset Management for official sector institutions
We have a long track record in partnering with official sector institutions throughout the world.
At HSBC Asset Management, we pride ourselves in understanding and addressing the complex investment requirements and unique challenges faced by official institutions.
We have the privilege of serving some of the world’s largest central banks, sovereign wealth funds, public pension funds and other sovereign investors. Working as your trusted partner, our dedicated Official Institutions team are committed to helping meet your objectives and address your biggest concerns.
Together we thrive
Key benefits of investing with HSBC’s Official Institutions team:
- Comfort of working with a team which has extensive experience serving some of the largest institutional investors in the world
- Access to the extensive network of HSBC Group’s general management teams and local coverage across 26 countries & territories, helping deliver your investment requirements
- A comprehensive range of leading investment solutions, tailored to meet even your most complex objectives
- Confidence of relying on a bank-owned asset manager where highly disciplined, globally-consistent risk and governance frameworks are paramount
In this challenging environment of prevalent market volatility and a shifting regulatory landscape.
Sovereign and other public sector investors have long been looking for solutions that might mitigate the extremely low yields delivered by traditional fixed income products. The two traditional levers to obtain higher yields – credit quality and duration – no longer suffice. We believe several options are available to help them to bolster their risk-return profiles – alternative weighting schemes and total return solutions, diversifying beyond developed-market investment-grade assets, or, taking a step further, exploiting illiquidity and complexity premia. We are well-known as a leading provider of fixed income solutions for sovereign investors, and as a leader in the most complex and research-intensive sectors.
Due to market volatility and growing pressure for low-cost solutions, risk-adjusted returns have become paramount. Our smart beta strategies such as factor-based investing and fundamental-weighting schemes seek to identify and harvest returns from a range of well-researched risk-premium sources and investor behavioural biases. Our strategies have a strong track record of accessing these returns within customised solutions for clients at competitive costs compared to traditional active approaches.
The financial relevance of environmental, social and governance (ESG) issues is coming into focus today as official investors position their portfolios for the future. We believe that ESG topics can have a material impact on companies’ fundamentals and performance over the longer term. ESG factors are linked to opportunities and risks which financial markets may not be pricing appropriately.
ESG analysis is a key component of our investment due diligence, whether we are evaluating a company’s credit or its equity. This is bolstered by the full integration of responsible investing within our investment culture.
Due to market inefficiencies prevalent in several of the Asian economies, there tends to be an under-representation in global indices and clients’ portfolios, despite relatively high growth rates. We leverage our in-house expertise and network across Asia to provide clients with exposure to these markets and to deliver diversification beyond Europe, the US and Japan.
Dialogue, training and partnership
Our primary objective is to support you in whichever way possible. This means keeping you informed of developments in global financial markets, making you aware of opportunities around the world, and training you to deal with the level of complexity of your investments.
We pride ourselves on our knowledge-sharing and on the resources we make available for our clients:
- Commitment to developing and continuing dialogue at all levels of the firm
- Customised reporting and the provision of training
- Design and execution of educational and communications programmes globally, including seminars, on-site training, regular access to our experts and access to the Group’s general management
Comprehensive thought-leadership and research
We strive to exceed our clients’ requirements and to generate value for them. To do this, we believe it is crucial to be at the forefront of economic, financial and regulatory changes that impact them, and we thus continuously analyse and comment on well-researched, observed and data-driven trends most relevant to official sector investors.
We share our insights and research on “hot topics" by participating in forums and through the regular publication of formal communications such as white papers.
We have a dedicated thought-leadership and research team and place emphasis on growing the resources in this space, as we believe this to be an area with significant value-add opportunities for our clients.