Asset Management Solutions for Global Corporations

Transcription

1 Asset Management Solutions for Global Corporations For Professional Client and Institutional Investor use only Non-contractual document

2 At HSBC Global Asset Management, we offer Global Corporate clients products and services to manage the risks and costs to their balance sheets We are proud to say that we are the asset manager of one of the world s best banks 1. And we share the benefits of being part of HSBC: we are fully integrated with the universal banking proposition, which means clients can benefit from holistic and consistent global coverage of products and services. We are global with local experts. Simply, we draw on local knowledge and decision-making and combine it with our global research and investment platforms. This allows us to provide a unique infrastructure in terms of breadth and depth of expertise. We enable global corporations to benefit from a centralised investment strategy with local vehicles to provide greater ease of governance and reporting, allowing global players to receive high and competitive standards no matter where they operate 2. We help manage the risks and costs to a corporation s balance sheet: cash management and pension solutions. With consistent coverage, consultative approach, strong governance and innovation through dialogue, our objective is clear: we want to be your strategic partner, globally and over the long term. 1. Source: Euromoney Awards for Excellence AMG client servicing in Argentina, Australia, Austria, Bermuda, Canada, China, France, Germany, Hong Kong, India, Italy, Japan, Jersey, Luxembourg, Malta, Mexico, Saudi Arabia, Singapore, Spain, Sweden, Switzerland, Taiwan, Turkey, UAE, UK, USA 2

3 A global partner for global corporations As the asset management firm within HSBC, our focus with Corporate clients is to provide bespoke solutions to the risks and costs to your balance sheet (cash flow management and pension funds, either Defined Benefit and Defined Contribution schemes) Our customisation services allow us to tailor portfolios to meet your requirements in terms of objectives (such as capital preservation, liability matching, regulatory capital budgeting, total return strategy), and also in terms of your investment horizon, risk appetite and performance target We deliver on our fiduciary responsibilities by managing risk as much as performance Our approach combines global investment teams with local implementation, which brings insights from other markets and allows us to deliver cross-border solutions Our local Sales and Client Management teams offer global pensions and investment expertise #4 in terms of global coverage, among the top 100 crossborder asset managers 1 26 countries with onthe-ground client service 3 14 countries manufacturing products 2 35 countries where HSBC GIF funds are registered for distribution 4 Providing global and local support to address cross-border challenges Stakeholder Management Performance and risks Understanding the challenges Meeting the demands of Boards, Management, Trustees and Regulators Working with a company structure Global reporting and/or insight requirements Managing local and global needs Fulfilling ESG expectations Complex funding/balance sheet risks Consistency of risk-return management to deliver expected benefits locally without cash flow issues (margin, cash-calls) How we address these challenges Active involvement with policy-makers Products and tailored solutions help sponsors deliver their objectives Detailed reporting and research that offers insight ESG integration into the investment process Advisory and overlay management services to large pension fund clients Investment solutions with global and local funds Investment processes can provide global consistency of approach with local adaptation and implementation Governance Achieving global consistency with the flexibility to meet local competitive needs Transparency and control for the headquarters from local regimes and reporting standards Global processes to deliver local solutions facilitating cross-border harmonisation Global, aggregated reporting of locally-delivered investments Cost Efficiency and Value Service / Support Optimising structures to gain scale benefits and reduce complexity Costs and inefficiencies internally, operational areas and governance in particular Concentrate investments to reduce fees and complexity (oversight costs and risk management) Lack of support at global or local level leading to lack of transparency or understanding Adapting to changes in corporate investment and structural needs Reporting and member support Regulatory impact on business needs Global tax-transparent platforms, local investment infrastructure to support clients on the ground Full suite of investment strategies that can be customised for clients companies/schemes have access to best in breed investments Global-local model provides knowledge and an operating model to support multinationals Local experts to support all areas of a corporation Regulatory insight and solutions to mitigate impact 1. Source: Benchmark your Global Fund Distribution 2018, PWC, issued March As at June As at June Includes joint ventures: China (Jintrust) and Saudi Arabia. 4. HSBC GIF (Global Investment Funds) is an umbrella structure, offering investors a range of funds with different objectives and different strategies. Data as at June Not all sub-funds and share classes are necessarily registered in all countries. 3

4 4

5 Liquidity solutions for Treasurers Treasurers analyse their objectives and priorities for cash holdings, and constantly aim to deploy their cash balances effectively. In a changing regulatory and money market landscape, the role of treasurers is becoming more important than ever, to ensure institutions continue to meet the strategic goals for cash surpluses and remain in line with the risk budgets. With an eye on the regulatory reforms that may impact their investments, clients value us for insight and direction. Global Liquidity from HSBC Global Asset Management Our liquidity team within HSBC Global Asset Management is dedicated to helping organisations of every kind make their cash reserves work harder through intelligent investment solutions As part of the HSBC Group, we have local liquidity expertise across both core and emerging markets. This helps us to deliver global, multi-currency solutions to allow you to invest your cash in a consistently-managed liquidity product HSBC Global Asset Management provides a wide range of liquidity investment solutions. Our investment philosophy is that liquidity management must be focused on risk management. As such, we believe our responsibility is to aim to preserve capital and provide liquidity 1. With a consultative approach to working with you, solutions range from money market funds to highly customised portfolios Our key strengths A prudent low-risk cash management approach A detailed, considered set of investment policies covering risk aspects A structured and methodical, globally-consistent, investment process designed to deliver on its objectives Distinctive credit approval and limit-setting process The strategic importance of liquidity as an asset class allows HSBC to invest in high quality and appropriate level of dedicated resources Investment and credit teams across 10 locations globally provide local market knowledge Dedicated client service teams to provide timely support A full range of Liquidity investment strategies in multiple currencies HSBC manages USD60.1 billion in Liquidity assets in 11 currencies International Money Market Funds Domestic Capabilities Global Currencies Domestic Capabilities Local Currencies Segregated M andates US Dollar Sterling Euro Canadian Dollar Australian Dollar Euro Prime Government Treasury US Dollar US Government US Treasury Argentina Canada China Hong Kong India Taiwan Turkey Customised portfolios can be tailored toward your specific requirements Minimum size of USD100 million allows us to optimise diversification and enhanced returns Key Risks The value of investments can go down as well as up and as with any investment you may not receive back the amount originally invested. Exchange rate risk Investing in assets denominated in a currency other than that of the investor s own currency perspective exposes the value of the investment to exchange rate fluctuations. Credit risk Issuers of debt securities may fail to meet their regular interest and/or capital repayment obligations. All credit instruments therefore have potential for default. Higher yielding securities are more likely to default. Derivative risk The value of derivative contracts is dependent upon the performance of an underlying asset. A small movement in the value of the underlying can cause a large movement in the value of the derivative. Unlike exchange traded derivatives, over-the-counter (OTC) derivatives have credit risk associated with the counterparty or institution facilitating the trade. Operational risk The main risks are related to systems and process failures. Investment processes are overseen by independent risk functions which are subject to independent audit and supervised by regulators. Money Market Fund risk The fund aims to maintain a stable share price (excluding income) through investment in low risk, short-term securities. The market value of the securities held by the fund will fluctuate. During adverse market conditions there is no guarantee that a stable net asset value will be maintained. Asset backed securities (ABS) risk ABS are typically constructed from pools of assets (e.g. mortgages) that individually have an option for early settlement or extension, and have potential for default. Cash flow terms of the ABS may change and significantly impact both the value and liquidity of the contract. 1. Forward looking statements are not guarantees of future performance or events. Source: HSBC Global Asset Management as at June Not all capabilities are available in all countries. 5

6 Global investments for Pensions schemes Global Pension Schemes can benefit from our global investment platforms and local insight. Experienced teams focus on a wide range of strategies to work on your pension needs through a consultative approach. We understand the risk associated with managing pension schemes, specially when underfunded. For multinational companies we recognise that the risk is multiplied and made more complex the more countries you operate in. Pensions requirements are dependent on the scheme itself and the country where it operates. Local expertise allows us to be aware of the regulatory, macro and legal environment within each pension operates. As pensions have local differences due to the regulatory environment, you need a global asset manager who can offer a central globalised investment strategy with local vehicles to give greater ease of governance and reduced fees. We have a long track record within investments and we can offer a suite of core holdings to be a strategic partner. Managing liabilities for Defined Benefit schemes Delivering sustainable income for Defined Contribution For DB schemes, liabilities have been increasing due to greater life expectancy, changes in legislation, volatility in markets and low bond yields. Insurance options to buy out liabilities have become too expensive. Many DB scheme managers are concerned about how to meet pay-out commitments, but the issue of growing liabilities can also affect the company s credit rating and potential corporate events like IPOs. DC schemes increasingly focus on solutions that can deliver stable and sustainable retirement incomes. Employers want to facilitate sensible decision-making, particularly since levels of engagement of scheme members vary broadly across countries and age groups. They also want to offer reliable, good value solutions to members. To help DB schemes to overcome these challenges, we focus on cost-efficient core holding, globalisation of investments, strong risk management for better use of risk budgets, liability-focused strategies, highly diversified investment solutions and bespoke solutions. You can leverage our platform and our proven experience in multi-asset investing. We can help you design suitable schemes to help your members save for their retirement. We also offer specially-designed income solutions to meet scheme members needs at and throughout their retirement. Source: HSBC Global Asset Management as at June

7 7

8 Full range of strategies We manage a full range of strategies, including sub-funds of the HSBC Global Investment Funds, a SICAV registered in Luxembourg that functions as an umbrella structure, or bespoke mandates. The SICAV exists to offer investors a range of funds to match different objectives and different strategies, as listed below. The HSBC Global Investment Funds SICAV is currently registered for distribution in 1 : Austria, Bahrain, Belgium, Brunei, Chile, Czech Republic, Denmark, Finland, France, Germany, Greece, Hong Kong, India, Ireland, Italy, Japan, Jersey, Jordan, Lebanon, Macau, Malaysia, Malta, Netherlands, Norway, Oman, Poland, Portugal, Qatar, Saudi Arabia, Singapore, South Korea, Spain, Sweden, Switzerland, Taiwan, UAE and the United Kingdom. The value of investments can go down as well as up and as with any investment you may not receive back the amount originally invested. Fixed Income Global Capabilities Global Aggregate Global Inflation Linked Global Short Duration High Yield Global High Yield EMD Core EMD Local Debt EMD Hard Currency EMD Total Return EMD Inflation linked EMD Corporate Debt EMD Investment Grade Lower Carbon Regional Capabilities Asia Government Asia Credit Asia High Yield Euro Government Euro Short Duration Euro Aggregate Euro Credit Euro Credit Total Return Euro High Yield Country Capabilities Argentina Brazil Canada China Mexico Hong Kong India Indonesia Singapore Taiwan Turkey UK Passive Worldwide Regional Country Alternative Weighting Schemes Multi and single factor Value, Quality, Small Cap, Momentum, Low volatility Economic Scale Indexation Global, Global ex-north America, Europe, US, Japan, Emerging Markets, Asia Pacific ex-japan Lower Volatility Global, Global ex-us, Euroland, US, Emerging Markets, Asia Pacific ex- Japan Active fundamental Portfolio construction: core, income, small cap, real estate, thematic, lower carbon Geographic: global, regional, country Global Capabilities US Dollar Sterling Euro Canadian Dollar Equity Liquidity Regional Capabilities US Dollar: US Government; US Treasury Euro: Prime; Government; Treasury Country capabilities Argentina, Canada, China, Hong Kong, India, Taiwan, Turkey Multi-Asset Global Capabilities Traditional Risk profiled Flexible Income Specialist Techniques (Style Factors) Tactical Risk Scaling Framework Portfolio Insurance Framework Regional Capabilities Asia, Europe, Eurozone Country Capabilities Canada, Eurozone, US, UK, China Hedge Funds Commingled hedge funds Range of multi-strategy and thematic fund of hedge funds Discretionary service Single line Advisory service Private Equity Funds Secondary Deals Co-Investments Tailored mandates Real Estate Funds Club Deals Retained Transactions Tailored mandates Infrastructure Debt Separate managed accounts Private Debt Alternatives 1. Not all sub-funds of the HSBC Global Investment Funds SICAV are registered in all countries. Not all strategies mentioned herein are suitable for all investors or available in all jurisdictions. HSBC Global Asset Management can register in more countries that it does currently and strategies/funds are constantly being opened/closed. Source: HSBC Global Asset Management as at December For informational purposes only and should not be construed as a recommendation for any investment product or strategy. 8

9 HSBC Global Asset Management We have a long history of dealing with a diverse client base from retail and private banking clients to intermediaries, commercial and corporate clients and some of the biggest institutional investors in the world. Our presence in 26 countries means we are where our clients are and where investment opportunities are, being well positioned to bridge the gap between developed and developing markets. Local experts manage funds which are distributed across 35 countries, seizing the opportunities that can only be found locally, while consistently following our global processes and governance. This network gives us the capacity to provide multi-national companies with a consistent global coverage of products and services. We manage risk as much as performance, and governance underpins everything we do. All our teams have clear investment philosophy and follow a globally-consistent, disciplined investment process across our capabilities, with ESG integration. We believe these are essential to deliver longterm value for our clients and are especially valued by clients with cross-border requirements. Strong global investment platform and operations supports local investment teams Switzerland Luxembourg Canada USA Mexico Bermuda UK Jersey France Spain Sweden Germany Austria Italy Malta Turkey Saudi Arabia UAE India China Taiwan Hong Kong Japan Singapore HSBC Global Asset Management offices Argentina Australia By asset class (USDbn) USD468.3bn under management By region (USDbn) Fixed Income (189.4) Equity (83.0) Multi-Asset (86.4) Liquidity (60.1) Alternatives (23.9)* Other (25.6)** Americas (83.6) EMEA (245.1) Asia Pacific (139.7) * Alternatives assets include USD5.0bn from committed capital ( dry powder ). **Other is the assets of Hang Seng Bank, in which HSBC has a majority holding, and of HSBC Jintrust Fund Management, a joint venture between HSBC Global Asset Management and Shanxi Trust Corporation Limited. Source: HSBC Global Asset Management as at 30 June Any differences are due to rounding. 9

10 For more information, please visit The value of investments and the income from them can go down as well as up and investors may not get back the amount originally invested. Past performance contained in this document is not a reliable indicator of future performance whilst any forecasts, projections and simulations contained herein should not be relied upon as an indication of future results. Where overseas investments are held the rate of currency exchange may cause the value of such investments to go down as well as up. Investments in emerging markets are by their nature higher risk and potentially more volatile than those inherent in some established markets. Economies in Emerging Markets generally are heavily dependent upon international trade and, accordingly, have been and may continue to be affected adversely by trade barriers, exchange controls, managed adjustments in relative currency values and other protectionist measures imposed or negotiated by the countries with which they trade. These economies also have been and may continue to be affected adversely by economic conditions in the countries in which they trade. Mutual fund investments are subject to market risks, read all scheme related documents carefully. For Professional Clients and intermediaries within countries set out below; and for Institutional Investors and Financial Advisors in the US. This document should not be distributed to or relied upon by Retail clients/investors. The contents of this document may not be reproduced or further distributed to any person or entity, whether in whole or in part, for any purpose. All non-authorised reproduction or use of this document will be the responsibility of the user and may lead to legal proceedings. The material contained in this document is for general information purposes only and does not constitute advice or a recommendation to buy or sell investments. Some of the statements contained in this document may be considered forward looking statements which provide current expectations or forecasts of future events. Such forward looking statements are not guarantees of future performance or events and involve risks and uncertainties. Actual results may differ materially from those described in such forward-looking statements as a result of various factors. We do not undertake any obligation to update the forward-looking statements contained herein, or to update the reasons why actual results could differ from those projected in the forward-looking statements. This document has no contractual value and is not by any means intended as a solicitation, nor a recommendation for the purchase or sale of any financial instrument in any jurisdiction in which such an offer is not lawful. The views and opinions expressed herein are those of HSBC Global Asset Management at the time of preparation, and are subject to change at any time. These views may not necessarily indicate current portfolios' composition. Individual portfolios managed by HSBC Global Asset Management primarily reflect individual clients' objectives, risk preferences, time horizon, and market liquidity. The global liquidity funds are sub-funds of HSBC Global Liquidity Funds plc, an open-ended Investment company with variable capital and segregated liability between sub-funds, which is incorporated under the laws of Ireland and authorised by the Central Bank of Ireland. The company is constituted as an umbrella fund, with segregated liability between sub-funds. Shares of the sub-funds may not be offered or sold in the United States of America, including its territories and possessions ( United States or US ), or, directly or indirectly, to or for the benefit of a US Person, except in a transaction exempt from the registration requirement of the Securities Act of 1933, as amended. NOT FDIC INSURED/NO BANK GUARANTEE/MAY LOSE VALUE. All subscriptions in any fund presented in this document are accepted only on the basis of the current HSBC Global Liquidity Funds prospectus, Key Investor Information Document (KIID) and most recent annual and semi-annual reports, which can be obtained upon request free of charge from the registered or head office of the below mentioned HSBC Global Asset Management entities or local distributors. All the information within this document does not replace the official legal documents for the fund (i.e. prospectus, Key Investor Information Document (KIID), annual and semiannual reports). This fund may not be suitable for every investor. Before subscription, investors and potential investors should read and note the general risk factors in the prospectus and the specific risk factors in the Key Investor Information Document (KIID). If you have any doubts about the suitability of this investment, you should contact a financial adviser. HSBC funds are sub-funds of the HSBC Global Investment Funds, a Luxembourg domiciled SICAV. All applications are made on the basis of the current HSBC Global Investment Funds Prospectus, Key Investor Information Document (KIID), Supplementary Information Document (SID) and most recent annual and semi-annual reports free of charge from HSBC Global Asset Management (UK) Limited, 8 Canada Square, Canary Wharf, London E14 5HQ, UK. Investors and potential investors should read and note the risk warnings in the prospectus and relevant KIID and additionally, in the case of retail clients, the information contained in the supporting SID. We accept no responsibility for the accuracy and/or completeness of any third party information obtained from sources we believe to be reliable but which have not been independently verified. HSBC Global Asset Management is a group of companies in many countries and territories throughout the world that are engaged in investment advisory and fund management activities, which are ultimately owned by HSBC Holdings Plc. HSBC Global Asset Management is the brand name for the asset management business of HSBC Group. The above communication is distributed by the following entities: in the UK by HSBC Global Asset Management (UK) Limited, who are authorised and regulated by the Financial Conduct Authority; in France and Italy by HSBC Global Asset Management (France), a Portfolio Management Company authorised by the French regulatory authority AMF (no. GP99026); in Germany by HSBC Global Asset Management (Deutschland) GmbH which is regulated by BaFin; in Switzerland by HSBC Global Asset Management (Switzerland) Ltd whose activities are regulated in Switzerland and which activities are, where applicable, duly authorised by the Swiss Financial Market Supervisory Authority. Intended exclusively towards qualified investors in the meaning of Art. 10 para 3, 3bis and 3ter of the Federal Collective Investment Schemes Act (CISA); in the US by HSBC Global Asset Management (USA) Inc. is an investment adviser registered with the US Securities and Exchange Commission; INVESTMENT PRODUCTS: Are not a deposit or other obligation of the bank or any of its affiliates; Not FDIC insured or insured by any federal government agency of the United States; Not guaranteed by the bank or any of its affiliates; and Are subject to investment risk, including possible loss of principal invested. and in Singapore by HSBC Global Asset Management (Singapore) Limited, which is regulated by the Monetary Authority of Singapore. HSBC Global Asset Management (Singapore) Limited is also an Exempt Financial Adviser and has been granted specific exemption under Regulation 36 of the Financial Advisers Regulation from complying with Sections 25 to 29, 32, 34 and 36 of the Financial Advisers Act, Chapter 110 of Singapore. Important Information for Swiss Investors: this document has no contractual value and is not by any means intended as a solicitation, nor a recommendation for the purchase or sale of any financial instrument. This document may be distributed in Switzerland only to qualified investors according to Art. 10 para 3, 3bis and 3ter of the Federal Collective Investment Schemes Act (CISA). The presented HSBC GIF sub-funds are authorised for distribution in Switzerland in the meaning of Art. 120 of the Federal Collective Investment Schemes Act. (Potential) investors are kindly asked to consult the latest issued Key Investor Information Document (KIID), prospectus, articles of incorporation and the (semi-)annual report of the fund which may be obtained free of charge at the head office of the representative: HSBC Global Asset Management (Switzerland) Ltd., Gartenstrasse 26, P.O. Box, CH-8002 Zurich. Paying agent: HSBC Private Bank (Suisse) S.A., Quai des Bergues 9-17, P. O. Box 2888, CH-1211 Geneva 1. Investors and potential investors should read and note the risk warnings in the prospectus and relevant KIID. Before subscription, investors should refer to the prospectus for general risk factors and to the KIID for specific risk factors associated with this fund. Issue and redemption expenses are not taken into consideration in the calculation of performance data. The HSBC GIF sub-funds presented in this document are sub-funds of HSBC Global Investment Funds, an investment company constituted as a société à capital variable domiciled in Luxemburg. The shares in HSBC Global Investment Funds have not been and will not be registered under the US Securities Act of 1933 and will not be sold or offered in the United States of America, its territories or possessions and all areas subject to its jurisdiction, or to United States Persons. The HSBC Liquidity Funds are not authorised for distribution in Switzerland according to Art. 120 of the Federal Collective Investment Schemes Act in Switzerland. This document may be distributed in Switzerland only to qualified investors according to Art. 10 para 3, 3bis and 3ter of the Federal Collective Investment Schemes Act (CISA). Representative in Switzerland: HSBC Global Asset Management (Switzerland) Ltd., Gartenstrasse 26, P.O. Box, CH-8002 Zurich. Paying Agent in Switzerland: HSBC Private Bank (Suisse) SA, Quai des Bergues 9-17, P.O. Box 2888, CH-1211 Geneva 1. In respect of the units distributed in Switzerland, the competent courts shall have exclusive venue at the registered office of the Representative in Switzerland. The official documents as per Art. 13a CISO as well as the (Semi-)Annual Report of the Fund may be obtained free of charge at the office of the Representative in Switzerland. Copyright HSBC Global Asset Management Limited All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, on any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of HSBC Global Asset Management Limited. ED-0809 until 31 March Non-contractual document