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HSBC unveils new product for rich customers

The wealth management investment service uses Blackrock’s Aladdin technology.
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“Wealth Portfolio Plus” (WPP) is a portfolio -based advisory service to help HSBC Jade clients, with professional investor status, in Hong Kong construct a diversified portfolio and navigate through market volatility, according to the bank.

To qualify as a Jade investor, customers

Previously, HSBC Jade customers, who need to have a total balance of at least HK$7.8m ($1m) with HSBC, could only select individual products that aligned with their risk tolerance.

The WPP service allows HSBC Jade directors to review the investment portfolios of individual customers, giving them access to a wider range of investment products across the risk/return spectrum, while ensuring their overall portfolios stay within their risk tolerance.

“Since WPP provides portfolio-level rather than transactional-level analysis, new investment options can then become available to customers that fit their needs,” said Sami Abouzahr, head of customer wealth, wealth and personal banking, Hong Kong, HSBC, in a statement.

WPP uses Blackrock’s Aladdin wealth technology to analyse all asset classes, measure risk at a portfolio level and road-test performance under different market scenarios. It covers a range of products including unit trusts, bonds, equities, structured products, warrants and cash.

The roll out of WPP follows the launch of Wealth Portfolio Intelligence Service (WPIS) to HSBC Jade and Premier clients last year. Since its inception, WPIS has generated over 130,000 risk assessment reports and contributed nearly HK$30 billion in net sales growth from more than 70,000 cases of investment portfolio rebalancing, according to HSBC.

The new service reflects HSBC’s strategic focus on the high net worth segment as part of its commitment to its Asian wealth business, which saw a big increase in the number of rich clients in Hong Kong and a double-digit growth in their assets under management from a year ago.

HSBC’s wealth business in Asia attracted $9.3bn of inflows in the first half of this year, according to the bank’s interim results.

Its Asian wealth balances, which include Premier and Jade deposits and global private banking client assets, reached a new high of $810bn, accounting for nearly half (49%) of the bank’s worldwide total, said the UK-headquartered bank earlier this week.

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