HSBC launches discretionary portfolio management service for retail investors

HSBC has introduced a new discretionary portfolio management service for retail investors in Hong Kong, with a minimum monthly investment of just HK$1,000 (US$128). The innovative service, called Portfolio+, aims to attract younger, tech-savvy customers by allowing HSBC retail banking clients to create an investment portfolio via the bank's mobile apps.

Winnie Ng, head of wealth and premier solutions at HSBC Hong Kong, explained that the service targets investors aged 35 or younger who may lack the time or experience to manage their own investments. Portfolio+ offers investors the option to allocate funds across various risk levels or themes, such as green concepts, with the bank investing and rebalancing the portfolio according to its house view.

The bank charges a fee of 0.5 to 0.8 percent per annum, based on the portfolio's assets under management, and will employ technology to analyze and document investment strategies. HSBC Hong Kong, which has 7 million customers, has been focusing on promoting its investment and wealth management business in the city. The discretionary investment service will follow a globally diversified approach, investing in stocks and bonds worldwide, with lower-risk portfolios weighted more towards fixed income and higher-risk portfolios featuring greater equity exposure, particularly in US markets.

The bank will utilize exchange-traded funds listed in London for asset management and may expand into Hong Kong ETFs in the future. Additionally, the portfolios will include selected alternative-asset-style exposures, such as listed property and infrastructure ETFs.