HSBC launches World Selection

HSBC Bank has launched an innovative range of investment portfolios for its customers that provide diversified global exposure to a mix of asset classes.

The HSBC World Selection Portfolios are globally-diversified, multi-asset growth portfolios that can hold both traditional investments such as bonds and equities, as well as modern assets including commodities and private equity. Many of these modern asset classes would not readily be accessible to the private investor.

There are three funds in the World Selection range; Cautious, Balanced and Dynamic, ensuring there is a product that may appeal to each customer's appetite for risk.

Each portfolio in the World Selection range offers the expertise of a mix of what HSBC considers to be some of the best fund managers, from around the world. These managers are handpicked by the extensive multimanager team at HSBC Global Asset Management and optimally blended to deliver steady long-term absolute returns, with low levels of volatility. The portfolios will also hold passive instruments such as Exchange Traded Funds (ETFs) when it is considered these present a better risk/reward trade off than actively managed funds.

David Wells, Head of Investments, Pensions & Savings at HSBC, said: "The steep declines in stock markets over 2008 have been a painful reminder of the risks inherent with putting all of your investment eggs in the one basket. When researching this product launch, our customers have told us "I don't like the rollercoaster effect" and "I'm more interested in preserving what I've got than risking it all". That's why it is important to diversify, geographically and to hold different asset classes so that you can aim to achieve good long-term results without taking a rollercoaster ride along the way. Research by HSBC demonstrates that various asset classes will move in and out of favour at different stages in the economic cycle. By being truly diversified, this should, over the longer term, lead to smoother, more stable returns from your investment portfolio (compared to holding a single asset class)."

The new World Selection range uses the same building blocks and principles as HSBC's OpenFunds range which is primarily sold by intermediaries. The HSBC Open Global Return Fund was launched in November 2006. Since launch, this fund is one of the best performers in its sector.The World Selection range follows a similar approach to that of the HSBC Open Global Return fund by choosing the best managers from around the world to manage a blend of traditional and modern asset classes.

Minimum investment for the HSBC World Selection Portfolios is £50 per month or lump sum of £1,000 and the portfolios are available from HSBC Financial Advisers at any HSBC branch or buying direct online at hsbc.co.uk. There is a 4% initial charge (1% online) and 1.25% annual management charge.