Asset allocation, the foundation for long-term investing
Asset allocation1 creates a consistent investment structure to help you stay focused on long-term goals through turbulent market cycles. In addition to helping maintain a portfolio that matches your appetite for risk, this strategy can help diversify your portfolio across asset classes and markets as well as support a consistent, disciplined approach to investing. We believe that employing proper asset allocation is the key to a long-term investment strategy, which is why we offer a variety of exclusive, customized asset allocation solutions.
An investment plan as unique as your needs
Financial professionals2 from HSBC Securities (USA) Inc.3 can help you to develop a custom asset allocation strategy by taking the time to understand your risk tolerance, time horizon, financial goals, liquidity needs and other relevant factors. Our first priority is to follow an investment strategy with which you are comfortable.
Start with scheduling a review:
Asset allocation solutions to potentially enhance your portfolio
Because we place a strong emphasis on proper asset allocation, we're pleased to make a wide variety of HSBC asset allocation solutions available to our clients. Please consider this information for educational purposes only. Please schedule a review with a financial professional to receive recommendations that may be suitable for you or in your best interest based on various personalized factors.
HSBC Spectrum4 provides flexibility for a wide variety of investment styles through an open architecture asset allocation program:
- Five asset allocation models. Models offer allocations to equity and fixed income mutual funds, money market funds and ETFs (exchange traded funds)
- Assistance from your financial professional to evaluate allocation models that align with your tolerance for risk
- Periodic evaluation of client accounts against their selected target model to determine if rebalancing is recommended
- A minimum initial investment of $25,000
Form ADV Part 2 and the Customer Relationship Summary ("Form CRS" or "ADV Part 3") act as disclosure documents for clients of the business and includes information such as advisory services offered, the firm's fee schedule, whether the firm acts as a broker-dealer and transacts securities, disciplinary information, and conflicts of interest. This information should be read carefully and if you have any questions please reach out to your financial professional.
Our Managed Portfolio Account4 offers a comprehensive, personalized, and highly-diversified solution for our clients with substantial assets:
- Guidance from a financial professional, who will work with you to customize an investment portfolio using asset allocation techniques and relying upon the expertise of leading portfolio managers
- Access to carefully researched mutual funds, stocks, bonds, and ETFs (exchange traded funds) to develop the most appropriate asset allocation for you
- Ownership of the securities purchased for your account, which can help you manage the tax implications of your investments
- A long-term investment approach, with ongoing support through various market environments and the evolution of your financial goals
- A minimum investment of $250,000
See important disclosures regarding our managed account products below:
|ARE NOT A DEPOSIT OR OTHER OBLIGATION OF THE BANK OR ANY OF ITS AFFILIATES
|ARE NOT FDIC INSURED
|ARE NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
|ARE NOT GUARANTEED BY THE BANK OR ANY OF ITS AFFILIATES
|MAY LOSE VALUE
All decisions regarding the tax implications of your investment(s) should be made in consultation with your independent tax advisor.
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HSBC Securities Environmental, Social and Governance (“ESG”) Customer Disclosure
In broad terms, “ESG and sustainable investing” products include investment approaches or instruments which consider environmental, social, governance and/or other sustainability factors to varying degrees. There is no guarantee that ESG and Sustainable investing products will produce returns similar to those which don’t consider these factors. ESG and Sustainable investing products may diverge from traditional market benchmarks. In addition, at this time in the United States there is no standard definition of, or measurement criteria for, ESG and Sustainable investing or the impact of ESG and Sustainable investing products. ESG and Sustainable investing and related impact measurement criteria are (a) highly subjective and (b) may vary significantly across and within sectors. HSBC Securities (USA) Inc., HSBC Insurance Agency (USA) Inc., and HSBC Bank USA N.A. (collectively “HSBC”) may rely on non-HSBC ESG measurement or scoring criteria originating, devised and/or reported by unaffiliated third parties or issuers. HSBC does not always conduct its own specific due diligence in relation to these unaffiliated parties’ own ESG measurement or scoring criteria. There is no guarantee: (a) that the nature of the ESG / sustainability impact or measurement criteria of an investment will be aligned with any particular investor’s sustainability goals; or (b) that the stated level or target level of ESG / sustainability impact will be achieved. ESG and Sustainable investing is an evolving area and new regulations are being developed which will affect how such investments can be recommended, categorized, or labelled. An investment which is considered to fulfil sustainable criteria today may not meet those criteria at some point in the future.
ESG/Sustainable investing may impact exposure to issuers, sectors, and industries, limiting the type and number of investment opportunities available, which may impact performance. An ESG portfolio may or may not financially outperform similar investments that do not consider ESG criteria. To the extent that a product reflects an ESG or Sustainable label in its security title or name, the product may not be considered by HSBC to be an ESG or Sustainable investment and will not be recommended as an ESG or sustainable investment.
HSBC does not provide any ESG recommendations or advice as part of our brokerage services offering. ESG recommendations/advice are limited to managed account offerings available in the Spectrum II ESG model. Additionally, we reserve the right to not recommend, or trade securities based on HSBC Group’s* internal policies, including its sustainability policies. Customers can purchase ESG/SI related products on our platform on a self-directed basis. Any ESG/SI macroeconomic statements or promotional materials generated by other HSBC Group entities may not reflect the views of HSBC.
Please consider the investment’s specific ESG and Sustainable investing impact and measurement criteria as described in the prospectus or other offering documents prior to investing.
United States persons (including U.S. citizens and residents) are subject to U.S. taxation on their worldwide income and may be subject to tax and other filing obligations with respect to their U.S. and non-U.S. accounts - including, for example, Form TD F 90-22.1 (Report of Foreign Bank and Financial Accounts ("FBAR")). U.S. persons should consult a tax adviser for more information.
1 Asset allocation is a method of diversification that positions assets among major investment categories. This tool may be used in an effort to manage risk and enhance returns. However, it does not guarantee a profit or protect against a loss. It also cannot eliminate the risk of fluctuating prices and uncertain returns.
2 Financial professional refers to Financial Consultants (FCs), Investment Counselors (ICs), and High Net Worth Relationship Managers (HNWRMs). All offer bank products through HSBC Bank (USA) N.A, investments, annuities, and variable life insurance products through HSBC Securities (USA) Inc. and traditional insurance products through HSBC Insurance Agency (USA) Inc.
3 Investment and certain insurance products, including annuities, are offered by HSBC Securities (USA) Inc. (HSI), member NYSE/FINRA/SIPC. In California, HSI conducts insurance business as HSBC Securities Insurance Services. License #: OE67746. HSI is an affiliate of HSBC Bank USA, N.A. Whole life, universal life, term life, and other types of insurance are provided by unaffiliated third parties and offered through HSBC Insurance Agency (USA) Inc., a wholly owned subsidiary of HSBC Bank USA, National Association. Products and services may vary by state and are not available in all states. California license #: OD36843.
HSBC Securities (USA) Inc. is a registered investment adviser that serves as the Investment Adviser for the HSBC Spectrum and the Managed Portfolio Account (MPA) programs. HSBC Global Asset Management (USA) Inc. provides administrative and other services to HSBC Securities (USA) Inc . HSBC Global Asset Management (USA) Inc. and certain other subadvisers receive a fee for their mutual fund investment services separate from the investment management fee charged for the Spectrum and MPA programs.
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