New HSBC Prism Advisory harnesses data-driven analytics to help professional investors navigate market complexity
- HSBC Prism Advisory enables professional investors to manage risk and test their portfolios against different market scenarios
- The bank uses data-driven insights and the guidance of its experts to help eligible clients make informed decisions
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HSBC recently launched its HSBC Prism Advisory service for private banking and eligible retail wealth clients¹ in Hong Kong. HSBC Prism Advisory enables clients to manage risk and test their portfolios against different market scenarios by using data-driven insights and expert guidance to help clients make informed decisions.
Global market performance has been hit hard by a range of factors including continued rate hikes in the United States and significant volatility in the A-share and H-share markets. Despite downward pressure on the global economy, HSBC expects that this year opportunities may still be found and a silver lining may be emerging in the outlook for interest rates. It is, therefore, important to stay invested and build a diversified portfolio of high-quality assets, while waiting to see how the markets may perform in the near future.
Surging demand for diversified and personalised services
An HSBC study on middle class in 2022 found that professional investors¹, on average, allocate 61 per cent of their assets to investments, around 10 per cent higher than non-professional investors. Their portfolios are highly diversified, with a greater proportion in equity (28 per cent) and funds (16 per cent) respectively.
“Professional investors demand more diversified and personalised services for managing their portfolios. They want advice supported by data and analysis, and hope to have greater control over their investment decisions to achieve their wealth management goals,” says Brian Hui, head of customer propositions and marketing, wealth and personal banking at HSBC in Hong Kong.
Deep and data-driven insights
HSBC’s Prism Advisory, a hybrid service that combines expert guidance with data-driven analytics, helps eligible clients in Hong Kong make informed decisions under different potential market scenarios.
“At HSBC, we advocate providing a portfolio-based advisory approach by leveraging our substantial investments in portfolio analytics and technology. With the introduction of Prism, the advisory client journey now delivers optimal goal and risk alignment with ongoing monitoring to assist clients in making the right decisions,” says Wei Mei Tan, global and asia head of advisory, global private banking and wealth at HSBC.
Powered by Aladdin Wealth technology, an industry-leading risk platform from BlackRock, HSBC Prism Advisory harnesses deep, data-driven analytics along with HSBC investment counsellors or relationship managers’ advice to deliver a more disciplined approach to investing for clients.
Visualising the future
Risk management is core to investing. Although clients may build diversified portfolios to mitigate risks, market developments also directly impact their risk appetite. Using the wealth projection function within Prism, clients can simulate the potential growth of their portfolio over the next 30 years, helping them better plan for their long-term goals.
“We provide detailed portfolio analysis to our clients in an innovative and digitally enabled way. Using an ever-evolving catalogue of stress tests, clients can use HSBC Prism Advisory to assess the strengths and weaknesses of their portfolio by testing how it might react to certain market situations and scenarios, and helping them capture opportunities amid market volatility,” says Sami Abouzahr, head of investments and wealth solutions, wealth and personal banking at HSBC Hong Kong.
Comprehensive portfolio monitoring and timely market alerts
HSBC Prism Advisory monitors portfolios around-the-clock, providing timely notifications and personalised advice to clients if there is any deviation from their plans. For instance, during a sharp market movement, Prism can alert the client to portfolio risks and opportunities, identifying optimal solutions for them according to their investment needs.
“HSBC Prism Advisory provides a personalised portfolio advisory service in conjunction with our deep understanding of client demand, industry-leading technology and tailored advisory from experts. As the first-in-market retail bank to provide such an institutional portfolio advisory service, our services also support affluent professional investor clients. We will continue to address their diverse wealth management needs through continuous innovation and our signature approach to client services,” says Hui.
Disclaimer from HSBC:
*Investment involves risks.
¹ For Professional Investors in Hong Kong. HSBC Prism Advisory is available to eligible retail banking investors who qualify as Professional Investor(s) as defined under the Securities and Futures Ordinance of Hong Kong.