Our Investment Philosophy

Our Investment Philosophy

HSBC Global Asset Management’s objective is to deliver long-term competitive returns to our clients by actively managing disciplined investment strategies.  We believe value can be added through active, fundamental management with a commitment to in-depth, bottom-up research and analysis. 

Our on-the-ground network of close to 500 investment professionals provides valuable insight into regional trends and opportunities. We look to deliver quality and value through a robust risk management framework that leverages our global capabilities and local knowledge to drive better investment decisions across a wide range of investment strategies.

Equity Fixed Income Multi-Asset  Liquidity
  • In a world of “market efficiency”, cap-weighted index products allow clients to capture "equity beta" efficiently and cost effectively
  • However, market inefficiencies result in the mispricing of risks,and as a result equity markets exhibit excess volatility
  • We offer high-conviction active solutions, which aim to exploit the most attractive mispricing opportunities to improve returns
  • We offer passive solutions which use alternative weighting schemes to harvest this excess volatility to improve risk adjusted returns
  • Fixed income market inefficiencies result in the mispricing of risks
  • We offer an active fundamental approach in emerging and credit markets where inconsistencies between risk premiums and fundamentals are exploited thanks to our bottom-up credit research and our top-down macro analysis
  • This approach is combined with quantitative technique
    valuations on generally more liquid and more efficient segments (developed countries’ government bonds and currencies)
  • Asset classes are excessively volatile compared to fundamentals
  • Active asset allocation based on valuation seeks to benefit
    from market over-reaction
  • We offer solutions aimed at the optimal risk/return ratio within stated guidelines
  • We offer solutions in which the exposure to underlying assetclasses is built with fundamental active and/or efficient beta strategies
  • Our investment process seeks to manage credit, liquidity and interest rate risks
  • As there is little differentiation of risk, and hence pricing, across  top tier issuers in the money markets, we have developed the necessary resources to exploit these relative value opportunities
  • We offer solutions that target preservation of capital as well as provide liquidity

Representative overview of the investment process, which may differ by product, client mandate or market conditions.