HSBC Private Banking Focus
Fan Cheuk Wan, managing director and chief market strategist in Asia at HSBC Private Banking, shares how HSBC Private Banking helps its clients build their portfolios with a globally diversified asset allocation strategy
In uncertain economic times, global diversification in multi-asset portfolios is a key way to help investors optimise investment returns and reduce portfolio risk.
Diversifying their assets both by geography and asset class, with a broad and balanced allocation across a range of traditional asset classes and alternative investments throughout the investment cycle, is the most prudent approach to take in an increasingly volatile market, according to Fan Cheuk Wan, managing director and chief market strategist in Asia at HSBC Private Banking.
“Investors are seeking a more systematic and disciplined approach,” says Fan. “I think this is particularly important now. We are entering the very late stage of an extended economic cycle. We are also approaching the 10th anniversary of the post-Lehman expansion cycle in July 2019—this is the longest recovery in modern history and there are growing worries about global recession risks.
Global diversification for sustainable returns
“At this late stage, we expect higher return dispersion and increased market volatility. It requires a robust and stringent investment process to reduce portfolio risk and improve investment outcome.
We strongly believe that global diversification and multi-asset portfolios are important for sustainable and optimised returns.