HSBC is launching a new service to support high net worth clients in seizing opportunities previously only available in institutional and private banking. The HSBC Jade Private Market Investments will enable the bank’s Jade clients to strengthen their portfolios with a more diverse range of investments, including private equity and hedge funds, primary bonds, equity block trades, and private placement of structured notes.
“The new HSBC Jade service marks our commitment to offer differentiated wealth solutions to our customers. HSBC’s wealth business is an important pillar of our growth strategy in Asia, where we are planning to invest US$3.5 billion and hire 5,000 wealth roles in the next five years,” says Maggie Ng, head of wealth and personal banking, Hong Kong.
Under the category of private equities and hedge funds, HSBC will connect Jade clients with potential returns from private real estate investments in global locations, as well as other popular hedge funds in the private banking space. The bank says there will be no capital lock-up or capital calls, along with a discounted initial charge of 0.95% on transaction value for HSBC Jade clients.
With relatively lower volatility and a more predictable income stream, fixed income is an essential component in clients’ wealth portfolios, according to HSBC. Jade clients can gain access to the primary market of newly issued bonds and private placements not available to the public with an entry threshold of as low as HK$1 million (US$128,870).
The bank can also source opportunities in the growing green bond space, with Jade clients enjoying a discount up to 20% on bond purchases and a cash rebate of 0.1% if they are buying bonds with HSBC for the first time.
In the second half of 2021, Jade clients will also be able to purchase blocks of equities offered by a specific listed company or its major shareholders at a discount. The bank has also started to offer structured notes, with a minimum ticket size of only HKD500,000.
“The city’s high net worth population (those with liquid assets of US$1 million or above) is expected to grow by an average of 12% annually, driving demand for more sophisticated investment solutions. To navigate an increasingly challenging investment landscape, customers will need a more diverse range of financial products to unlock new opportunities and maximize risk-adjusted returns in their portfolios,” says Sami Abouzahr, head of customer wealth, wealth and personal banking, Hong Kong.