HSBC Global Private Banking (GPB) has launched a digital platform for discretionary portfolio management, saying that it is the first in Asia to offer the service on a mobile app.

The new feature enables private banking clients to subscribe and reallocate their discretionary portfolio via the HSBC GPB’s mobile app, giving them 24/7 access to portfolio holdings and manager updates.

The discretionary portfolio management (DPM) programme was launched in May 2021. Both the DPM programme and the new digital platform are available to HSBC GPB clients with assets booked in Hong Kong and Singapore. The minimum investment is US$200,000.

Discretionary portfolio building blocks offer equity, fixed income and multi-asset portfolios, managed for HSBC GPB by HSBC Asset Management and third-party managers.

The programme is suitable for clients looking to build globally diversified discretionary portfolios that can be customized based on their needs, attitude to risk and investment objectives, the bank says. The new DPM strategy represents over 10% of HSBC GPB’s DPM assets under management in Asia.

“In an increasingly challenging environment, more and more clients in Asia are opting for discretionary mandates to diversify their portfolios, build multiple income streams and take up defensive positions in high-quality companies to withstand market volatility and interest rate hikes,” says Siew Meng Tan, regional head of HSBC GPB for Asia-Pacific.

“The new discretionary digital platform will enable us to serve the immense and fast-growing segment of underserved affluent-to-high-net-worth investors, giving them access to sophisticated and exclusive DPM portfolio building blocks, especially the next-generation clients who are more hands-on in portfolio construction.”

Last year, HSBC GPB unveiled its new online trading platform for private banking clients in Asia to connect clients with the latest market opportunities and offer trading access to 10 key financial markets. The platform’s product shelf has continued to expand, with fixed-coupon notes and equity-linked notes as well as funds added this year, alongside cash equities, exchange-traded funds and foreign exchange, which were already available on the platform.

Tan adds: “Having a simple yet powerful digital wealth management platform enabling investment at their fingertips has been a true game-changer appreciated by many of our clients, especially digitally savvy millennials, who desire flexible means for more proactive wealth management, anytime and anywhere. In Hong Kong, 90% of our clients said that our digital services exceeded or met their expectations, a year-on-year increase of 5%."

HSBC GPB has invested over US$200 million over a four-year period to build and innovate its core banking and digital platforms. Currently, two-thirds of HSBC GPB’s clients are digitally engaged, while more than 35% of execution-only trades in Asia are completed online.