Prism Advisory Services

HSBC Group recognises that environmental, social and corporate governance (ESG) issues, which includes climate change, can have a significant impact on individuals, businesses and communities across the world. HSBC Group is committed to accelerating the transition to a low-carbon global economy via financial services. In 2020, the next phase of the Group’s climate ambition was published. This includes the commitment to become a net-zero bank; supporting customers to thrive through the transition; and to unlock the next-generation of climate solutions. Central to this ambition is to reduce financed emissions to net zero by 2050 or sooner, in line with the Paris Climate Agreement. In doing so, HSBC Group aims to facilitate between USD750 billion and USD1 trillion of finance and investment by 2030 to support our clients. More information on HSBC Group’s approach to ESG issues can be found here.

As a leading international bank, HSBC Private Banking has a critical role to play. We are proud to support our clients’ aspirations to make a positive change in the world through investments, wealth planning or philanthropy. 

In compiling and maintaining the suite of Discretionary Portfolio Services, Funds, Exchange Traded Funds (‘ETFs’),  insurance-based investment products and Alternative Investment Funds (‘AIFs’) we advise on, we take into account, among other factors, information manufacturers of these products (e.g. asset managers) are required to disclose about how they integrate ESG risks into their investment decision making processes, including the likely impacts of ESG  risks on the returns of financial products.  This includes, where applicable, if they consider the impact of their investment decisions on sustainability factors (i.e., environmental, social and employee matters, respect for human rights, anti-bribery, and anti-corruption matters). As part of this process, our specialist due diligence teams engage with product manufacturers to understand how they integrate these factors into their investment decision making through research, analysis, due diligence, and portfolio construction. 

Should you require further details on how ESG risks are incorporated in the products on which we advise, please contact us or your HSBC Relationship Manager.

Information on how our remuneration policy is consistent with the integration of sustainability risks can be found on page 252 of the HSBC Holdings Plc 2020 Annual Report and Accounts.

• It is important to note that the capital value of, and income from, any investment may go down as well as up and you may not get back the full amount invested
• The investment is subject to normal market fluctuations and there can be no assurance that an investment will return its value or that appreciation will occur
• Liquidity constraints where subscriptions and redemptions are not available daily, or where lockups apply, mean that investors are subject to market risk during interim pricing periods and may not be able to access funds on short notice
• There is a greater risk associated with emerging markets. Liquidity may be less reliable and price volatility may be higher than that experienced in more developed economies. This may result in the fund suffering sudden and large falls in value
• Funds with a single sector focus will typically be more volatile than funds which invest broadly across markets
• Funds with a single country focus will typically be more volatile than funds which invest broadly across markets and geographies
• Region-specific funds have a limited investment scope and are susceptible to a decline in the region in which they invest. Therefore, these funds may be more risky than those which invest more broadly across markets and geographies
• Countries where political leadership is either unstable or where it exerts a very strong influence on markets and business practices may be subject to greater volatility. Political risk may include potential for currency controls which would disrupt efficient financial markets
• Limited transparency is typically a feature of both hedge funds and funds of funds. Funds of funds rely on underlying managers’ allocations and holdings may be less transparent than in single manager long-only funds. Furthermore, hedge funds in particular may have highly tactical investments along with less frequent and less stringent reporting requirements which does not provide investors with a picture of holdings on any given day
• Currency may have either a direct or indirect effect on individuals’ investments. Where the reference currency is different from the reporting currency, foreign exchange movements will directly impact the value of the holdings. Currency will indirectly impact the value of the underlying investments as foreign exchange movements strongly influence the market economy and the competitiveness of both domestic and international companies. Funds which try to hedge to a reference currency can mitigate the direct impact of currency movements but cannot completely isolate the indirect effects of foreign exchange movements
• Where investment decisions are made by an individual or a very small team, the potential loss of any one individual represents a significant risk to the ongoing viability of the fund
• Passive Index funds are designed to track the reference index before fees and expenses. However, these funds may deviate from the index depending on several factors including: how fully the fund replicates the index, if the makeup of the index changes and if dividends are not fully captured
• Smaller Company Risk – Small companies may be less liquid than larger companies and therefore price movements in securities of smaller companies may be more volatile and involve greater risk

The information on this site refers to services or products which are not available in certain locations, or which, in any relevant location, may have components, methods, structures and terms different from the ones described, as well as restrictions on client eligibility. Please contact a Relationship Manager for details of services and products that may be available to you.

The use of the label ‘HSBC Private Banking’, ‘HSBC Private Bank’, ‘we’, or ‘us’ refers to HSBC’s worldwide private banking business, and is not indicative of any legal entity or relationship.

This information is entirely qualified by reference to the terms and conditions of the specific service, if any, provided by the relevant HSBC company.

Nothing here is to be deemed an offer, solicitation, endorsement, or recommendation to buy or sell any general or specific product, service or security and should not be considered to constitute investment advice.

Please note that HSBC Private Banking does not provide Legal and Tax Advice.

Before proceeding, please refer to the full Disclaimer and the Terms and Conditions.