BOCHK partners with Schroders to launch Asset Allocation Solutions
Bank of China (Hong Kong) (BOCHK) and Schroder Investment Management (Hong Kong) have jointly introduced the ‘Asset Allocation Reference Portfolio’ which enables customers to make reference to portfolios composing of different asset classes in the global market based on their financial needs and risk appetites.
This will help customers diversify their risk more effectively while achieving their long-term investment goals, BOCHK said in a press release.
The ‘Asset Allocation Reference Portfolio’ provides customers with five model portfolios corresponding to different investor profiles for reference. The portfolios are designed with certain core asset classes as the foundation, coupled with short-term active strategic asset allocation, based on data analysis on the long-term returns and risks, as well as the performance across a range of asset classes including equities and bonds under various market conditions. Customers can make reference to the past performance of asset allocation portfolios and customise their own asset allocation that fits with their risk tolerance level, investment objectives and financial positions. Customers can now obtain information on global asset allocation by contacting their relationship managers. This service will also be available for all customers at internet banking and mobile banking in phases.
Arnold Chow, Deputy General Manager, Personal Digital Banking Product Department, BOCHK, said: “In the first seven months of 2020, global investment markets were volatile as some mature equity markets fluctuated by over 30%. As of the end of July, the total asset value of bond funds held by BOCHK personal customers recorded double-digit growth year-on-year. The outstanding balance of Notional Precious Metals Passbook recorded a year-on-year increase of over 60%. This reflects strong customer demand in reducing portfolio volatility through investment diversification amidst market fluctuation. BOCHK is pleased to partner with internationally renowned asset manager Schroders, to help our customers making informed decision based on timely global market information we provided when selecting a suitable asset allocation portfolio in this ever-changing market environment. Looking ahead, in view of the upcoming launch of Wealth Management Connect in Greater Bay Area and further business expansion in Southeast Asia, BOCHK will continue to optimise its wealth management services and enhance customer experience across online and offline channels in order to benefit more customers.”
Amy Cho, CEO, Hong Kong and Head of Intermediary, Asia Pacific, Schroders, said: “We are pleased to jointly launch the ‘Asset Allocation Reference Portfolio’ with BOCHK, our first partner in Hong Kong to offer this solution. Through this collaboration, we are bringing an investment tool that allows BOCHK customers with varying risk appetites to better understand the benefits that different asset classes can bring to their portfolios. The solution’s asset allocation reference portfolios are kept updated according to the Schroders Multi-asset Team’s analysis, which is based on our strategic asset allocation model using forward-looking return assumptions, and short-term asset allocation views. We have been offering similar solutions to clients in the UK for some time, involving about USD17.7 billion of assets.”
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