Asset allocation decisions are the key determinant of portfolio returns, accounting for 70-80% of long-term performance.

• Our investment process is driven by the Asset Allocation Committee, which formulates an investment policy based on broad macroeconomic, microeconomic, political and financial market trends. The Asset Allocation Committee is chaired by the Chief Investment Officer.
• The Committee provides a global economic scenario based on secular trends that may be interrupted or amplified by medium-term economic and/or monetary cycles.
• A group of Investment Advisors is responsible for selecting and recommending individual securities such as stocks, bonds, mutual funds and alternative investments. They rely on financial research provided by experts from within the HSBC group or from other financial institutions we follow an "open architecture/best of breed" - policy.
• The group of Investment Advisors supports our investment department both on the advisory side and on the marketing side.
• New recommendations are approved by our Equity Committee and Bond Committee. These Committees are chaired by a member of the Asset Allocation Committee.
• Our Investment Committees strive to recognise changes in financial market trends at an early stage, to identify emerging financial themes, to avoid over-exposure to risky market segments, to identify inefficiently priced assets and - above all - to find investments that fit the overall investment strategy defined by the Asset Allocation Committee.