- Article
- Commercial wealth
- Asset allocation
Commercial Wealth Series: Optimising capital allocation for sustainable growth
When it comes to your business, do any of these ring a bell?
- Your cash is sitting idle, with funds not living up to their full potential
- You oversee a portfolio that’s too concentrated and in need of diversification
- You need to balance responsiveness to opportunities and sensitivity to risks
- You desire a more structured approach to investment decisions across your holdings
If any of these resonate, it may be time to refine your capital allocation strategy and ensure your investment approach is fit for the future.
What does your business need?
With access to substantial funds and a mandate to grow shareholder value, an investment holding company faces the unique challenge of navigating rapidly changing market conditions while positioning to capture emerging opportunities.
Your business needs an effective commercial wealth strategy that allows you to:
- Optimise investment capital across asset classes to capture growth and income opportunities
- Manage risk through diversification, especially in times of market uncertainty
- Ensure liquidity to respond quickly to new investment opportunities
- Align investments with long-term financial goals, governance requirements and risk appetite
How can HSBC Commercial Wealth help?
We offer an expansive suite of bespoke investment strategies designed to help investment holding companies build diversified portfolios tailored to their risk profile, return targets and unique wealth management needs.
Illustrative caseAn investment holding company with significant stakes in local commercial property and a portfolio of listed equities sought to optimise capital allocation amid rising market volatility. Their heavy concentration in real estate limited exposure to sectors with higher growth potential, such as technology and sustainable energy. HSBC’s Commercial Wealth team worked to develop a tailored strategy, reallocating part of the funds into fixed income products, global equities and alternative investments. This approach balanced income generation with capital growth potential and improved overall portfolio resilience. With tailored liquidity solutions in place, the company maintained the agility to capitalise on timely investments while ensuring steady cash flow. This strategic reallocation strengthened their financial position and supported sustainable, long-term value creation. |
Ready for the next step?
It’s time to take a more strategic view of your company’s capital, balancing income, growth and risk in a way that supports long-term wealth creation. For 160 years, we have supported businesses at every stage of growth. We’re here to assist you towards smarter commercial wealth management, unlock new investment opportunities and secure a stronger, more resilient future for your business.
We invite you to speak with our Commercial Wealth specialist by clicking on the ‘Contact us’ button below or visit one of our HSBC Commercial Wealth Centres located in Tsim Sha Tsui and Causeway Bay in Hong Kong. To find out more, please visit https://www.business.hsbc.com.hk/en-gb/products-and-solutions/commercial-wealth.
The Bank does not provide investment advice. Investment involves risk.
