HSBC Asset Management ramps up expansion in Asia
In line with the Group’s ambition to be the leading wealth manager in Asia, HSBC Asset Management (HSBC AM) will accelerate investments in Asia to capture the region’s significant wealth opportunity shaped by fast-growing wealth pools, increasingly ageing populations and burgeoning demand for investment diversification.
HSBC AM aims to differentiate its business in Asia by delivering best in class products to support the investment needs of the full spectrum of wealth clients across Wealth and Personal Banking which includes high net worth (HNW) and ultra-high net worth (UHNW) clients, as well as its significant institutional base.
In particular, HSBC AM will focus on high conviction products in areas like alternatives, thematic Fixed Income, ESG and Active equities which will be distributed through HSBC’s in-house institutional partners while expanding external distribution channels. The company will continue to invest in its core markets of Hong Kong, Singapore and mainland China while expanding product and distribution capabilities in emerging Asia, particularly in India and South East Asia.
In 2020, HSBC AM grew the AUM in Asia to USD 184 billion, up 10% year-on-year, representing around a third of global AUM. The increase was driven by strong net new money in Asia at US$9 billion and positive fund performance. HSBC AM manages USD 13 billion in discretionary assets for private banking clients in Hong Kong, four times as much as the size in 2015.
Pedro Bastos, Chief Executive Officer, Asia-Pacific, HSBC Asset Management, said “As an international wealth bank with leading in-house asset management strengths, HSBC has a unique advantage in offering distinct investment solutions across our client segments and to reach new customers within our extensive Asia footprint and global universal bank. We will use our global investment expertise to connect our Asian clients to the world and harness our deep knowledge of Asian markets to help international investors capture growth in this region’s fastest-growing economies.”
Last year HSBC AM launched more than 20 funds in Asia to support the wealth management needs of affluent clients and at the same time continued to scale up alternative investments in infrastructure debt, and private equity to meet growing demand from institutional wealth asset owners. In addition, HSBC AM extended its low-carbon funds to Taiwan and mainland China, from its existing offerings in Hong Kong and Singapore. HSBC AM also helps international investors access its leading Asian investment expertise, particularly Asian Fixed Income and China capabilities. Globally, as part of the business strategy to unlock new climate solutions, HSBC Pollination Climate Asset Management was established in August 2020, with the vision to create the world’s largest dedicated natural capital investment manager.
In mainland China, where HSBC is the largest foreign bank, HSBC AM will capitalise on HSBC Jintrust(3) for growth and target to become a top 10 internationally-owned asset manager in the country by 2025.
Pedro added, “Rapid wealth creation in mainland China and our leading presence in Greater China, will enable us to serve both the onshore and international needs of clients in mainland China and investors who want to participate in the opening of the country’s financial and capital markets to the world.”
Recommended news