HSBC Asset Management plans to 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.
The company says it will focus on high conviction products in areas like alternatives, thematic fixed income, ESG and active equities which will be distributed through the bank’s in-house institutional partners while expanding external distribution channels. It 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 Southeast Asia.
In 2020, HSBC AM grew its assets under management in Asia to US$184 billion, up 10% year-on-year, representing around a third of global AUM. The increase was driven by strong net new money in the region at US$9 billion and positive fund performance. The firm manages US$13 billion in discretionary assets for private banking clients in Hong Kong, four times the size in 2015.
Last year it launched more than 20 funds in Asia to support the wealth management needs of affluent clients while continuing 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.
“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,” says Pedro Bastos, HSBC AM’s chief executive officer for Asia-Pacific.