HSBC Global Private Banking (GPB) raised $3.2bn for alternative investments from its global private clients last year, compared with $2.3bn raised in 2020, according to the bank.
Most of the inflows came in Asia, where HSBC pulled in $1.9bn, while $1.3bn came from clients in Europe, the Middle East and Africa.
The increase was largely a result of continued interest in hedge funds, coupled with a strong performance across private markets, where, in addition to clients in Asia more than doubling their 2020 aggregate commitments, HSBC improved the accessibility of its products across its European markets.
Clients looking to safeguard their investment portfolios from market volatility and inflationary concerns are using alternatives to diversify their portfolios, according to the UK-based bank.
“This year we aim to broaden our alternative investments offering to also meet the long-term investment demands of our personal banking and premier customers, while improving [products and services] for top tier ultra-wealthy clients through the introduction of new bespoke and dedicated services”, said Lavanya Chari, global head of investments & wealth solutions, HSBC, in a statement.
Partnering with HSBC Alternatives, HSBC Asset Management’s (AM) alternatives team, the private bank product offerings include hedge funds, private markets and property.
In June 2021, HSBC AM consolidated its alternatives businesses comprising 150 staff and with $54bn of assets under management and advice. HSBC Alternatives is made up of HSBC Alternatives Investments, which includes the multi-manager hedge fund and private market teams, and the bank’s private debt, venture capital and direct real estate teams, with capabilities in Hong Kong, the UK, France, Germany, Switzerland, and the US.