HSBC Private Bank Lures Record $3.2 Billion Into Alternatives

(Bloomberg) -- HSBC Holdings Plc’s private bank raised a record of about $3.2 billion for alternative investments from its clients globally in 2021, a jump of nearly 40% from the previous year, as the wealthy look to escape volatility and diversify their portfolios. 

Clients in Asia, where HSBC is targeting wealth management as a growth engine, added $1.9 billion for alternative investments, while Europe, the Middle East and Africa saw $1.3 billion in inflows, the bank said in a statement on Thursday. 

The increase was driven by “continued momentum” in hedge funds, and private markets where clients in Asia more than doubled their aggregate commitments, HSBC, Europe’s largest bank, said in the statement. 

Rich Asians are pouring money at a record pace into alternative assets through private banks and high-end investment firms to escape low interest rates and volatile listed markets. The haul at JPMorgan Chase & Co.’s private banking arm from Asian clients more than doubled last year to an all-time high, for example. 

HSBC’s private bank offers alternative investments including hedge funds, private markets and real estate, in partnership with HSBC Asset Management’s alternatives team. 

Lavanya Chari, global head of investments & wealth solutions, said the bank aims to “broaden our alternative investments offering to also meet the long-term investment demands of our personal banking and Premier customers, while improving solutions” for ultra-high net worth clients.  

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