HSBC to Recommend Hedge Funds

Date: Tuesday, September 25, 2007
Author: HFN Daily Report

Banking giant HSBC plans to start recommending hedge funds to wealth management clients in Hong Kong.

HSBC has offered a similar service in Singapore since May. According to reports, it will expand the offering into Hong Kong sometime in the next couple of months.

The bank will initially be recommending multi-manager and multi-strategy funds to premier wealth management clients with more than HK$1 million ($130,000). It will earn a commission on each recommended fund in which a client invests.

HSBC is also considering launching some structured products in Asia based on hedge funds. The bank has been under attack recently from activist firm Knight Vinke for not focusing enough attention on Asia.