Key facts
- Standard Chartered is deploying a portion of its wealth management clients' assets into hedge funds.
- The bank is offering strategies such as equity market neutral and multi-strategy fund of hedge funds.
- These strategies aim to generate positive, lowly correlated absolute returns.
- Global hedge funds returned an average of 7% in the first six months of 2026.
- Hedge fund assets under management grew by $409 billion to $5.6 trillion last quarter.
Standard Chartered is enhancing its wealth management offerings by incorporating hedge fund strategies to help clients navigate heightened market volatility. The bank is providing access to products like equity market neutral and multi-strategy fund of hedge funds, which aim to generate stable, low-correlated returns.
This initiative by StanChart aligns with a broader trend of increasing investor interest in alternative assets beyond traditional stocks and bonds. The bank is leveraging the growth of affluent populations in Asia to expand its wealth business.
According to a Goldman Sachs note, global hedge funds returned an average of 7% in the first six months of 2026, significantly above the 10-year average of 4.1%. Data from HFR indicates that hedge fund assets under management saw the largest historical increase last quarter, growing by $409 billion to reach $5.6 trillion.
Samir Subberwal, StanChart's global head of wealth solutions, stated that these strategies are designed to offer clients a hedge and stable returns, helping them manage market choppiness. He also noted the resilience of these funds over recent years.
StanChart reported a strong first-half profit, with wealth and global banking revenue surging, driven by a double-digit rise in investment products. Increased market volatility has boosted demand for wealth advice and managed investments.