HSBC has announced the launch of HSBC Alternative Investments in Australia to distribute funds of hedge funds to local wholesale investors, targeting institutional clients as well as asset
HSBC has announced the launch of HSBC Alternative Investments in Australia to distribute funds of hedge funds to local wholesale investors, targeting institutional clients as well as asset consultants and financial advisers.
The firm will offer funds of hedge funds covering a wide range of investment and investor profiles, including multi-manager and multistrategy products as well as funds targeting specific strategies or focusing on particular countries or regions.
Like its global parent, HSBC Alternative Investments Australia will specialise in absolute return funds as well as offering tailor-made diversified portfolios of hedge funds to institutional clients.
Its first product to market will be the HSBC Australia Special Opportunities Fund, a concentrated fund of funds focused on corporate events such as mergers, restructuring, stressed and distressed securities as well as activist managers. The fund has been created for investors seeking high alpha returns who are not concerned with short-term liquidity.
‘The establishment of HSBC Alternative Investments in Australia supports HSBC’s local strategy of making full use of the group’s global strengths and participating in areas where we have a strong competitive advantage in Australia,’ says Stuart Davis, chief executive of HSBC Bank Australia.
‘Our strategy sets HSBC apart from other banks in this market – the role we play within HSBC’s global network, combined with our ability to bring HSBC’s global proposition to the Australia.
‘HSBC Alternative Investments is the third largest client advisor in the hedge funds industry globally in terms of assets under management, and we intend to at least match that strength in the Australian market.’
Patrick Tuohy, global head of sales and marketing for HSBC Alternative Investments, says: ‘As one of the largest players in the global hedge fund industry, HSBC Alternative Investments has USD47.4bn of client assets invested in well over a thousand hedge funds.
‘Our experience, combined with our global deal flow and long-term relationships, can give Australian clients access to alternative investment opportunities that local institutions simply cannot access.
‘The launch of HSBC Alternative Investments in Australia is strategically important to the HSBC Group. As a mature financial market and an early adopter of alternative products, we see Australia as arguably the most significant opportunity for alternative investment funds in Asia over the next five to 10 years.’
The fund of hedge funds manager has teams of investment specialists based in Sydney, London, New York, Geneva, Hong Kong, Tokyo and Singapore, with decisions taken by an investment committee that has been working together since 1996.
Hedge funds services that will initially be available in Australia will include funds of hedge funds with HSBC Alternative Investments as investment advisor, tailored institutional portfolios, and creation of structured products based around hedge funds.
Formed in 1994, HSBC Alternative Investments is the group’s dedicated fund of hedge funds business, advising on a range of multi-manager investment funds, separate accounts and structured products for institutional and high net worth investors.
Through a network of 35 branches and offices in Australia, the HSBC Group offers financial services including personal and commercial financial services, financial planning, trade finance, treasury and financial markets, payments and cash management and securities custody.