Standard Chartered is increasing its focus on hedge fund strategies as it encourages wealth management clients to diversify portfolios and reduce their exposure to volatile markets, according to a report by Reuters.

The Areport cites Samir Subberwal, StanChart’s global head of wealth solutions, retail products, data and analytics as saying that the Asia-focused bank is looking to allocate more of clients’ assets to alternative strategies as investors increasingly seek returns beyond traditional equities and bonds.

Subberwal said hedge fund products can provide clients with an additional source of relatively stable, uncorrelated returns during periods of market turbulence.

Among the strategies being highlighted by the bank are equity market neutral and multi-strategy funds of hedge funds, which are designed to pursue absolute returns with limited correlation to broader markets.

The push comes amid a strong period for the global hedge fund industry. Hedge funds generated an average return of 7% during the first half of 2026, according to Goldman Sachs, comfortably ahead of their 10-year average of 4.1%.

Industry assets have also expanded sharply. HFR data showed global hedge fund assets under management increased by a record $409 billion in the second quarter to $5.6 trillion.

StanChart’s greater emphasis on alternatives comes as its wealth management business continues to grow rapidly. The bank reported a 38% increase in wealth income in the first half of the year, contributing to a stronger-than-expected overall profit.

Investment products recorded particularly strong growth as clients increased inflows and opened more accounts, with market uncertainty driving demand for professional wealth advice.