HSBC GAM sees outflows from high-value mandates

Water tapHSBC Global Asset Management has seen assets under management fall to $409 billion (€308 billion) from $425 billion at the end of 2012.

However, they are still above the year-ago figure of $405 billion.

The 4% decrease is attributed to foreign exchange movements reflecting the stronger US dollar against major currencies, and the net outflow of $1 billion mainly from a “small number of high-value mandates in Europe” and outflows in liquidity funds.

But these movements were partly offset, says HSBC Group as it reports its first-half results today, by strong inflows in fixed income from customers in Asia-Pacific, Europe and Latin America.

The exit of a large Hong Kong client also affected HSBC’s securities services business, which operates custody and other investment support services.

At June 30, 2013, assets under custody were $5.7 trillion, 5% lower than the US$6 trillion held at 31 December 2012. Foreign exchange movements also played an adverse role.

HSBC Group’s profit before tax on a reported basis was up 10% to $14.1 billion.

©2013 funds europe