Standard Chartered is expanding its wealth management offerings by directing a portion of client assets into hedge fund strategies, aiming to shield portfolios from volatility as global markets face heightened uncertainty.
The bank’s global head of wealth solutions, retail products, data and analytics, Samir Subberwal, said the move is designed to complete its product suite and provide clients with tools to diversify holdings and manage risk amid fluctuating markets. The strategy includes equity market neutral and multi-strategy fund of hedge funds, which target positive, lowly correlated absolute returns.
The shift comes as Standard Chartered reported a first-half profit that exceeded forecasts, driven by a 38% increase in wealth income. The bank’s managed investments, including public funds, variable capital companies, structured products, and cash equities, saw the strongest growth, alongside a double-digit rise in investment product inflows and new account openings.
Industry data shows hedge funds have delivered robust performance in 2026, with global hedge funds averaging a 7% return in the first six months, according to a Goldman Sachs note. This outpaces the 10-year average of 4.1%. Total hedge fund assets under management grew by $409 billion to reach $5.6 trillion last quarter, marking the largest quarterly increase on record, according to HFR.
The move reflects Standard Chartered’s broader push to capitalize on Asia’s expanding affluent population, where demand for risk-mitigating investment solutions is growing amid volatile market conditions.
