HSBC Holdings PLC has boosted the assets it holds as a custodian by 9%, which shows an increase in the assets it holds for safekeeping and servicing of securities and other financial assets on behalf of clients from $5.2 trillion in 2009 to $5.7 trillion in 2010.
The group says the growth was mainly driven by an increase in the market value of assets and favourable foreign exchange movements.
“Our assets under administration business, which includes the provision of various support function activities including the valuation of portfolios of securities and other financial assets on behalf of clients, complements the custody business. At 31 December 2010, the value of assets held under administration by the Group amounted to $2.7 trillion, compared with $2.8 trillion in 2009,” adds the report.
HSBC Holdings also revealed that its funds under management at 31 December 2010 increased by 8% when compared with 2009, which amounts to $925bn. Both Global Asset Management and GPB fund holdings increased, reflecting an improvement in equity market performance and strong net inflows.
Global Asset Management funds, including emerging market funds, increased by 4% to $439bn as a result of market performance gains and strong net inflows, particularly in Europe and Asia, partly offset by adverse foreign exchange movements.
“We remain one of the worlds largest emerging market asset managers with funds under management of $145bn at 31 December 2010 in countries outside North America, Western Europe, Japan and Australia,” says the financial report.
“GPB funds increased by 10% in 2010 to $277bn, driven by an improvement in equity market performance and strong net inflows which benefitted from our strength in emerging markets, hiring of key relationship managers and cross-business referrals,” says the report. “Client assets, which include funds under management and cash deposits and provide an indicator of the scale of GPB, increased by $23bn to $390bn due to the increase in funds under management. Other funds under management, which are mainly held by a corporate trust business in Asia, increased by 14% to $206bn.”