Standard Chartered has signalled concern about the solidity and prospects of its Asian securities services franchise by re-locating its Global Head of Securities Services, Paul Hedges, from London to Singapore. Hedges had an earlier spell in Hong Kong in 2003.
For now, Hedges is talking more about growth than consolidation. “Considering Asia’s aging population, the exponential accumulation of wealth and the surge of Asian-originated institutional investment flows, we see a tremendous opportunity for securities services growth in the region,” he says. His main target markets are China, Korea, Malaysia and Thailand. Qualified Foreign Institutional Investor (QFII) business in Chin is a particular priority, he says.
Four years ago, Standard Chartered put itself on a potential collision course with its global custodian clients by expanding its securities services business to offer fund accounting and administration services to local fund managers in Singapore, Hong Kong and Indonesia. Assets under administration by the bank grew 52% in 2004, and transaction volumes were up 50%.
“We want to continue to provide our clients with outstanding sub-custody services and expand into the additional services they now require as their businesses develop, including regional custody and funds administration,” says Karen Fawcett, Group Head of Transaction Banking. “We already have a strong client base of global custodians, broker dealers and fund managers and they have been especially appreciative of our client servicing as seen from the results of recent industry benchmark surveys in Global Custodian and Global Investor magazines. Paul’s move to Singapore is a further commitment to our clients of our focus in this business, not only to give our existing clients what they are looking for but also to extend these benefits to new clients.”
In the UK, Simon Walker will remain as Head of Securities Services, Europe. He will continue to report to Paul Hedges.