Wednesday, 1 October 2014
Last updated 11 hours ago
Oct 15 2012 | 8:40am ET
HSBC Holdings is cutting loose some of its smaller Asian hedge fund clients to concentrate on the more profitable ones.
Citing three people “with knowledge of the matter,” Bloomberg News said HSBC, which administers $150 billion in assets for hedge funds, is targeting funds managing less than $50 million for termination, although some of those cut manage as much as $100 million. The cuts follow a recent HSBC review of its fund administration clients and come as banks are looking for ways to save money to offset higher regulatory costs.
“From an admin point of view, serving a client that has $20 million in assets would be just as much as serving a client with $200 million—you still have to do the same asset valuations,” Allard de Jong, group director at Portcullis Fund Administration (S) Pte in Singapore (and a former head of Alternative Fund Services at HSBC there) told Bloomberg.
Hedge fund administrator fees are usually basis points of hedge funds assets under administration but with small funds, said de Jong, those points don't usually “kick in.” Smaller funds are often subject to minimum charges.
Investors have pulled over $440 million from Asian funds this year and, according to Eurekahedge, 70 Asian funds have closed so far in 2012.
Anthony D’Silva, a managing director in charge of business development in the Asia-Pacific region for Apex Fund Services, told Bloomberg his firm has been in talks with about a dozen funds cut loose by HSBC and is in the process of signing a few up.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
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