Standard Chartered adopts hedge fund strategies for wealth clients

Standard Chartered is steering its wealth management clients toward hedge fund strategies, betting that lowly correlated absolute returns will offer a buffer against market turbulence. The bank confirmed its push to incorporate hedge fund allocations into its wealth clients’ portfolios, including equity market neutral strategies and multi-strategy fund-of-hedge-funds vehicles. The goal is straightforward: help clients diversify beyond stocks and bonds into products designed to generate returns regardless of which direction markets move. The numbers behind the pivot StanChart’s own hedge fund assets under management surged fivefold over the 16 months leading up to July 2026. The bank’s broader wealth division has been on a tear. First-half 2026 wealth income grew 38%, fueled by higher investment product sales as clients sought shelter from choppy markets. Samir Subberwal, StanChart’s global head of wealth solutions, framed the hedge fund push as a supplementary hedge that would facilitate more stable returns while enriching the bank’s product offerings for greater portfolio diversification. The timing aligns with a broader boom in the hedge fund industry. Total industry assets under...