HSBC Global Asset Management announced that from 5 January 2009 its Luxembourg-based fund range would be available to UK intermediaries via the Cofunds platform. Historically fund platforms have been reluctant to offer access to SICAV funds due to administrative and technical difficulties. Intermediaries themselves have also show a reluctance to invest in mandates registered in Europe. The move gives UK investors easier access to some of the biggest actively managed funds in their respective global sectors. These include the US$2.03bn HSBC GIF Indian Equity fund, managed by Sanjiv Duggal, US$904m HSBC GIF BRIC Freestyle fund, managed by Nick Timberlake, US$2.03bn HSBC GIF Chinese Equity
Fund, managed by Richard Wong and the US$464m Brazil Equity Fund managed by Luiz Ribeiro. In addition to the GEM funds HSBC will also offer its GIF Climate Change fund, launched in November 2007.
RBC continue hiring offensive
RBC Wealth Management, the wealth management arm of Royal Bank of Canada, has had an active week; firstly they poached an international team from Citibank headed by Sumit Sibal. It is hoped this team will allow them to expand their services to non-resident Indians based in Europe and Asia. Secondly the group brought in Peter Lucas from Ashburton to its Jersey team. Lucas will report to International head of investments Kevin Flanagan and aims to develop RBC’s investment advisory service further. The moves this week follow on the heels of a number of wealth manager appointments in mid 2008.
Aberdeen acquires Credit Suisse fund arm
Finally, one story that you might have missed if you started your New Year celebrations early was the £250m all-share deal that will make Aberdeen Asset Management one of the UK´s largest listed fund management groups with assets surpassing £150bn after their acquisition of Credit Suisse’s fund management arm.
Subject to shareholder approval, the deal is expected to complete by 30 June 2009 and will potentially make Aberdeen one of the largest listed fund managers in the UK market. The UK group currently has some £110bn in assets under management and the tie up with Credit Suisse will add an additional £40bn in assets. The portion of Credit Suisse Aberdeen will take over is similar to its own existing business, a long-only traditional asset manager with presence in Europe, Asia and Australasia. Credit Suisse’s product range, diversified predominantly across fixed income, money market and equities, is to be integrated into the Aberdeen investment process that was adopted group wide in earlier this decade.
Some of Credit Suisse’s products are sold through its parent’s private banking division and Aberdeen has agreed an extension of the existing distribution agreement giving it access to the banking network of Credit Suisse. According to the groups the deal will not only expand Aberdeen’s business but will help to strengthen its balance sheet by the issue of new shares and a reduction in relative gearing as the acquired business is debt free.