HSBC takes wealth management to MENA

HSBC Global Asset Management has made a foray into wealth management in the Middle East and North Africa (MENA) region.

Earlier this month, the firm launched a discretionary wealth management service for local clients. The service will allow customers in the region to build their own segregated investment portfolios.

The asset, liabilities, liquidity and investment terms of these mandates will be matched to the individual requirements of each investor.

Customers will be able to use the service if they have $1m or more in investable assets.

Money held in the portfolio will be invested directly in equities, fixed income and cash, instead of the respective fund vehicles.

Francesca McDonagh, regional head of retail banking and wealth management, MENA, said the service is best suited to investors that have “heavy demands on their time.” Instead of making their own investment decisions, they will now be able to delegate those to the discretionary management team.

The size of the wealth management industry in the MENA region stands at around $800 bn, with a large proportion of the money concentrated in the hands of a few very wealthy investors.

This makes the region an attractive target for global wealth managers and renders relationship building all the more important.

HSBC is well positioned as the largest and most widely represented international banking organisation in the region.

It has offices in 14 MENA countries, including United Arab Emirates, Egypt and Qatar. Last year’s profit before tax from the region amounted to nearly $1,5bn.

HSBC Global Asset Management is one of the largest financial services organisations globally, with offices in 30 countries and over $400bn in funds under management.

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