Standard Chartered increases hedge-fund allocations for clients

Standard Chartered is directing more wealth-client assets into hedge-fund strategies, emphasizing equity market-neutral and multi-strategy funds to diversify holdings and lower exposure to volatile markets. The bank says these alternatives can produce returns with lower correlation to broad equity and bond markets.

Samir Subberwal, Standard Chartered’s global head of wealth solutions, retail products, data and analytics, said: “Hedge fund products can provide clients with an additional source of relatively stable, uncorrelated returns during periods of market turbulence.”

Equity market-neutral strategies balance long and short stock positions to remove exposure to overall market direction and aim to profit from stock selection. Multi-strategy funds combine several hedge fund approaches or allocate across multiple managers to spread risk and pursue consistent absolute returns.

The bank’s emphasis follows recent gains in the hedge fund industry. Data show hedge funds returned an average 7% in the first half of 2026, above their 10-year average of 4.1%. Industry reporting recorded a $409 billion inflow in the second quarter, taking global hedge fund assets under management to about $5.6 trillion.

Standard Chartered’s wealth business has expanded: wealth income rose 38% in the first half of 2026, contributing to stronger-than-expected overall profit. Investment product sales grew sharply when clients increased inflows and opened more accounts, and demand for professional wealth advice rose during market uncertainty.

Hedge funds typically target absolute returns and can have different fee and liquidity profiles compared with traditional investment products. The bank offers these strategies alongside its other wealth solutions and advisory services.