Standard Chartered Expands Hedge Fund Access for Wealth Clients

Standard Chartered is increasing access to hedge funds for its wealth management clients as the Asia-focused bank looks to help investors diversify portfolios and reduce exposure to heightened market volatility.

The bank is encouraging clients to allocate part of their assets to hedge fund strategies that can potentially deliver more stable returns during turbulent markets. Samir Subberwal, Standard Chartered’s global head of wealth solutions, retail products, data and analytics, said hedge funds can provide investors with an additional layer of protection while complementing traditional investments.

Strategies such as equity market neutral funds and multi-strategy fund of hedge funds are designed to generate positive absolute returns with relatively low correlation to broader financial markets. According to Subberwal, these strategies have demonstrated resilience over the past several years and could help investors navigate periods of uncertainty.

Demand for alternative investments is rising globally as wealthy investors look beyond traditional stocks and bonds. Hedge funds delivered an average return of 7% during the first half of 2026, exceeding their 10-year average return of 4.1%, according to a Goldman Sachs note.

The hedge fund industry has also attracted record amounts of capital. Data from industry research firm HFR showed total hedge fund assets under management increased by $409 billion in the latest quarter, reaching $5.6 trillion. The increase represented the largest quarterly expansion on record.

Standard Chartered plans to make hedge fund allocations an important part of its broader wealth management offering. The strategy comes as the bank capitalizes on Asia’s expanding affluent population and growing demand for professional wealth advice.

The lender recently reported stronger-than-expected first-half profit, supported by growth in its wealth and global banking operations. Wealth income surged 38%, helped by double-digit growth in investment products, higher inflows and an increase in new client accounts.

Managed investments, including public funds and variable capital companies, structured products and cash equities were among Standard Chartered’s fastest-growing offerings. By adding greater access to hedge funds, the bank aims to provide clients with a more comprehensive range of investment options while improving portfolio diversification and resilience during volatile market conditions.