HSBC has reported a 6% rise in funds managed by its asset management unit and a 3% increase in assets kept in safekeeping by its custody business.
Assets under management (AuM) within HSBC Global Asset Management increased to $445 billion (€391 billion) at December 31, 2014, while assets under custody reached $6.4 trillion, the company says in its annual report.
The increase in AuM is thanks to favourable movements in bond and equity markets, and to money raised through closer collaboration with other businesses in the banking group. The asset management devision has been strengthening collaboration across the global HSBC businesses to better serve customers, the banks says, and this helped in attracting $26 billion of net new money.
New fund flows mainly went into fixed income and liquidity products.
Another $18 billion in reported AuM results from a change in the way the company reports its funds under management. The funds had previously been reported in another category of business.
HSBC says the investment performance in over 74% of HSBC Global Asset Management eligible funds by value were above the market median.
Assets under administration, a business line that compliments the custody business, increased 6% to $3.2 trillion.
At the group level, HSBC saw a drop in profit before tax of 17% to $18.7 billion.
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