Standard Chartered expands hedge fund push as wealth clients seek volatility protection

Standard Chartered is expanding its hedge fund offerings as it encourages wealth management clients to diversify their portfolios and minimize exposure to market volatility, according to Reuters. The bank’s global head of wealth solutions, retail products, data, and analytics, Samir Subberwal, revealed that the Asia-focused institution is planning to allocate a larger portion of clients’ assets to alternative strategies as investors increasingly pursue returns beyond conventional equities and bonds.

Subberwal stated that hedge fund products can offer clients a steady source of returns that are less correlated with broader market fluctuations during times of market instability. Some of the strategies being promoted by the bank include equity market neutral and multi-strategy hedge fund funds, which aim to generate absolute returns while maintaining limited correlation with broader markets.

This push aligns with a strong period for the global hedge fund industry. During the first half of 2026, hedge funds delivered an average return of 7%, significantly surpassing their 10-year average of 4.1%, as reported by Goldman Sachs. Global hedge fund assets under management also reached an all-time high, with a record increase of $409 billion in the second quarter, totaling $5.6 trillion.

Standard Chartered’s enhanced focus on alternatives coincides with the rapid growth of its wealth management business, which saw a 38% increase in wealth income during the first half of the year, contributing to an overall profit that exceeded expectations. Market uncertainty has fueled demand for professional wealth advice, driving investment product growth and increased client inflows.