Standard Chartered adopts hedge fund strategies for wealth clients

Standard Chartered is steering its wealth management clients toward hedge fund strategies, betting that lowly correlated absolute returns will offer a buffer against market turbulence.

The bank confirmed its push to incorporate hedge fund allocations into its wealth clients’ portfolios, including equity market neutral strategies and multi-strategy fund-of-hedge-funds vehicles. The goal is straightforward: help clients diversify beyond stocks and bonds into products designed to generate returns regardless of which direction markets move.

The numbers behind the pivot

StanChart’s own hedge fund assets under management surged fivefold over the 16 months leading up to July 2026. The bank’s broader wealth division has been on a tear. First-half 2026 wealth income grew 38%, fueled by higher investment product sales as clients sought shelter from choppy markets.

Samir Subberwal, StanChart’s global head of wealth solutions, framed the hedge fund push as a supplementary hedge that would facilitate more stable returns while enriching the bank’s product offerings for greater portfolio diversification.

The timing aligns with a broader boom in the hedge fund industry. Total industry assets under management hit $5.6 trillion by mid-2026, a record. Hedge funds returned an average of 7% during the first half of the year, nearly double their 10-year average of 4.1%.

From Singapore to Jersey: building the infrastructure

In February 2026, the bank launched a fund-of-hedge-funds sub-fund called STAR in partnership with Seviora Capital. The product initially targeted high-net-worth clients in Singapore, Hong Kong, and Jersey.

Why hedge funds, why now

Equity market neutral strategies, one of the approaches StanChart is offering, aim to profit from relative price movements between stocks while maintaining minimal exposure to broad market direction.

The 7% average return that hedge funds posted in the first half of 2026 also helps the sales pitch. StanChart’s 38% jump in first-half wealth income suggests these conversations are already happening at scale.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.