HSBC AM Establishes Alternatives Unit

The combined unit will have a 150-strong team and combined assets under management and advice of $53 billion.

HSBC Asset Management has announced that it is bringing its alternatives capabilities under a single business unit, HSBC Alternatives, which will comprise of HSBC Alternatives Investments (HAIL), which includes the multi-manager hedge fund and private market teams, as well as the firm’s private debt, venture capital, and direct real estate teams.

With its alternative assets doubling over the past four years, the move is the firm’s the next step in its strategy to reposition the business as a core solutions provider and specialist Asia, emerging markets, and alternatives asset manager, HSBC said in an announcement on Wednesday.

HSBC has enlisted current global chief investment officer Joanna Munro to lead the combined unit. She will continue to be based in London, reporting directly to Nicolas Moreau as a member of the management committee. Munro joined HSBC in 2005, and held roles including CEO multi-manager and CEO Asia Pacific before becoming CIO in 2019.

She has been tasked with enhancing and expanding the range of alternative investments available to the firm’s wealth and institutional clients, across indirect and direct alternatives including hedge funds, private markets, and real estate, and will look to grow the firm’s capabilities in Asia, the announcement said.

Xavier Baraton, currently global CIO for fixed income, private debt, and alternatives, will succeed Munro as global CIO. Reporting to Nicolas Moreau, he will join the management committee and continue to be based in Paris.

Baraton brings almost 20 years’ experience in investment management. He joined HSBC Asset Management as global head of credit research in 2002 and has been CIO for fixed income since 2010.