Hsbc Starts Super Assault In Australia

The Age

Friday June 27, 2008

Danny John

GLOBAL bank HSBC has launched a wholesale wealth management business at its Sydney headquarters to channel funds into high-performing foreign economies.

A projected rise to $3.3trillion in Australia's booming superannuation market over the next nine years has prompted HSBC's assault on the industry's big players.

The move is aimed at cashing in on an increasing need for many fund managers to look overseas for growth.

It comes after HSBC recently ruled out intervening in the Westpac-StGeorge merger, effectively turning its back on building a retail banking business in Australia.

The development of the superannuation market over the past 20 years has resulted in the country becoming a leading proponent of funds management globally, and a rising number of fund managers have sought to change their mandates to allow them to invest more overseas as the Australian investment markets have proved too small to cope with the large inflows of super money.

As a result, the specialised Australian market has become "strategically important" for HSBC, the chief executive of local banking operations, Stuart Davis, said yesterday.

Former Westpac investment manager Charles Genocchio has been poached from Barclay's Global Investors to run HSBC's new Australian funds and investments division.

© 2008 The Age

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