HSBC Australia will boost its presence in master trusts and wrap accounts, spearheading a global move away from direct sales, according to chief executive officer Barry Sheehan.
Sheehan has successfully submitted a five-year strategic plan for the Australian business to HSBC in London, which includes boosting funds under management from the present level of $4.8 billion to $12 billion.
“Our plan for Australia is to become a centre of excellence in third-party distribution and due to the dynamics of this form of distribution, HSBC Australia is to play a leading role in both the local and global game,” Sheehan says.
“I accept the projected growth will be a J curve and we will not get results in the first two years but once we start to achieve organic growth in funds under management, then we can become acquisitive.”
HSBC is also planning new product development with the rollout of some products next year and Sheehan says the group has also spent some time getting the team right for the move. The fund manager has recently restructured many of the positions in the company and is still looking for a head of retail and marketing.
Another early move has been to get the fund manager re-rated by the rating houses. Assirt has just released its report, which rated the property securities team as strong, and Australian and international equities teams as competent. The only negative was for the international fixed interest team, which was rated weak.
“HSBC can be considered somewhat of a sleeping giant ready to awaken and the business is in a strong position to realign its strategy from one of stabilisation to pursuing an ambitious growth path,” Assirt chief executive officer Krystyna Weston says in the report on the fund manager.
Morningstar and van Eyk are scheduled to re-rate HSBC before the end of the year, says Sheehan.
