Annual Financial Report - 20 of 44

RNS Number : 1112A

HSBC Holdings PLC

27 March 2012

 



Other information

Funds under management and assets held in custody

Funds under management

	2011		2010
	US$bn		US$bn
Funds under management
At 1 January ..........................	925		857
Net new money ......................	2		42
Value change ..........................	(40)		33
Exchange and other ...............	(40)		(7)
At 31 December .....................	847		925

	At 31 December
	2011		2010
	US$bn		US$bn
Funds under management by business
Global Asset Management ......	396		439
Global Private Banking ..........	259		277
Affiliates ................................	3		3
Other .....................................	189		206
	847		925

Funds under management ('FuM') at 31 December 2011 amounted to US$847bn, a decrease of 8% when compared with 2010. Both Global Asset Management and GPB fund holdings decreased, reflecting adverse equity market and foreign exchange movements.

Global Asset Management funds, including emerging market funds, decreased by 10% to US$396bn as a result of client withdrawals from lower yielding liquidity funds mainly in Europe and North America and adverse global equity markets performance and foreign exchange movements, partly offset by inflows in long-term funds, particularly in Europe.

GPB funds decreased by 7% compared with 31 December 2010 to US$259bn as net new money inflows which benefited from cross-business referrals and the focus on faster-growing market business were more than offset by adverse movements in financial markets and foreign exchange. Client assets, which include FuM and cash deposits and provide an indicator of overall GPB volumes, decreased by US$12bn to US$377bn due to the reduction in FuM.

Other FuM, decreased by 8% to US$189bn primarily due to the disposal of the real estate and infrastructure fund management activity during the year.

Assets held in custody and under administration

Custody is the safekeeping and servicing of securities and other financial assets on behalf of clients. At 31 December 2011, we held assets as custodian of US$5.2 trillion, 7% lower than the US$5.7 trillion held at 31 December 2010. This was mainly driven by a decrease in the market value of assets and adverse foreign exchange movements.

Our assets under administration business, which includes the provision of various support function activities including the valuation of portfolios of securities and other financial assets on behalf of clients, complements the custody business. At 31 December 2011, the value of assets held under administration by the Group amounted to US$2.6 trillion, compared with US$2.7 trillion in 2010.

Property

At 31 December 2011, we operated from some 9,500 operational properties worldwide, of which approximately 2,270 were located in Europe, 2,940 in Hong Kong and Rest of Asia-Pacific, 840 in North America, 3,210 in Latin America and 250 in the Middle East and North Africa. These properties had an area of approximately 65.7m square feet (2010: 71.3m square feet).

Our freehold and long leasehold properties, together with all our leasehold land in Hong Kong, were valued in 2011. The value of these properties was US$8.9bn (2010: US$7.1bn) in excess of their carrying amount in the consolidated balance sheet. In addition, properties with a net book value of US$1.3bn were held for investment purposes.

Our operational properties are stated at cost, being historical cost or fair value at the date of transition to IFRSs (their deemed cost) less any impairment losses, and are depreciated on a basis calculated to write off the assets over their estimated useful lives. Properties owned as a consequence of an acquisition are recognised initially at fair value.

Further details are included in Note 25 on the Financial Statements.

Legal proceedings and regulatory matters

Details are included in Note 44 on the Financial Statements.

 

END

 

 

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