US asset manager Federated Hermes plans to establish an office in Hong Kong to capitalize on Asia's market opportunities. The board-approved move, set for announcement at the upcoming Asian Financial Forum, addresses global geopolitical tensions and client demands for local services.
Federated Hermes, a New York-listed asset-management firm headquartered in Pittsburgh, plans to set up a Hong Kong office to seize opportunities in Asia’s markets amid ongoing global geopolitical tensions. The company confirmed the move a year after CEO Chris Donahue stated at the Asian Financial Forum (AFF) that the firm was considering a presence in the city. The plan has now won board approval and will be announced during this year’s AFF, which kicks off on Monday, subject to a nod from the Securities and Futures Commission.
“It’s vital that we’re able to service [the biggest financial institutions] in Hong Kong at a local level, because this is where they’re seeing a lot of their growth,” said Jim Roland, head of distribution for Asia Pacific at Federated Hermes, which managed US$871.2 billion in assets as of the end of September. The asset manager already has offices in Singapore, Tokyo, and Sydney, with the Hong Kong expansion based on feedback from clients and partners.
Demand for asset diversification has grown since the US-initiated tariff war in April, prompting clients to rethink US equity investments. “They don’t want to get out of US equities, but they’re a bit skittish following this sharp sell-off [in April] followed by the sharp recovery,” Roland said. Federated Hermes’ money-market assets reached a record US$652.8 billion at the end of September, up 10 per cent from a year earlier. This joins a wave of finance firms setting up in Hong Kong to service Asian growth.
