Hong Kong’s central role in Asia’s wealth industry, together with the city’s robust financial ecosystem, including strong support from the Hong Kong Trade Development Council (HKTDC), were the chief drivers behind the decision of global investment manager Federated Hermes to establish an office in Hong Kong, according to Asia Pacific Head of Distribution Jim Roland.

The move was announced at the Asian Financial Forum (AFF), organised by the HKTDC in January, and was widely reported across the region’s financial media.

Mr Roland said it was direct feedback from clients and large financial institutions that ultimately tipped the balance in favour of a Hong Kong presence.

“Clients told us it would be easier to work together if we were local, able to understand market needs at a granular level and support their advisors, business units and end-clients more closely.”

“Having a Hong Kong office supports deeper client engagement, better market insight and stronger delivery across the full wealth and institutional lifecycle.”

Support from the HKTDC also proved crucial to the decision, following several years of careful engagement and preparation, according to Mr Roland.

In addition to facilitating introductions to key regulatory agencies, the HKTDC invited CEO Chris Donahue to speak at last year’s AFF – an opportunity that, in hindsight, proved decisive in building the firm’s confidence in the Hong Kong opportunity.

“Bringing senior decision-makers to the market has been very powerful, allowing them to see the opportunity, meet stakeholders, and understand first-hand why Hong Kong matters strategically for long-term growth,” said Mr Roland.

The HKTDC’s Hong Kong headquarters and New York office coordinated to brief Mr Donahue ahead of his visit to Hong Kong and remained in regular contact with the firm’s strategy team, as plans for the office opening took shape.

Introductions by the HKTDC to key stakeholders helped expedite the office’s approval process and streamline start-up logistics.

Mr Roland noted that through HKTDC’s platforms, such as AFF, the asset manager had been able to meet local business partners and build meaningful relationships, enabling the firm to enter the market with confidence.

In addition, the conference provided the ideal forum to raise the firm’s brand profile across the region. With support from the HKTDC, the firm secured numerous interviews for its senior executives with leading financial media outlets broadcasting live from the venue.

Building on core strengths from Asia’s financial hub

Headquartered in Pittsburgh and with over HK$7 trillion (US$900 billion) in assets under management, Federated Hermes offers a comprehensive portfolio of solutions across liquidity, fixed income, equity, private markets, multi-asset and responsible investing strategies, with clients spanning the Americas, Europe, Africa and Asia-Pacific.

The new office in Hong Kong will complement Sydney, Tokyo and Singapore locations, improving client coverage and ensuring consistent servicing and client outcomes across the region, related Mr Roland.

“In the near term, the office will be distribution-led, focused on liquidity solutions and cash management, which is a core strength globally and serves as a strong entry point for wealth and family office relationships in Asia.”

As a US-based investment manager, Mr Roland expects the office to generate strong interest in its US systematic equities strategy, which offers a more differentiated approach beyond concentration in the market’s most topical stocks.

But being anchored in Asia’s top financial centre is also bound to strengthen the firm’s Asian equities capability, as well as creating room to develop new strategies.

Looking ahead, immediate priorities include completing the regulatory process, finalising office space and building the local team. Following launch, the focus will shift to deepening engagement with private banks, wealth intermediaries, family offices and institutional investors.

Over the longer term, the firm is confident in the role Hong Kong can play in supporting its strategic trajectory.

“Being in Hong Kong supports our broader ambition to build a truly global firm. Asia Pacific, while the smallest region in Federated Hermes today, is a significant growth opportunity, particularly in the wealth segment. A presence in Hong Kong is integral to capturing that growth opportunity,” concluded Mr Roland.