HSBC 2011 Annual Report Download - page 96

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Other information / Footnotes
94
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.