HSBC Bank s hunt for a new investment advisor is over. The company announced today the signing of an agreement with The Bank of New York to manage the eight HSBC portfolios, effective Sept. 28. The details of the agreement were not disclosed.
HSBC had been in negotiations with Wilmington Trust for several months, and at one point, it looked as though Wilmington would obtain the funds. However, earlier this month, those negotiations hit a wall ( MFMN 9/7/01). The details of the disagreement between HSBC and Wilmington were unclear, but apparently they were enough to void the deal. HSBC had formerly been in talks with Republic Funds, but that deal collapsed as well.
The Bank of New York serves as the investment advisor to the BNY Hamilton Funds, a family of 16 funds with over $9 billion in assets under management. The Bank of New Yorks long-term plan is to merge the eight HSBC funds into comparable BNY funds, said Kevin Bannon, CIO of the Bank of New York, however no time frame for that has been given. The eight HSBC Funds have about $200 million in assets under management. The company also plans to add a New York tax free money market fund to the BNY Hamilton Funds product line, Bannon said.