Comparisons are with 31 December 2013 unless stated otherwise.
Funds under management ('FuM') at 30 June 2014 amounted to US$964bn, an increase of 5%, primarily due to favourable market movements and net inflows in the first half of the year.
Global Asset Management FuM increased by 11% to US$465bn due to strong inflows, notably in fixed income products from our customers in Europe and Asia, net inflows from liquidity funds in Europe and North America and the transfer of FuM from other parts of the Group, which had previously been reported within Other FuM. In addition, FuM benefitted from favourable movements in bond and equity markets.
GPB FuM were broadly unchanged as favourable market and foreign exchange movements were largely offset by negative net new money in Europe as we continued to reposition our client base and disposed of our HSBC Trinkaus & Burkhardt AG business in Luxembourg. In the first half of 2014, we agreed to sell a portfolio of private banking assets in Switzerland to LGT Bank (Switzerland) Ltd. The portfolio had FuM of US$8.5bn at 31 December 2013 and the transaction is expected to complete in the second half of 2014.
Other FuM decreased by 3% to US$207bn, primarily due to the transfer of FuM into Global Asset Management noted above.
Assets held in custody and under administration
Custody is the safekeeping and servicing of securities and other financial assets on behalf of clients. At 30 June 2014, we held assets as custodian of US$6.6 trillion, 6% higher than the US$6.2 trillion held at 31 December 2013. This was mainly driven by new business in the UK, Australia and Hong Kong coupled with favourable foreign exchange movements.
Our assets under administration business, which includes the provision of bond and loan administration services and the valuation of portfolios of securities and other financial assets on behalf of clients, complements the custody business. At 30 June 2014, the value of assets held under administration by the Group amounted to US$3.2 trillion, which was 3% higher than at 31 December 2013. This was mainly driven by new business in the UK and Hong Kong and favourable foreign exchange movements.
Review of transactions with related parties
The FCA's Disclosure Rules and Transparency Rules require the disclosure of related party transactions that have taken place in the first six months of the current financial year and any changes in the related party transactions described in the Annual Report and Accounts 2013 that have or could have materially affected the financial position or performance of HSBC. A review has been undertaken and any such related party transactions have been disclosed in the Interim Report 2014.
