A curious thing happened in the sleepy English market town of Melksham, Wiltshire, last summer. The beautiful surroundings of the west country provided the backdrop to a decision by a small group of people which could yet have wide repercussions for one of the world's largest banks.
On a sunny day in August, the trustees of a new pension fund, Cooper Avon Tyres, were deciding who to ask to handle their £75 million ($120 million) of assets. The fund is not large, but for present and future employees such a decision is always important.
Having taken the advice of their consultant, Lane Clark & Peacock, they decided to appoint two managers and give them half each to manage on a balanced basis. The first name was an obvious one: Fidelity. The world's largest fund manager has a global reputation for investment excellence. The second name was more surprising: HSBC Asset Management.
While HSBC has transformed itself from the bank that financed Hong Kong's phenomenal success, into a pan-Asian force and latterly into a truly global power its asset-management business remains severely under strength. Says one close follower of the business: "It ought to be up there challenging the likes of Capital Group.