Hedge fund to relocate Singapore HQ to London

Singapore based hedge fund Orchard Global Asset Management with $5 billion in assets to relocate HQ to the City of London inspite of Brexit uncertainty, to take advantage of the City's top-class debt markets.

City of London skyline
A hedge fund with $5 billion in assets is moving its headquarters from Singapore to London to be near the City's global banking sector and to utilise the capital's expertise in debt markets.

Hedge fund relocation is a boost to London and the City's status amid Brexit turmoil 

In what the Financial Times described as "a boost for the financial hub threatened by Brexit", Orchard Global Asset Management has reportedly been steadily increasing numbers at its London office over the past year.Orchard, established 11 years ago in the wake of the credit crisis, has offices in Toronto, London and Houston, in addition to its Singapore headquarters."The relocation will be seen as a boost for London amid the political turmoil over Brexit and concerns over whether the City can retain its status as one of the world’s top financial centres, once outside the EU," reported the FT.

Fund management industry is more globally mobile than banking sector

"The effects of Brexit on the City’s fund management industry are still not entirely clear but are likely to be less than on the banking sector, which is planning to move thousands of jobs so it can still service clients after the UK’s departure from the EU."The impact on fund managers depends on the type and domicile of fund that the investment firm is running, and can range from having to ensure a form of presence within the bloc to almost no direct effects at all."Last week, the latest EY Brexit Tracker reported that, because of Brexit, 36 per cent of the 222 financial services companies surveyed were committed to, or were deliberating, establishing European hubs, with the figure rising to 56 per cent among banks and brokerages.

Financial services companies establish European hubs due to Brexit

EY estimated that up to 7,000 jobs could be relocated to Europe "in the near future" with about 2,000 new posts being created on the continent because of Brexit. The tracker also found that 20 companies had announced plans to transfer some £800 billion of assets – chiefly client cash and investments such as stock and bond holdings – out of London before the UK leaves the EU.

Japanese bank Norinchukin to create subsidiary and move staff to Amsterdam

Norinchukin, one of Japan’s largest banks, has become the latest London-based bank to announce it was relocating staff to a new European hub because of Brexit.The bank has announced the establishment of a wholly-owned subsidiary in Amsterdam, saying in a statement that the decision had been made “in response to the planned withdrawal of the United Kingdom from the European Union, and other changes to the economic environment in Europe”.The Guardian reported that Norinchukin is one of the 40 largest banks in the world, with a balance sheet total of €804 billion. "It manages about €400 billion in investments for Japanese clients. Its business in London mainly works as an asset manager investing in bonds, securities, private equity and real estate," said the newspaper."Under the terms of the withdrawal agreement and accompanying political declaration on the future relationship, firms in the City of London will lose their 'passporting rights', which allow them to offer services across the EU from London."Relocate’s new Global Mobility Toolkit provides free information, practical advice and support for HR, global mobility managers and global teams operating overseas.Global Mobility Toolkit download factsheets resource centreAccess hundreds of global services and suppliers in our Online DirectoryClick to get to the Relocate Global Online DirectorySubscribe to Relocate Extra, our monthly newsletter, to get all of the international assignments and global mobility news.

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