Published by Asia Asset Management – 25th Mar 2019
Singapore-based Eastspring Investments, the Asian investment management arm of UK insurer Prudential plc, is laying off staff after a “challenging” 2018, according to people familiar with the matter, and confirmed by the firm.
A spokesperson for Eastspring says the company could not provide the exact number of employees who are being let go.
But sources say most of the layoffs are in Singapore and Hong Kong, and amount to less than 5% of the company’s total head count, which includes around 250 investment professionals.
Eastspring “is making some reductions in workforce numbers to reflect our changing requirements”, the spokesperson tells Asia Asset Management. “The reductions are in line with what is needed by the business at this time.”
The decision to cut staff was not one that was “taken lightly”, the spokesperson says. “However, a staffing adjustment is necessary at this time.”
Other asset managers in Asia have also laid off employees after financial markets were battered last year by the US-China trade war, rising US interest rates and slowing economic growth, taking a toll on their profits.
Hong Kong’s Value Partners Group, for example, cut “a small number” of staff in January after net profits plunged 89% year-on-year to HK$229.5 million (US$29.4 million) in 2018. A spokesperson for Value Partners declined to provide the exact number of employees laid off.
“Overall, the market in 2018 was challenging. Across the board, asset management firms are facing rising costs and lower fee revenue. We have been reviewing all areas of our business to determine which initiatives and activities should be prioritised in the current operating environment,” the Eastpsring spokesperson says. “As we have embarked on an upgrade of our systems and processes, it’s natural that our workforce would evolve to meet the future needs of our organisation.”
According to the spokesperson, Eastspring is in a “strong position relative to our competitors”.
“Asia remained the key contributor to the Prudential Group’s 2018 result. We will continue to invest in high-priority initiatives that we believe will drive growth and allow us to capitalise on opportunities, whilst looking at ways to reduce costs and increase efficiency,” the spokesperson adds.
Eastspring Investments had $193 billion of assets under management at the end of 2018.
