Allied Irish Banks's AIB Govett (Asia) said today it may shut its two mutual funds in Singapore to focus on institutional clients as itgrapples with the departure of key staff.
AIB's move reflects the growing cost pressures faced byforeign money managers in Singapore's tiny but crowded $9.5billion retail funds market and follows the recentrestructuring of operations at Britain's Morley Fund Management and Anglo-US Amvescap 's INVESCO Asset Management.
"The firm is examining the future of the Govett Global Brands fund as well as the Asia-Pacific Growth fund," said Mr Tan Choon Hoe, senior fund manager and spokesman for AIB Govett, which manages about US$800 million.
Another stumbling block for firms is that distributionmuscle is with local banks, who are also competitors.
AIB Govett, which shifted the management of $400 million ofJapanese assets from Dublin to Singapore two years ago, is also on the hunt for a new chief executive following the departure of former CEO Mr Kim Teo three months ago.
Chief investment officer Mr Christian Dangerfield has also quit to join Foreign & Colonial and fund manager Mr Tan Eng Teck has resigned.
The AIB spokesman confirmed the departures but said thefirm has hired a new fund manager to cover Japan equities and other markets like Thailand.