Goldman Sachs has scaled down its prime brokerage business in Japan, shifting some functions to Hong Kong, Reuters reported, citing sources with knowledge of move.
Japans prolonged deflation and a slump in the countrys stock market mean that the Japanese hedge fund industry is struggling to attract investments into those funds.
The Reuters report cited figures from the May AsiaHedge survey, which said Goldman Sachs is Japans biggest prime broker, with 17 mandates and AUM totaling $2.7 billion.
The report added that in May Goldman moved its Japanese stock loan desk from Tokyo to Hong Kong, integrating it with a desk handling such loans for other Asian stocks.
Staff from the Tokyo stock loan desk were assigned to the prime brokerage team in Hong Kong, which focuses on providing services in loaning stocks, Reuters reported, citing the sources.
According to the report, the sources added that Toru Okabe, the head of the prime brokerage business in Japan, will leave Goldman at the end of July.
(JDC)