Monday, April 10, 2006

Asia-based firms flourish as investors seek location advantage

According to Financial Times, super-fast broadband connections and cutting-edge financial technology is helping to shrink the world of investing. But still, when it comes to Asia-focused hedge funds, there is little sign that location has ceased to matter.

Five years ago, London and New York were the undisputed capitals of Asia-focused hedge funds, with the two cities accounting for the bulk of total Asian hedge fund assets under management.

Since then, regional financial centres such as Hong Kong and Singapore have seen a flurry of hedge fund start-ups - a trend that is expected to continue as many investors try to be as close as possible to high-growth economies such as China and India.

As globalization and free trade pick up momentum across the Asian region, the traditional economic powerhouses are making suitable adjustments and positioning themselves in the Asian Region.

Singapore is a lifestyle choice for hedge fund managers who want clean air, low taxes and a nice house with a pool," says one Hong Kong-based prime broker.

No comments: