36 people lose their jobs
Recent hedge fund industry job losses
Bank of NY Mellon Alternative Investment Services made 20 accounting positions redundant in what it said was a “consolidation of its accounting functions” (January 2012)
Jupiter Asset Management closes its office after more than 40 years in Bermuda axing 11 jobs (January 2012)
Citco Fund Services cut 15 to 20 jobs in what the company said was a “reorganisation” of its Bermuda office (October 2011)
Citi Hedge Fund Services relocated 105 jobs from Bermuda to North America in the biggest publicly revealed jobs blow of the year (September 2011)
CACEIS Investor Services (Bermuda) Ltd reported that the company moved the majority of its staff out of Bermuda; number of job losses is unknown.
In January 2012, hedge fund Butterfield Fulcrum Group (BFG), said it was in the process of hiring 12 new employees having signed up 36 new clients in January.
More than 35 jobs were lost yesterday as two international companies announced a consolidation of their business and a charity said it had been hit by the continuing recession.
As exclusively reported on www.royalgazette.com yesterday, hedge fund manager, Jupiter Asset Management (Bermuda) Limited, announced it was closing its Bermuda office axing 11 positions, and hedge fund administrator, Bank of New York Mellon Alternative Investment Services, said it was making 20 accounting positions redundant.
The Bermuda Zoological Society also announced it will lay off three full-time and two part-time positions as a cost-cutting measure due to the struggling economy.
After more than 40 years in Bermuda, Jupiter is closing its doors in January letting go all 11 employees, eight of whom are Bermudian.
According to the company, one Bermudian subcontractor may have the opportunity to transfer to London full time.
Managing Director Garth Lorimer-Turner said the office closure was due to a change in the global company's business focus.
“Jupiter's decision should not be regarded as reflecting negatively on Bermuda,” said Mr Lorimer-Turner. “Jupiter has always maintained very good relationships with both the relevant Bermuda authorities and local service providers and used Bermuda regularly as a jurisdiction for many of its investment funds and products in the past.
“Unfortunately, Jupiter's hedge fund assets have fallen substantially. The decision to close the Bermuda operations is a commercial one driven by its decision to focus resources on Jupiter's traditional markets in the UK and Europe.”
Jupiter suffered a net outflow of £225 million in the final three months of 2011 as it took the decision to close its Bermuda-based hedge operation.
The outflow reduced its overall net inflow for 2011 to £746 million. The closure will result in a charge of around £1 million in its 2011 numbers.
Last night a Jupiter insider said the move did not come as a surprise saying they understood the company's London executives had been looking to close the Bermuda office, following closures of their Hong Kong office several years ago and then its office in Jersey.
Over the past two years, the firm also cut staff in their London office.
Jupiter opened in Bermuda in 1969 and became a part of the Jupiter Group in 1991. Actress Helena Bonham Carter's brother, Edward, is Jupiter's CEO.
Of the 20 positions being axed at BNY Mellon's Bermuda office 12 are Bermudians. It will leave a staff of 39 at its Front Street office.
According to a company spokesperson, Bank of New York Mellon acquired PNC Bank's global investment services business in July 2010 and as a result “accounting functions have been consolidated” to their Orlando, Florida office.
Asked if the company was looking to close the office here in Bermuda, the spokesperson said: “We are not closing our office in Bermuda and continue to have more than three dozen employees providing valuable services to our clients.”
Last night Minister of the Economy, Patrice Minors, said: “It is regrettable, particularly in these tough economic times, to see anyone lose their job. I can confirm that the Ministry stands ready and prepared to assist where ever possible.
“The Acting Director of Labour and Training, George Outerbridge is spearheading a coordinated effort to ensure that all employees affected by the redundancies register with the Department of Labour and Training. Simply put, the Government remains committed to lending support to all those affected by this unfortunate development.”
Richard Winchell, executive director of the Association of Bermuda International Companies (ABIC) said: “ABIC is aware that the cost challenges of operating in Bermuda if your business model relies on fees.
“It is quite different and perhaps more challenging than if your business model depends on insurance or reinsurance premiums.
“Bermudians, businesses and Government must be as accommodating, efficient, cost effective and friendly as possible at every possible touch point with international business.
“Many people and institutions already do so. However, the entire Island needs to think of international business as our personal clients because those organisations are the source of foreign revenue and indirectly pay virtually all of our bills regardless of who you may be.”
Bermuda Zoological Society, announced it will lay off three full-time and two part-time positions due to the struggling economy.
“We are sad to have to resort to laying off valued staff, but this is entirely due to the state of the economy and is no reflection on these employees or their performance,” said Dr Ian Walker, a BZS executive member and principal curator of BAMZ, for which BZS provides funding, volunteers and support staff.
Dr Walker noted that BZS had weathered the global recession until now by reducing operating budgets and absorbing financial losses, while resisting staff cuts for as long as possible.
“But there comes a time when, to be a fiscally responsible organisation, we have to draw a line in the sand and make tough but necessary decisions.”
As a result of the announcement, the BZS Gift Shop will be open only on Saturdays and Sundays, and closed weekdays. Dr Walker added that no capital projects, BAMZ staff positions, or BZS conservation-education programmes would be compromised.
“BZS continues to be a financially viable organisation that is committed to helping the community and we thank our donors for their confidence in BZS and their continued support,” he said.
Meanwhile, business Development and Tourism Minister Wayne Furbert is heading to the US to try to drum up more hedge fund business for Bermuda.
He told a press round-table meeting yesterday that he and Travis Gilbert, his Ministry's director of international business, would visit New York and Washington to “bring the opportunity of new hedge funds to Bermuda”.
He said his Ministry was making a “frontal attack on moving and bringing more hedge funds here on the Island”.
Asked about yesterday's job losses at Jupiter and Bank of New York Mellon's Bermuda office, Mr Furbert said: “Business models have changed and also what has normally been the case for certain businesses to be operating in Bermuda, the model has changed.
“It's probably taken a little longer time for them to make some decisions.”
Premier and Finance Minister Paula Cox said it was critical when there were job losses for there to be “concentrated and concerted efforts to be able to seek to provide added impetus for business to come to Bermuda”.
She added: “That's why it's critically important that we don't just cry in our sleep. People who have lost jobs, what do they need, besides a new job, and it may not be a dream job.
“They need a sense of hope and they need to know that the Government is working for them, not just by words but by action.”