Tuesday, 22 July 2014
Last updated 5 hours ago
May 20 2009 | 9:15am ET
Asia’s largest hedge fund manager lost ¥23.3 billion (US$242 million) in the year ended March 31, as revenue fell more than 70% and assets under management dropped more than 40%.
The Tokyo-based firm had posted a ¥3.2 billion (US$33.2 million) profit in the fiscal year ended March 2008. But its assets under management have plummeted to ¥674 billion (US$7 billion) from ¥2 trillion (US$20.8 billion) less than three years ago. Management fees fell along with Sparx’s asset level, dropping 38% in the fiscal year to ¥9.75 billion yen (US$101.3 million), while performance fees collapsed, falling 82% to ¥2.32 billion (US$24.1 million), due to poor performance.
All told, revenue fell 76% to ¥7.3 billion (US$75.8 million), down from ¥30.6 billion (US$317.8 million) in fiscal 2007.
Sparx has announced big cost cuts in an effort to combat its declining fortunes, closing its London office and slashing its U.S. business. It also cut executive pay and asked 20 employees to retire. All told, the cuts will save ¥2.5 billion (US$26 million) per year.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…