The world’s second-biggest fund manager has snubbed the EU with plans to open its second UK office, a move that will create 100 jobs.
Vanguard, which manages $7.5 trillion (£6 trillion) globally, is to announce plans for a new office in Manchester, according to City sources. The US fund manager will lease 14,000 square feet in the Landmark development in St Peter’s Square.
The move is expected to generate around 100 new jobs, increasing Vanguard’s footprint in the UK to 900 people. The company employs 20,000 people globally.
But on the Continent, Vanguard has a comparatively small footprint with just 200 members of staff.
EU countries have sought to take advantage of Brexit by encouraging multinational financial companies to grow on the Continent rather than the UK.
Meanwhile, a rise in hybrid working since the pandemic has led to many large financial institutions reducing – rather than increasing – their office space.
Vanguard employs a hybrid working model for much of its workforce. Staff come into the office on Tuesday, Wednesday, and Thursday and work from home on Monday and Friday.
A recent report by accountancy PwC estimated that UK employers will reduce their office size by 9 millions square feet over the coming years. One in three bosses surveyed expected their office footprint to reduce their office footprint by more than 30pc.