Fund managers use 'fresh pot of money' to return to full-time hiring
The asset management industry has returned to the hiring of full-time staff – having got by on using short-term contracts for a year – as improved profitability boosted confidence to make longer term commitments, an investment management consultant has said.
Asset managers have become cautiously optimistic since September and have started to become more relaxed about recruitment thanks to climbing equity prices and overall improved profitability, according to Investit People, the recruitment arm of investment management consultant Investit.
Alex Hindoian, senior recruitment specialist at Investit People, said: “Fund management groups have just gone through budget season and they now have a fresh pot of money to spend. Projects are being signed off, and what we are witnessing is that firms are asking us to find full-time staff instead of workers on three month contracts.
"This was not the case for most of this past year. There was a sharp slowdown in recruitment volumes from September 2008 to July/August 2009, with many in the industry only willing to spend what was absolutely necessary. They did not want to make any long-term commitments and offering a six month contract was seen as a push.”
In July, Financial News reported that some of Europe’s best asset managers are leaving their employers to seek fresh opportunities. The trend continued with 40 portfolio managers reported to have changed employers within the following 47 working days.
According to Investit, the hottest areas for recruitment are in the middle office, particularly performance attribution, client reporting and servicing, and operational risk. This reflects the expectation of increased regulation, with the European Union debating a proposed directive on alternative investment fund managers that will affect many mainstream managers as well, and the US requiring registration of hedge fund managers.
Investit said it has also found interest in hiring senior business analysts for the front office and fund accountants for the back office.
-- Write to William Hutchings at whutchings@efinancialnews.com
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