Who’d have guessed??
Wealth Bulletin: More asset managers are hiring than are firing staff, according to new research, despite the downturn in markets and investor confidence that has led many in the fund management industry to start cutting costs.
FS Associates, a US management consulting firm focused on financial services, said a survey of 70 asset managers it conducted in the first week of November showed that, although about 20% of respondents have cut staff or expect to cut staff, 25% plan to add staff. The proportion of US asset management companies that are hiring is more than 25%.
The findings contrast job cuts, announced or being considered, at asset managers Schroders, Henderson Global Investors, Legg Mason and Fidelity Investments. Asset management companies’ profits have come under pressure because of falls in the value of assets under management, on which they charge management fees.
Nina Gilbert, founding partner of Fisher Barrie, a UK recruitment firm specialising in the asset management industry, said: “Recruitment is still solid on the institutional side, though it is more to do with firming existing platforms and it is not growing as quickly as it was 12 months ago.
“On the retail side, including multi-manager, there is movement, but people are not looking to do anything particularly ambitious this quarter or next. Continental European clients are more hesitant than their UK counterparts.”
…FS Associates’ survey, which was worldwide and covered large, globally-orientated firms and smaller, niche managers, also found that about 75% of respondents believed they would emerge from the market turmoil in a better competitive position than before, and about half of them saw client inflows running ahead of outflows. Less than 20% reported client inflow drying up completely.
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