ASSET MANAGEMENT

The asset management industry has witnessed major changes in the last few years, but the sector is looking remarkably healthy as overall profit margins have held fairly stable over the past market cycles. In the US there is increased demand for distribution and sales talent while demand for portfolio managers and analysts has remained very specialized and sector specific.  Demand for experienced investment talent remains high in asset allocation and absolute return strategies, whilst there has been a recent slowdown in the previously active Emerging Markets space as a result of poor performance and the attendant investment outflows.  Investors’ needs have changed, driven on the retail front by the looming retirement of the biggest demographic wave in global history, and on the institutional side by a combination of worsening pension deficits and a significantly different approach to evaluating and paying for performance.  Traditional asset managers continue to diversify their product range and hedge fund offerings run the gamut of long only and L/S products featuring strategies from the simple to the sophisticated and complex.

As the sales process becomes more institutionalized, the marketing and client service capabilities of asset managers will be essential.  While investment performance is obviously important, those firms who can offer superior client service, investment advice, and solutions will be the real winners going forward.

In our view the coming year presents the best opportunity to hire talent.  This environment is ripe for building both investment teams and distribution professionals, and recruiting seasoned individuals in prominent roles.  Individuals who weathered the turmoil of the past twenty-four months are now beginning to explore new opportunities with organizations who have strong cultures, good performance and offer diversified platforms.