Still being hired on Buyside for 250,000 euros
The bad news hardly stops: falling share prices, the US trade dispute and a gloomy economy. Last year alone, the DAX fell by 18% to 10,559 points. This should also mean an end to the fund industry’s cash flow, as lower assets mean lower management fees and less money for new hires. Actually.
However, according to headhunters, the asset management industry is still in recruitment mode. “So far, we haven’t seen any reduction in new hires,” assures Manuel Rehwald, a recruitment consultant specializing in asset management from Rehwald Associates in Königstein im Taunus. “Asset managers are continuing to recruit in sales and portfolio management.”
“So far, we have not seen a reduction in hiring in asset management,” confirms headhunter Patrick Riske from Fricke Finance & Legal in Frankfurt. “The sector is much more long-term oriented than investment banking. Just because share prices fall by 20 percent for a few months doesn’t mean that the long-term strategy is thrown overboard.” If, on the other hand, things go downhill permanently, asset management will also have to rethink. However, the industry has not yet reached this point.
Some players, such as Schroders, are even expanding their portfolio management in Frankfurt. For example, the Americans have applied for a portfolio management license and hired Ingmar Przewlocka. There are also new entrants to the market, says Rehwald. However, unlike in investment banking, asset managers are hardly creating any new structures in Frankfurt due to Brexit. Occasionally, branches are being established in Frankfurt or other German locations in order to secure a presence on the European mainland. However, investment management is often increasingly being set up in Luxembourg. However, this often concerns middle office, back office and compliance functions.
“I don’t see asset managers increasing their recruitment because of Brexit,” says Riske. “They are all still waiting to see what comes out of the negotiations.” However, Riske does not want to rule out the possibility of foreign companies being forced to set up structures within the EU at some point in order to obtain a distribution license. “The topic is being addressed, but I don’t see much happening so far.”
According to Rehwald, asset managers are currently primarily looking for institutional sales experts with a focus on alternative investments, real estate, private debt and private equity. In view of the low interest rates, institutional investors are still looking for potential returns in alternative investments. “In the wholesale business, employees with experience in multi-asset sales are particularly sought after,” adds Rehwald. According to Rehwald, employees with a fixed income or multi-asset background are particularly sought after in portfolio management. “However, special topics also play a role time and again. Recently, for example, I was looking for a portfolio manager for European small and mid caps.”
“The trend towards multi-asset strategies is coming to an end,” says Riske. Sales experts for alternative investments are still in demand. “However, there are no completely new trends,” says Riske. One exception is the topic of sustainability. More and more institutional investors are committed to this topic and are asking for corresponding funds. The topic could receive a boost if it were to reach retail sales, but this is not yet the case. Sales experts and portfolio managers with experience in sustainable investments are therefore in demand. “However, we are talking about a manageable number of people,” Riske concludes.
Manuel Rehwald
Managing Director, Rehwald Associates GmbH
