New entrants from the US and Europe are fuelling demand for skilled fund managers in the Lion City.

Despite recent market turbulence, the long-term view is that funds in the asset management sector will continue to flow into Asia. This confidence has led to firms like DBS Asset Management saying it aims to double assets under management (AUM) to US$35bn in the next five years.

Local houses like DBS will have a battle to hire and retain skilled fund managers, however. “Local asset managers are adding numbers when they are introducing new sector or geographical coverage,” says Gary Lai, manager of front office banking and finance at Robert Walters. “What is having a bigger effect is hiring by discretionary portfolio management units within private banks and also from new European and US asset management companies shifting here and using Singapore as their Asian headquarters.

Swiss fund RMF Investment Management and Morley Fund Management are among those to have opened Singapore offices this year. Fidelity Investments, however, is cutting its Singapore office on Jan 1st and plans to shift its lone Singaporean fund manager to Hong Kong.

“Ultimately, Asia has a strong story and assets under management will continue to increase, so I can’t see demand for expertise diminishing,” adds Lai.

Demand for talent in Asia has traditionally centred on equity fund managers. However, Lai says fixed income managers who have performed well during the current credit market turmoil are increasingly sought after. There is insufficient local talent to satisfy this demand; which is good news for mangers in Australia, Europe and the US who fancy a stint in Singapore.

“A senior fixed income manager with 10 years experience on a non-expat package could easily gross between US$120K-$160K excluding bonus,” Lai says.