A steady stream of replacement recruitment has kept the employment market alive in funds management this year.

Simone Mears, director, Profusion Group, describes hiring in 2010 as “solid, but not strong.”

Luke Heath, chief executive, Chandler Heath Executive Recruitment comments: “Australian funds under management are growing, but the investment industry is very mature. And funds management is very scalable: you can usually manage a lot more money without adding front-office headcount.”

Most of the current recruitment is not new growth, but still stems from back-filling gaps created during the downturn, says David Barr, director of banking and financial services, Robert Walters.

“Most vacancies have been because of an internal transfer or departure to another firm. Total headcount growth has been limited,” agrees Heath.

Candidates

But while roles have not been as plentiful as they would have liked, candidates are at least more confident about jumping ship than they were last year.

“There has been little movement since mid to late 2008. As a result there is a pent-up demand for new roles as people are seeking a range of things such as a new challenge, increased accountability, career progression, an increase in remuneration etc,” says Mears.

Barr adds: “The majority of people moving roles during the last two quarters of 2010 have been moving to take on bigger jobs with more or different responsibilities.”

Client-facing roles are most sought after as firms look to rebuild their market share via “better service and product offerings to clients,” says Barr.

“BDMs with strong relationships, fixed-income managers with a track record of generating alpha, and credit analysts have been in demand. Offshore experience has been well regarded, especially experience in Asia,” says Heath.

And which firms have been shaking up the hiring market of late? “BT has had a lot of movement in and out. An AMP/Axa merger might put a few people out of a job,” comments one headhunter, who asked not to be named.

“Large domestics are hiring and we are starting to see some interest from large offshore groups looking at starting up here because of the success of the Australian economy,” remarks another anonymous recruiter.

2011

Despite the threat of some role-duplication redundancies if the AMP/Axa bid for Axa Asia Pacific is successful, overall predictions for funds management hiring in 2011 are optimistic.

· Barr: “The outlook is positive as companies strive to achieve their growth objectives through effective sales channels and better and more efficient back offices.”

· Heath: “Hiring will again be focussed upon critical hires emanating from internal transfers and departures.”

· Mears: “Along similar lines to 2010: solid with a few hiring peaks.”