After two GFC-hit years of negative returns, investment managers are back in the black, yet it doesn’t appear that this success is translating into significant additional recruitment.

According to the latest Mercer Investment Manager Performance Survey for the 2009/2010 tax year, fund managers generated a cumulative return of 13.1 per cent.

“The average active manager did better than this, marginally outperforming the market during the year by 0.5 per cent, not quite covering the cost of their fees,” says David Carruthers, principal of Mercer.

Clearly fee generation is critical to recruitment and John Coles, CEO, Executive Group International, confirms the majority of fund managers aren’t actually hiring. “They’re replacing key staff who leave, but they’re not expanding,” he adds.

A combination of work experience and a university degree – such as a bachelor of economics, commerce or business – are essential, while a CFA is almost mandatory. Actuarial studies are also common among high flying fund managers. In some cases, candidates are recruited for trainee roles direct from university, while other fund managers start in stock broking where they learn how to analyse companies.

“The results from our recent remuneration review show that asset managers with over 10 years’ experience earn between $150k and $550k,” says Coles, who adds bonuses start at 25 per cent, but can be as much as 100 per cent in some cases.

Another Sydney-based recruiter says the fund management sector in Australia is relatively mature and as a result there has been minimal hiring, although firms will fill critical vacancies or up skill where necessary.

“Portfolio managers, strategists and BDMs are replaced from time to time, but only where someone significantly better is available who will bring more dollars through the door,” says Luke Heath, chief executive of Chandler Heath Executive Recruitment.

Job opportunities can also be created by retirements, overseas promotions or when a fund manager is lured away to a more lucrative sell-side role, according to Heath.