Some market participants anticipate that client demand for multi-manager offerings could double to A$170 billion over the next five years. Consequently, this expected demand has resulted in a rise in job opportunities within the multi-manager arena.
Working in a fund of funds research team as an analyst or portfolio manger differs to working in a traditional equities research team. In general, a portfolio manager in a traditional business would have worked as an equities analyst and then learnt about portfolio construction from either the buy-side or the sell-side.
Conversely, a fund of funds portfolio manager generally has an asset consulting or research house background and is more accustomed to look at process rather than individual stocks. “Interestingly though,” says Susan Moore from recruitment firm Jon Michel, “you do see asset consultants in Australia who have actually run money offshore and who have gone into consulting to get some local market experience.”
Someone with this type of experience could be suited to either being a traditional research analyst or an investment manager selection analyst.
Where experience varies however, is in the hedge fund space. Moore notes that due to hedge funds being more complex, candidates usually have a broader skill set. “Having said this, there is a difference between fund of fund hedge funds that do their own manager selection, and those who work through international aggregators” says Moore.
Owing to different skill sets, salaries also differ. she says: “Although there has been some upward pressure regarding salaries for multi-manager research roles, traditional analysts/portfolio managers are still able to attract higher salaries.”
Investment manager research analysts can earn between A$80,000 and A$150,000 plus bonus. Traditional analysts can command salary packages of between A$80,000 and A$250,000 plus bonus.