Asset management companies favor experienced profiles [Option Finance]

While large companies tend to favor internal mobility, smaller firms continue to recruit. They primarily hire managers and sales representatives with specialized expertise, possessing experience and a network of contacts.

In 2019, asset management companies benefited from a relatively favorable environment for recruitment. “Last year, we continued to be contacted by several asset management companies looking to expand or launch new activities,” confirms Corinne Oremus, Deputy Managing Director of Vendôme Associés. “ The job market was therefore quite dynamic.” A view shared by many recruitment firms. “2019 was a positive year for asset management companies that are compensated based on assets under management; they were thus able to increase their staff,” adds Harold Valat , Partner at Vauban Executive Search . And for this year, specialists expect the same momentum. “Recruitment should follow the same trends at the beginning of 2020 ,” continues Corinne Oremus.

This favorable environment, however, does not apply to all asset management companies. The job market is relatively segmented between very large asset management firms and medium-sized and small structures. The former are engaged in restructuring and cost-cutting issues, sometimes even through redundancy plans. This was the case, for example, in 2019 for BNP Paribas Asset Management, as well as for Ostrum, a subsidiary of Natixis Investment Managers, and Axa Investment Managers (IM) in 2018. These players are therefore prioritizing internal mobility over external recruitment. "Large firms, very focused on optimizing their results and retaining their talent, favor internal mobility and have opened fewer positions to external recruitment than medium-sized and small firms ," confirms Corinne Oremus. The latter face another challenge: in a context of margin compression and the growth of passive management, they must offer high-conviction products and/or products in diversification asset classes in order to differentiate themselves from the larger firms. They therefore need to invest.

Specialists in the field of alternative approaches in the broadest sense

It is these small and medium-sized players that provide recruitment agencies with the bulk of their assignments. These assignments are primarily focused on two types of roles: portfolio managers and analysts/managers on the one hand, and sales professionals on the other. In each case, the profiles sought are experts in their respective fields. "The requests are for very specific profiles," notes Corinne Oremus. "Small and medium-sized asset management companies are looking for equity managers, but also experts in debt, high yield, or alternative investments." Another highly sought-after specialty is real estate. "Asset management companies that offer OPCIs (real estate collective investment schemes) and SCPIs (real estate investment trusts) are experiencing very favorable growth in terms of fundraising and are recruiting specialists, particularly asset managers ," emphasizes Harold Valat . Finally, recruitment also includes managers and analysts specializing in socially responsible investing (SRI) and impact investing. “According to asset management firms, SRI and impact investing, like infrastructure, represent markets of the future that they want to capitalize on,” says Harold Valat . Beyond technical skills, these players favor candidates capable of bringing in clients. “Companies are looking for managers who can bring in a certain volume of business,” notes Harold Valat .

From this perspective, sales positions are just as strategic. Here again, experienced profiles are preferred, for their experience and especially their network. Recruitment firms are given very specific requests in this area. “Our clients pay close attention to in-depth knowledge of the relevant client segment and its development,” explains Corinne Oremus. “It’s also about selecting candidates who demonstrate curiosity and intellectual agility.” Indeed, in a highly competitive environment, it's important to move beyond traditional solutions, interact with other departments within the asset management company, and be able to propose and sometimes persuade others to invest in more innovative funds. And salaries reflect this. "Some sales positions are open for recruitment at salary levels that exceed those of portfolio managers and correspond to general management positions," emphasizes Harold Valat . "With bonuses, the salaries offered can reach up to €300,000, compared to between €100,000 and €200,000 for portfolio managers." On the other hand, the focus on strengthening support functions is no longer on expansion. "For several years, asset management companies have been developing support functions, particularly those dedicated to risk and compliance," recalls Corinne Oremus. " Recruitment in these areas tends to stabilize, as the teams are now established." Conversely, profiles that can improve operational efficiency and customer experience, which implies a strong grasp of data, remain highly sought after.

These developments are logically not favorable to recent graduates. "Asset management companies are no longer recruiting recent graduates or junior profiles," notes Odile Couvert, partner at Amadeo Executive Search. " These young people are finding it difficult to secure an internship or their first job in this sector and are instead turning to other types of work. Moreover, they are increasingly less attracted to the banking and financial world and are gravitating more towards new technologies and fintechs ." This trend will ultimately impact the age distribution of the asset management workforce, as well as the dynamism and capacity for innovation within this industry.