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Funds Management
1. How is the current recruitment environment?
The market has been patchy with demand in pockets of the industry, predominantly on the institutional distribution side where quality candidates with proven track records in successfully raising capital well sought after.
There is talk of “critical hires” only with sign off required at the highest level within the global funds, so definitely more caution around the hiring front as we head into the 2012 planning cycle.2. Any trends observed in the last 12 months?
A continuing trend and theme has been the demand for Capital Raising executives as both global and local funds continue to target Australia's $1.2 trillion of superannuation savings.
Volatility and uncertain markets has seen demand creep back into the Fixed Income space with more emphasis on active / macro style capability.
There has been select hiring within the infrastructure fund teams. Equity and property funds have seen little hiring for the past 3 years.
Consolidation within the Industry super funds space continues.
FOFA and a conservative retail investor mindset continue to see limited flow to any asset class which has translated to a very quiet retail distribution market.3. Any views on the next 12 months?
The continued uncertainty and volatility will play a key part in the next 12 months with emerging markets, fixed income and possibly absolute return funds remaining a focus of institutional investors.
We believe the number of new global funds entrants into Australia will remain high translating to a continued demand in the institutional capital raising space. Global players offering top quartile product capability in emerging markets, fixed income and the alternatives space.
The lag affect in the asset allocation process on the retail side is generally circa 18 months but due to the ultra conservative nature of retail investors has dragged on for over 2 years. However we believe that there is potential life in the retail market as the cash dam continues to build and investors start to seek greater returns in a potentially lower interest rate environment. More clarity around FOFA and European markets may be the spark to see demand return in the retail distribution space in 2012.
Industry super fund consolidation leading to larger FUM and economies of scale may see demand for stronger investment staff bench strength.4. Any particular interesting observations or case studies seen recently?
Emerging markets and Asia are still top of the list topics in most circles.
Industry fund consolidation likely to ramp up even further in 2012.
Further consolidation of retail distribution platforms and adviser/dealer networks as the major players continue to build scale.