Funds & Assets Management Salary Survey & Employment Overview 2016
Funds & Assets Management Overview
2015 has been a busy and exciting year in the Funds and Asset Management space. We saw a large amount of new business hitting Irish shores with Investment Funds industry now being the single largest employer in the International Financial Services sector, with over 13,000 employees and 50 companies operating in this space. Dublin will continue to be the hub for the majority of operators.
2015 brought with it a number of key strategic mergers and acquisitions worth noting. We saw some global players in the Financial Services space refocusing their core business lines with the view to increasing profitability and moving from a generalist business to that of a more specialist focus. This strategy resulted in a number of global custodians selling their fund administration business. Examples of this include Citi Group selling their private equity and hedge business to SS&C Globe Op and MUFG acquiring UBS’s Alternative Fund Services group. Additionally, Santander Asset Management and Pioneer Investments joined forces combining Pioneer Investments and Santander Asset Management into a €353 billion Global Asset Management firm in Europe and Latin America. We expect to see more strategic alliances like this in the coming year.
As a result of the growth and activity in this sector, we saw many of the Administrators in Ireland increasing their headcount and building up their teams across the Fund Accounting, Transfer Agency, Client Relations and Financial Reporting teams. We have now entered a period where demand significantly outstrips supply for qualified candidates in this sector.
“As a result of the large amount of growth and activity in this sector, we saw many of the Fund Administrators in Ireland increasing their headcount and building up their teams”
Consequently, there were uplifts in salaries and benefits for this sector of Funds & Management professionals this year. Among the candidates surveyed, 65% received a salary increase in 2015. Work-life balance remains top on the list of priorities for candidates looking to move; candidates state that it is the primary reason for changing employers (after salary and benefits) according to our research.
Fund Accounting and Transfer Agency are the most competitive and in-demand skill sets in the sector, with our clients recruiting at all levels. During Q3 and Q4 of 2015 there was a surge in counter offers and the introduction of retention bonuses as the market for these candidates become aggressively competitive. Our research also reflected this with 69% of candidates in this sector receiving multiple job offers in 2015 and 24% of these candidates were countered by their own company in an attempt to retain them.
Middle Office and Collateral Management is an area of growth with Alternative Fund Administrators expanding their middle office offering to clients and Credit Suisse relocating prime service functions from London to Dublin.
Risk and Compliance continues to be an area of steady growth due to increased regulation, stronger regulatory oversight demands and the need for more robust controls. Candidates with AML, EMIR, AIFMD, VAR, MiFID and UCITS experience are in high demand in addition to Financial Reporting and Internal Audit professionals.
Recruitment levels in the Private Equity and Real Estate stabilised in Q4 of 2015 with organisations now having put their specialist teams in place. An interesting development in this market is our client’s preference for qualified accountants coming from a Practice background.
Portfolio Managers with a track record and Fixed Income, Fund of Fund, Equities, Structure Product and FX Product exposure have more options in the Dublin market compared to last year.
Project Managers and Business Analysts are highly sought after for on-boarding, migrations and transition projects with leading Fund Administrators as companies pursue growth strategies.
We expect the success of the industry in 2015 to continue well into 2016 with the onset of further expansion of the major players in the market, further strategic alliances and the addition of exciting new smaller players to the market. The increase in competition in this arena has made the market increasingly candidate driven – something that employers will have to take into account when differentiating themselves from their competitors in the coming year.