Employment Market Outlook For Investment Professionals

The current job climate remains very positive for investment professionals in the Melbourne financial services industry.

Demand is the strongest for junior investment analysts between two and five years’ experience. At this level, along with a strong passion for financial markets, most firms are increasingly wanting programming (such as SQL, R, Python) and financial modelling skills, accompanying strong academics with CFA being the most sought after post-graduate qualification.

Most firms, primarily large super funds, have some form of graduate recruitment intake program to develop analysts over the longer term. This is a trend that is likely to increase as competition for experienced, specialist investment skills intensifies.

At the senior end, asset class specialisation, in particular infrastructure and fixed income, is in most demand. There remains a viable talent pool of infrastructure professionals ready to transition from the big four infrastructure advisory teams.

Well-developed fixed income / credit skills remain harder to find although institutional banking professionals are transitioning. They are primarily driven by the relatively poorer culture at the banks and changes in lending conditions.

There is a constant push to achieve diversity of thought through gender and age within teams when recruiting investment professionals at all levels. Firms now have a strong focus on hiring more female investment professionals and are insisting on shortlists that have equal representation regarding gender. As a result, it remains a continuous challenge for recruitment teams and firms to attract and retain such talent.

Super Funds

Larger industry super funds will be recruiting in larger numbers as they bring investment management capability in-house. There will be increased demand for performance and reporting analyst, investment data and investment risk professionals too. In addition, there is an increase in demand for project management professionals who have experience working on data warehousing projects with investment teams.

Investment Research, Asset Consulting Firms

Investment research and asset consulting firms are constantly in the market recruiting, primarily for junior analysts. While they often struggle to compete on salaries, they remain a great development ground and most have a well-developed and structured career development program.

Fund Managers

Most well-run fund managers have observed good retention rates, subject to fund performance. Hiring is not as prevalent as it is for super funds and most hiring are driven by staff turnover.
Due to the increased internalisation by super funds, specifically in domestic equities, most equity fund managers have struggled to compete, and some have wound up as a result. The equities sector remains tough and there is no shortage of professionals within this asset class who are looking for opportunities. Sell-side professionals continue to seek opportunities to transition into the buy-side.
Increasingly, larger fund managers are also trying to hire senior investment professionals to transition into product, Investment specialist and sales positions.
Property / real estate / debt-based fund managers are growing rapidly and hiring banking professionals with specialist lending experience.

Key Themes Driving Demand

Industry super funds are actively recruiting and there will be a large head-count approval for the financial year ahead. As a result of progression and activity across the industry, firms are also having to backfill roles. Overall, recruitment activity is high and organisations need to work harder to define their employee value proposition (EVP) and career development plans to retain key staff members and attract top talent. While salary and bonus potential are important factors, organisational culture, training and career development are the determining factors for most candidates.

Kind Regards,

Matt McGilton – Managing Director

Kaizen Recruitment specialises financial services recruitment across funds management, wealth management, superannuation, investment consulting and insurance. We are based in Melbourne and Sydney. For assistance or further information please telephone our office at +61 3 9095 7157 or submit an online form.

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