Good job prospects in asset management
The increase in personnel in the German asset management industry is likely to continue in 2019. Specialists are primarily being sought in the areas of sales, portfolio management and compliance. There are also opportunities for managers, but less at country manager level.
The asset management industry in Germany continues to experience solid growth. After a significant slump at the end of 2018, the stock markets recovered in the first quarter. The leading index, the Dax-30, is currently scratching the 12,000 point mark and is thus back at the level it was at the beginning of October. Fund performance and thus the sales situation have also improved in the meantime.
However, there are still economic concerns on the markets because political risks such as Brexit and protectionism in global trade have not yet been overcome. Economists also expect a dip in growth for Germany and the eurozone in 2019. On the other hand, positive factors influencing the markets are the continued robust corporate profits and low interest rates – things are also expected to pick up again next year.
The bottom line is that stock market participants, and therefore also the local asset management industry, are expecting slightly positive markets in 2019. I would also describe the personnel situation at the companies as “slightly positive”. The expansion is likely to continue, particularly in the areas of sales and sales support, marketing and compliance. Portfolio managers are also still being sought, although no longer necessarily for traditional investment themes.
Let’s start with sales. Here, as a recruitment consultant, I continue to see a great demand for experienced employees. Asset managers not only expect candidates to know how to acquire clients in a particular segment, they also want their sales specialists to build up new client segments. Excellent client service – especially in difficult times – is also an important requirement.
More sales specialists in the company also need more support. Consequently, we are looking for sales support – e.g. product management – and marketing specialists. Candidates with extensive product knowledge or extensive experience in the world of digital media would have very good chances of joining the company.
Due to constantly increasing regulatory requirements in the financial world as a whole, candidates for the compliance departments of asset management companies are desperately sought. Depending on the size of the company, asset managers need generalists rather than specialists. This is not surprising when you consider the large number of regulatory issues for the industry. The European MiFID II Directive is an apt example of this.
Let’s take another look at the opportunities in portfolio management. There are also interesting career opportunities here. However, these are more limited in traditional areas such as equities or bonds. Some specialized asset managers are increasingly looking for specialists in alternative asset classes such as real estate, private equity and private debt. This trend is directly linked to the persistently low interest rates, as asset managers have to offer their institutional clients, such as pension funds and insurance companies, alternatives. Equities and bonds are also often not enough for reasons of diversification.
I would also like to briefly discuss the situation in the management area of asset managers. Although there are still opportunities here, these have become somewhat fewer at country head level. For example, new heads of Germany were already hired at some companies in 2018. In my experience, managers particularly appreciate companies where they can lead according to their own ideas. Typically, they are better able to provide their own impetus at smaller companies than at larger ones.
Conclusion: Asset management companies in Germany are primarily looking for employees with relevant expertise and professional experience to help them survive any difficult market phases and increasing regulation. On the other hand, jobs that do not require specialization and expertise are difficult.
Manuel Rehwald
Managing Director, Rehwald Associates GmbH
