8p selby jennings fund management asia

APRIL 2014 M A R K E T U P DAT E F U N D M A N AG E M E N T - A S I A

INTRODUCTION As part of our commitment to provide our clients with regular, up to date, industry specific market intelligence, we are delighted to present Selby Jennings’ April Market Update for Funds Management within Asia.

SIGNIFIC ANT RECRUITMENT DEVELOPMENTS The Fixed Income markets in Asia are still developing at a very fast pace and therefore the market for talent is still strong. The challenge is predicting which specific sectors and geographies will be developing over the medium term as the regulatory environment changes, and requirements for different skill-sets emerge. This is specifically prevalent within the Chinese market where both Economic reforms and ever changing business needs require fastpaced reaction to keep up.

HIGH GROWTH HIRING AREAS ACROSS MARKETS / PRODUCTS The markets which saw the highest amount of hiring in Q1 were China and South East Asia High Yield.

GEOGRAPHIC AL HIRING TRENDS HK and Singapore both had strong hiring within the Fixed Income markets. Singapore, as the traditional hub for Fixed Income teams

(with HK being more Equity focused), has seen growth for both ASEAN and HK/China coverage, but as both Global and Local Fund Management firms develop their capabilities in Asia, both locations have strong needs for talent with regional expertise.

HIGH DEMAND SKILL SETS/ EXPERIENCE Looking at the requirement for buyside firms, a candidate’s ability to formulate investment decisions based on proprietary research and sound financial modelling is still the key skill-set. Analysts reliant on Broker information are always 2nd best as the market becomes more saturated in Asia and Fund Managers inherently seek unique trade ideas.

Local market experience in Asia Fixed Income products would be the 2nd most important skill-set. This is because the market is expanding so quickly, and people are reluctant to allow candidates the 6 month – 1 year transition period required to familiarise themselves with the products when there is a wealth of talent on their door-step.

ROLES IN HIGH DEMAND Senior Analysts are still the most sought-after talent in the market.

This is because most of the large Asset Managers and Hedge Funds have been successful in retaining high quality Portfolio Managers.

The caveat is that there are some very strong Analysts in firms who are desperate to begin running their own Portfolio and are open

to move to less prestigious organisations to achieve this goal.There are a number of funds looking to expand their Assets in the region which will in turn, develop a need for more Portfolio Managers.

This is likely to be a key area of growth in late 2014 and early 2015.

SENIORITY LEVELS IN HIGH DEMAND Candidates between Vice President and Director level (7-12 years experience) were in high demand for Q1, we see this continuing for Q2.

As most firms have reduced graduate recruitment since the Financial Crisis, there now appears to be large gaps in team structures between Associate and VP level. This level of experience is likely to become more in demand for the next 12 – 18 months.

HIRING FOREC AST FOR THE MARKET IN Q2 2014 The market for China Analysts will continue to be a strong area of recruitment; specifically within the High Yield and Distressed Debt area.

This will also be true of the South East Asia markets as continued Economic Development sees more companies requiring financing to expand their businesses, but will not achieve Investment Grade status due to the opacity in business practice and the unpredictable markets they operate in.

JOB SEEKER ADVICE If candidates are currently within Asia covering Fixed Income, the most important advice is to try to develop their analytical capabilities and market coverage as much as possible. Specialist knowledge of specific markets is also very important.

Clients always want to see a rounded view of the Asian Fixed Income space. Candidates located outside Asia are advised to try and gain exposure to the Asian markets; either through personal study or trying to transition to a team that works that region.

HIRING ADVICE Clients should be wary of analysts who possess broad market information rather than in-house fundamental research. Many candidates are found to lack the financial modelling skills for buyside roles when tested.

NOTEWORTHY MARKET TRENDS As Asia still has an underdeveloped Fixed Income market compared to the EU and US, there will be long term continued growth for these markets.

ABOUT SELBY JENNINGS

Operating as part of Phaidon International, Selby Jennings is a multi-award winning global recruitment organisation focused on servicing the financial industry.

By breaking down financial markets into individual niches and micro-specialisms, Selby Jennings powers a knowledge-led model, delivering global solutions into local markets.

Every consultant is an expert in their field. Structuring our teams to mirror the demands of our clients and candidates, we identify, qualify and present the highest calibre candidates, as well as identifying the best market opportunities for leading finance professionals. From our offices in London, Singapore, New York and Zurich we recruit beyond international boundaries, proactively sourcing the best talent in the industry across both contract and permanent hires.

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