Edinburgh draws in Londoners

For London-based asset managers stuck on packed commuter trains on dark winter's mornings, emigrating to Edinburgh may seem distinctly appealing. Early hours in the Scottish capital are equally black, but thanks to Edinburgh's spatial compactness, long (and crowded) commutes are rare.

Willie Watt, chief executive of Martin Currie, the boutique investment manager, is among those benefiting from the pleasant environment. "One of the great things about living and working in Edinburgh is that home is never too far from the office," he says.

Londoners appear keen to partake of Edinburgh's delights. Watt says Martin Currie hired six senior fund managers from London this year; all cited quality of life in Scotland as a significant factor behind the move. "Most of our hires are people with small kids who can't hack the Northern Line any more," he says.

The July terrorist attacks on London are lending impetus to the shift. In this year's quality of life study from Mercer Human Resource Consulting, London came 99th among cities globally for personal safety. Edinburgh wasn't ranked, but Glasgow came in at 39. "Terrorism is a manifestation of London's deteriorating urban environment," says one Edinburgh-based employee. "But it isn't the pre-eminent reason for making the move."

According to David Bond, managing director of Edinburgh headhunter Cairns Bond, the preeminent reason has more to do with the sporting opportunities afforded by Edinburgh's location: "It's about being able to visit golf courses at the weekend, and driving a few hours to go skiing in the winter," he says.

Rebecca Austin, co-head of asset management recruitment at London-based headhunter Principal Search, says Edinburgh headhunters are eager to tap the London talent pool: "Clients like the idea of a headline saying they've hired a senior person from the London market."

In other cases, Austin says London hires are obligatory because Edinburgh's own firms have 'hands-off' agreements preventing their poaching staff from one another.

Pay on par

Intermingling between the London and Edinburgh has prompted a convergence in pay levels between the two cities. "Clients here benchmark pay in the London market," says David Hill, head of financial services at Edinburgh recruiter Darwin Rhodes. "They are very aware that to attract top talent, they need to pay the necessary amount." He says six figure base salaries for fund managers with five years' experience are eminently achievable.

Austin says an Edinburgh-based fund manager with between five and seven years' experience can expect to earn a base salary of between 60,000 and 100,000, plus a 40% to 100% bonus, making packages similar those on offer in the London market.

Nevertheless, Austin says the flow of actual fund management talent into the city is more trickle than torrent, something she speculates may be down to the fact that people rarely move in the opposite direction. "Fund managers go to Scotland and very rarely then come back down to London, which is why it's usually seen a lifestyle decision," she says. "People see it as a step they can't go back on."

Maybe Edinburgh could benefit from a few crowded commuter trains to encourage fund managers to relinquish its charms a little more often.