Staff sought to hold corporates in check

A new survey suggests fund managers are preparing to stock up on corporate governance specialists.

The latest Morningstar European Fund Trends Survey found 69% of the 40 fund management groups surveyed are planning to add resources to deal with corporate governance issues in the coming year.

The planned hires follow a spate of corporate governance recruiting as the issue moves up investors' agenda. Governance for Owners, a share owner advocacy group founded by former Hermes directors Peter Butler and Steve Brown, recently hired nine people across Europe, US and South East Asia. Last September, Dexia Asset Management seven new investment analysts to its socially responsible investments team, for example.

However, Iraj Ispahani, an asset management focused headhunter at search firm Korn/Ferry International, says any additional recruitment is unlikely to be significant. "The houses like Hermes and Morley that are active in this area are already staffed up with corporate governance teams. I don't expect a great deal of demand."

Ispahani says corporate governance roles are frequently undertaken by former fund managers and analysts, and are increasingly seen as a career path in themselves. However, pay is less than for money management positions: "It is paid more as an investment support function," he says.