Asset managers hunt experienced analysts

The latest Morningstar European Fund Trends survey suggests fund management firms are guilty of poaching analysts from elsewhere, and rarely train them themselves.

The survey, which covered 36 fund management groups across Europe, found that 71% of existing buyside analysts had more than 6 years experience, and that 58% of funds said they liked to hire analysts with at least some prior experience, while 25% said they preferred those with five years' experience or more.

Only 17% of fund management firms said they'd hire people straight from university and train them.

Could it be the buyside is a natural habitat for seasoned analysts from investment banks? Rumour has it that many of these older hands are being displaced by cheaper juniors as banks seek to save money on research following the introduction of unbundling legislation.

But one fund management headhunter, says asset managers are just as keen as the next bank on hiring junior analysis talent: "It's not true that fund managers don't train people as analysts. Graduate recruits on the investment side start in the research department," she says.