Scots fund management market heating up

Scotland's market for front-line fund management roles became a little bit bigger this week, with Fidelity International and Alliance Trust both announcing new ventures in the country.

Fidelity revealed plans to open a new office in Edinburgh, while Alliance Trust announced plans to build a team of fund managers for its new Hong Kong venture, working out of its Scottish office.

Richard Fletcher, of headhunter Fletcher Jones, tells us Fidelity's decision is good news for the Scottish fund management industry and will add to Edinburgh's reputation: "I'm sure that everyone who works in fund management in Scotland will be delighted to have read that news, even if they may potentially lose a couple of people."

The news follows a bleak few years, which most notably saw Abbey close its fund management operations in Glasgow in 2004.

Fletcher added that fund managers looking to relocate to Edinburgh, or just progress their careers, can now expect to command similar salaries to London-based colleagues after changes in remuneration packages in the last few years. Fidelity offers the added attraction of close proximity to star fund manager Anthony Bolton, who said yesterday that he will take on a recruitment and mentoring role for the company.

However, Joanna Black, of Edinburgh-based Black Appointments, tells us the majority of her work remains in London: "I know Scotland tries to talk up a good game and I wish we did have more going on in that area, but most of the jobs here are with companies that are setting up back-office administration functions."