Gulf-based asset managers switching focus to investment staff
After threatening to take off towards the middle of 2008, the GCC's relatively nascent asset management industry stalled as the financial crisis hit. But the regional stock market rebound has created a new appetite to hire investment professionals on the ground once again.
Equity and property funds are still the dominant force in the Gulf, despite more of an interest in fixed income products and the launch of a the first exchange-traded fund (ETF), which has so-far received a slightly lukewarm reception.
Both the QFC Authority and the DIFC have signalled their intentions to make the regulatory environment friendlier to asset managers, and so far Russell Investments, Reliance Asset Management and Franklin Templeton have indicated their desire to hire in the region.
Pascal Duval, executive managing director, EMEA, Russell Investments, said: "The first professionals we are going to put on the ground are not going to be sales people, they are going to be investment professionals."
This is relatively significant - previously, with the exception of the likes of ING Investment Management, most international firms' satellite offices largely comprised sales staff. Russell's attitude seems indicative of a growing number of firms.
Locally, Shuaa Capital has hired Nadi Bargouti as head of asset management and has hinted at more recruits, while NBAD has said it intends to hire "good talents" for its fund management function.
"There was a lot of fall out in the asset management sector in 2008, and as a result firms are looking to recruit talent which is currently on-the-ground," says Hasnain Qazi, Middle East business partner at Pathway Resourcing. "Ideally, this would be a local candidate, and Arabic is an advantage, but primarily they have to be based in the GCC. With the pool of candidates available, asset managers will not relocate people to the region."
This isn't the case with senior hires, though, where international experience within emerging markets focused funds is increasingly a requirement, suggests Jonathan Gould, financial services consultant at iQ Selection.
"We're working on mandates for chief investment officers and portfolio managers, and we're anticipating that these roles will really take off this year," he says. "It's a mixed bag, with some firms insisting on local experience, but time at an emerging market fund in London will also be highly-valued."
It seems that working at an international firm will be most lucrative option. Recruiters tell us that base salaries for a chief investment officer or head of asset management come in at AED90-100k a month (or $294-326k per annum) at an international firm. This is closer to AED60k a month ($195k per annum) at a local fund manager.
Similarly, a portfolio manager can expect AED70k per month ($228k per annum) at an international fund manager in the GCC, while local firms pay closer to AED40-50k per month ($130-163k a year).
