Let's not rule out redundancies at BIAM just yet
On the face of it, State Street's acquisition of Bank of Ireland Asset Management (BIAM) last week was a rare beast in the country's financial sector these days - a good news story.
Never mind the fact that State Street snapped up the once substantial fund manager for a mere €57m at a time when assets under management had shrunk to €26bn - or less than half its peak of €56bn.
It was a match made in heaven, with BIAM's active management style perfectly complementing State Street's index-tracking approach, and the former's 500-strong client listing proving a valuable selling point.
Therefore, BIAM's 120-strong team would transfer across, according to State Street's statement.
Unfortunately, it might not be a completely happy ending. Greg Ehret, State Street's head of Europe has since refused to rule out job losses, but instead says he hoped any impact would be "minimal" on the workforce. Similarly, a Bank of Ireland spokesperson said it was too early in the process to quash the prospect of redundancies entirely.
However, one positive is that there are few back office functions to strip out. A Bank of Ireland spokesperson says that both IT and finance functions are outsourced, while funds servicing is largely carried out by Bank of Ireland Securities Services, to which it will remain a customer.
State Street may also be concerned about key talent jumping ship during this period of change, particularly within a company like BIAM, which has a history of high turnover among senior staff in years gone by.
So far, though, headhunters suggest that there have been few signs of an exodus among BIAM staff, largely because of a lack of options elsewhere.
"Most asset managers in Ireland are following the global trend by taking a cautious approach to front office hires," says one headhunter who declined to be named.
There's been upheaval elsewhere in the industry. For example, this month KBC Asset Management Dublin was acquired by RHJ International, but its 58 staff were expected to be retained.
There have, however, been roles with Irish Life Investment Managers and Fideuram Asset Management, according to recruiters.
