A sluggish outlook for asset management recruitment in Scotland

Asset managers looking for work in Edinburgh over the last year would have found relatively febrile opportunities available to them. Unfortunately, this looks set to slow down in the coming months.

Fund management firms are still hiring, but the pace was more sluggish in the last quarter and is set to chug along at the same rate in Q3, according to the latest PwC/CBI Financial Services Survey. What's more the percentage of respondents saying they intended to hire has slumped since September 2010.

This shouldn't be entirely surprising; few fund managers are going to be announcing huge hiring plans when markets were tanking on the back of the eurozone sovereign crisis and ongoing unrest in the Middle East. However, it's something of an about turn from the start of this year.

"A lot of fund managers in Scotland are starting to close the door on recruitment," says Colin McLean, managing director of SVM Asset Management in Edinburgh. "Last year, there was a lot of hiring on the back of new product launches, particularly global equities, but regulatory uncertainty and weak markets have dampened this recently."

Standard Life Investment, Scottish Widows Investment Partnership and Martin Currie all increased their headcount last year, while most boutiques were recruiting.

Headhunters suggest that most fund managers are still hiring risk professionals north of the border, but that money management roles have dried up recently. However, movement at the top is likely to force some firms into hiring, says Joanna Black, director of Scottish asset management headhunters Black Appointments.

"At the senior end, a number of people have been sitting tight for some time and their position is being closely watched by other firms looking to upgrade," she says.