It's getting tougher to break into asset management in Scotland

We're currently in the midst of graduate recruitment season in the financial sector, and for students wishing to break into asset management in Scotland, this year is arguably tougher than ever.

The number of applications per place is on a par with 2011 - when there was a big spike - yet the number of opportunities is shrinking.

Scottish Widows Investment Partnership (SWIP), which last year re-instated its graduate programme after a two-year hiatus, has cancelled its intake for 2011/12.

Eight graduates started at SWIP in September, and now face a two-year training programme, but it tells us that as a result of this recruitment "our recruitment needs at this level of experience are met. We will of course review this position next year."

The good news is that a number of asset managers in Scotland are still taking on graduates. Baillie Gifford plans to take on 18 graduates across its investment, operations and IT programmes, Martin Currie has two places available, Alliance Trust is accepting applications, while Standard Life Investments says that it will continue to recruit graduates throughout 2012.

Nonetheless, after an increase in applications last year, competition appears just as tough for 2012. Baillie Gifford says it has received 1,800 applications for its graduate roles, which means 100 students vying for each place. Martin Currie, meanwhile, says it expects 600 applications; or 300 for each available place.

"Competition for places is tough; applications are at historical highs again this year," says Richard Barry, HR manager at Baillie Gifford. "We'd recommend that students really research the industry and understand the different investment approaches and structures of asset management companies, as well deciding whether a career in Edinburgh is for them."

Despite an increase in the number of MScs related to investment management, as well as more applications from economics students, undertaking a quantitative degree doesn't necessarily give you an edge.

"The point we want to make clear is that people studying arts degrees have as much of a chance as those studying economics or finance," says Barry.

Competition for places within Scottish fund managers is now on a par with application ratios within investment banking. Despite this, the salaries remain comparatively modest; Dundee-based Alliance Trust is offering its grads a starting salary of 23k, for example. However, the average base for graduates in front office roles in an Edinburgh fund house is 35k, suggest recruiters. Most investment banks offer 35-40k for first year analysts.