Boutiques take centre stage in pre-emptive grab for funds management distribution talent

Large funds management firms such as Perpetual have recently made cuts to their Melbourne distribution teams, which has enlarged the available talent pool at a time when niche players are considering expansion.

“Some of the small ones are taking advantage of the reductions at the majors and are hiring. It’s a rare time in the market to pick up good distribution people. And there’s no stigma about candidates who have been made redundant,” says Sarah Wapling, principal, SFG Recruitment.

While the floodgates aren’t exactly wide open, boutiques are growing their distribution headcounts more rapidly than most of the larger funds management institutions.

“These are nimble firms who invest in small caps where there is more upside at the moment. They are planning for growth in the next financial year. At the very least they are asking me ‘what is everyone else doing?’ which means recruitment is on their minds,” says Wapling.

Moving to a boutique often makes sense for distribution candidates who are currently at or have recently left a big firm. “It can be a natural career progression. Those with several years experience want somewhere with a point of difference – for example dealing with small caps, where deals move quickly. You can also meet with the portfolio managers more easily,” says Wapling

She adds: “Most candidates are interested in meeting you and are curious about  potential opportunities, which is a good sign for the job market.”

As a rule, distribution roles are usually created first and once inflows arrive, firms start hiring portfolio managers, analysts and support staff.