Q&A: Is fund administration still a good career?
Fund Administration often gets a bad press for being boring back office bean-counting. But is it really as unglamorous, poorly paid, and lacking in prospects as it sounds? We asked David MacKenzie, Senior Consultant at Dublin-based Lincoln Search and Selection to tell us more.
So, how important is Fund Administration in Ireland?
Ireland is a hub of fund administration in Europe and is one of the prominent global centres of fund administration worldwide. In July 2011, one of the major global investor magazines named Ireland as the best offshore centre of the year. Ireland administers over 40% of global alternative investment fund assets and, in 2010, assets under administration grew from €1.4 trillion to €1.9 trillion, with more than 400 new jobs created. Further growth in the sector in 2011 will, the industry forecasts, add an additional 1000 jobs.
What should I do if I want to work in fund admin?
Well you would start at Graduate level / Administrator, then move to Senior Administrator. Next comes Supervisor, then Assistant Manager. Moving up to Manager/AVP Level and then to VP level.
Employees will spend typically 2/3 years at each stage. It may take 3-5 years from supervisor to assistant manager, and 5 years (+) from assistant vice president to vice president to give some idea of the time it takes to gain promotion in the sector. In a buoyant market a hardworking and ambitious candidate could progress from a graduate position to a VP level in circa 15 years. I have talked to two candidates this week, who have both taken 12-15 years to get from a “first job” / graduate position to VP level.
How much can I earn at the very most?
Finally, there are Director level roles- (e.g. Head of a Department such as “Director- Head of Valuations” or “Director- Head of Fund Accounting”). These positions can typically earn €130K base salary plus benefits and bonuses.
And how much might I earn to begin with?
Salaries in this space are competitive and pegged to the wider financial services and accountancy markets. For example, a graduate with a good university education could demand a starting salary of €25,000(+). A graduate in a regional location could fetch a salary of €21,000 (+) so all in all, candidates are competitively rewarded in terms of take home pay.
What’s the pay as I climb the pole?
Remuneration significantly increases as you advance up the career ladder to more senior level positions. A Vice President could demand a base salary level in the region of €90K + benefits. This is above average compared to other financial jobs in Ireland. However the higher tax rate, compared to some other jurisdictions, can make the salaries less competitive.
Are people really getting promoted now though? I hear they're not.
Things that prevent people doing so are market conditions – this is particularly true in Ireland at the moment. There is a large pool of senior people vying for a small pot of promotions. There are quite a lot of people in the industry who have not been promoted since the downturn in 2008 who now have 3-5 years additional experience. Companies can’t afford to promote these staff members as promotion generally means an increase in salary level and there is cost cutting across the board of late. Every single additional expense is being monitored and whittled back. Some staff are taking promotions with no increase in salary to try progress their skills and progress within the business.
