The gap in profitability between successful and not-as-successful asset management firms has widened, with the top players managing more money than they have in previous years. These changes have both opened and closed doors to money managers.
Two years ago, when the industry was really struggling, a lot of firms shut their doors or axed employees to save money, according to Ed McGlynn, president of Financial Recruiters LLC, a New York-based finance executive recruitment firm. However, when things picked up, they re-hired people they had initially let go.
Now that things have begun to settle, demand is coming from firms like BlackRock, Capital Group, and UBS. Other key players in the industry like T. Rowe Price are expanding, and in order to compete with the big boys -- BlackRock and PIMCO. JPMorgan is said to be revamping its asset management unit in the coming months.
But the outlook isn't great across the board.
Companies like Bank of America and Barclays are looking to sell their shares in asset management firms in order to regain some wealth. "In general, asset management hiring is holding steady," said McGlynn. "It's business as usual for now, and that will continue until they're forced to do otherwise." The real growth, he says, is in private wealth. Barclays, for example, plans to quadruple its U.K. wealth management division over the next five years. And on this side of the pond, where baby boomers are reaching retirement, wealth managers, and those with experience in guaranteed investments at insurance companies or derivatives, are in demand.
Write to Kelly Eggers