Insights

Market Overviews

SALES & MARKETING MARKET COMMENTARY, Q2 2018

• Article by BRUIN Financial

SALES & MARKETING MARKET COMMENTARY, Q2 2018

MARKET OVERVIEW

BRUIN’s Sales and Marketing team have had an eventful quarter, as our asset management clients put their plans for Brexit into action. Asset managers have become increasingly vocal about their frustrations with politicians over the slow pace of negotiations, with several deciding it is better to fire the starting gun on their contingency plans. It seems as though Dublin is currently in the spotlight, with Barings Asset Management, Hermes Investment Management, Legal & General Investment Management, Legg Mason, Morgan Stanley, State Street Global Advisors and Principle Investors, all looking to make the move.

Luxembourg also seems to be a strong contender, with firms such as Columbia Threadneedle, Janus Henderson Investors, Jupiter Asset Management, M&G, MFS, T Rowe Price beefing up their Luxembourg team. As a result, our team have been recruiting a number of Sales, Marketing and Client Management positions in Dublin and Luxembourg, which have a ‘Risk’ and ‘Oversight’ focus.

We have also seen the continued substantial growth of ETF products and are increasingly seeing roles specialising in these asset classes. The growth of this product means there is an increasing need for distribution efforts, with marketing and sales working together for promotion and distribution. A peculiarity of the $4.4tn ETF industry is just how little is known about many of the institutions that own these marketable securities that track an index. Asset Managers find it a real challenge to obtain data on which investors are using their ETFs or a competitor’s products. Identifying ETF investors is difficult due to a scarcity of publicly available data on investor’s type, size and location.

Over the past few months, we have seen several of the world’s largest asset managers publicly share data on the ethnic diversity of their work force as executive pay, board diversity and bad management practices have moved further up the agenda. We are seeing more and more of our HR Partners are requesting diverse shortlists, particularly at the mid to senior management levels. However, greater representation of women on company boards has not been accompanied by increases on the lower rungs of the corporate ladder, suggesting diversity initiatives targeting top executives are working, but more needs to be done to improve the gender balance of companies as a whole.

 

ROLE PROFILES

Q2 of 2018 has seen continued hiring at the senior end of the market, particularly within the Content and Investment Writing space. The profiles that asset management firms in particular are open to come from publications and journalism backgrounds, as well as direct competitors. As well as content, we have seen a significant increase in the volume of Business Development and capital raising opportunities, particularly within the advisory and discretionary. This has echoed the strategies of many investment firms in a shift away from institutional and more toward the quicker wins in the intermediary market.

Digital marketing has also remained a prominent area for recruitment with both generalist and specialised candidates highly sought after; in particular social media, email marketing and content management roles have been the desirable requirements. Again, these areas have primarily been focusing on furthering the reach of the intermediary channels to attract new investor bases. When millennial investors and accessibility to investment options and portfolios are highly wanted by stakeholders, the increase in outlay to grow digital propositions are worth-while.

Finally, as we head ever closer to the Brexit deadline in March 2019, we have seen increased levels of European roles, both requiring European languages to be based in London as well as in mainland Europe. These will likely see a divide between more supporting staff in both marketing and sales to remain in London and assist from oversees, whereas client facing distribution personnel will be encouraged to move to the countries they are marketing to.

 

PREDICTIONS

In Q2, we noticed an increase in specific European hires within Marketing and Distribution. Dublin, Luxembourg and Paris are a few of the many notable locations who have been expanding their European hubs. In correspondence of this, there has been an influx of European specific language hires, mostly Spanish, French, German and Italian. We expect this trend to continue throughout the rest of the year with more opportunities for native European candidates.

Since the announcement of Brexit, large Investment houses such as JP Morgan Asset Management announced their plans to move staff to their new Dublin offices to accommodate the operational changes. From a recruitment perspective, BRUIN Financial has followed similar steps with a new partnership with a local firm, Barden Ireland, to provide high quality specialist recruitment services into the Irish financial services sector.

This quarter we’ve also noticed an increase in Brand Marketing roles across mid to senior level hires. It seems Investment houses are measuring their brand awareness and brand value since the announcement of GDPR which had a consequential effect on the execution of marketing materials. Brand strength and AUM go hand-in-hand so we can only expect more roles in this space.

Following on from this, a number of Institutions have shifted from the traditional, institutional audiences to focus on their retail and wholesale approach. We assume this method is to attract the new generation of millennial investors via a D2C approach and faster moving inflow revenues. Millennials are thought to shape the future of asset management, therefore pushing Institutions to adapt to a tech-savvy generation via their marketing method. Fintech firms are already luring millennials away from asset managers with their digital experience, so we expect to see a new era of marketing upon the Investment management industry to tailor to the new generation of investors.

 

MOVERS AND SHAKERS

Over the last quarter, and in lieu of the Brexit implementation, the market place has seen a strong focus on hiring new heads to represent their financial firms on a European (and global) focus and spectrum. This is particularly the case for asset managers.

For example, BNP has recently hired Stephanie Gordon as the new Senior European Marketing Manager. Moreover, Generali Investments Europe, the €340bn asset management arm of the insurer Generali, has appointed Andrea Favaloro as head of sales and marketing. Mr Favaloro joins from BNP Paribas Investment Partners where he was global head of external distribution.

With an increasing focus on asset managers expanding their remits; there have been plenty of movers and shakers that have moved into roles with a global reach. Aviva Investors has hired Charles Jewkes as head of global financial institutions. He joins the £353bn asset management arm of Aviva, the UK insurer, from Fulcrum AM. Furthermore, Andrew Hendry has joined Aberdeen Standard, the $779bn asset management business of Standard Life Aberdeen, as head of distribution, Asia Pacific. He previously worked for Westoun Advisors. The same can be said for T.Rowe Price who, in May, has appointed Scott Keller as head of pan Asia, responsible for building institutional and intermediary business.

 

BRUIN NEWS

BRUIN Financial are proud winners of the ‘Recruiter of the Year’ category at the 2018 Women in Finance Awards, which recognises the firm that has championed equal pay and diversity in financial recruitment. BRUIN was particularly commended for leading change in the industry and providing insightful counsel to help their clients achieve fair gender representation at every level.

From a recruitment perspective, BRUIN has recently opened an office in Dublin in partnership with local firm Barden, to provide high quality specialist recruitment services into the Irish financial services sector. For more information on our Irish capability, please contact one of our Consultants.

We are also delighted to have been recognised by the  Sunday Times as a Best 100 Small Company to Work For in the UK, and additionally ranked in the list for London.