INTRODUCTION
With the spectre of economic insecurity mounting, the fourth quarter of 2022 was expected to be a challenging and ever-changing period within the city. With numerous macroeconomic variables; the war in Ukraine serving as a catalyst in exacerbating energy costs followed by the mini-budget causing the market to become extremely volatile and inflation rates to soar, we anticipated that the recruiting sector would have been a microcosm of this. However, this was not the case, our industry demonstrated buoyancy and resilience against such trying times.
Nonetheless, there were challenges: candidates expressed concern about the value of compensation in light of the cost-of-living crisis, the depreciation of the pound and inflation rates. Job seekers considering a move were keen to ensure financial stability and to ensure that any roles accepted in 2022 would still go ahead in 2023. We proudly facilitated these negotiations, ensuring that our clients acquired top talent whilst best representing our candidates.
Despite the aforementioned, clients were keen to close off existing vacancies ahead of the Christmas shutdown. The need to hire investment professionals at all levels across Equities and Fixed Income meant that salaries and compensation levels remained competitive and certain areas remained candidate short even at the end of the year as some candidates put their job search on hold due to imminent compensation conversations internally. We found that Investment specialist/product specialist positions and Product development roles were also high in demand and several clients whilst not moving forward with some hires due to market uncertainty, were keen to benchmark roles ready to go live in 2023.
We also continued to see hiring in Q4 occur due to growth and several teams within the investment space hired Healthcare, Financials and Thematic Analysts due to uncertainty with some banks, several asset managers were happy to look at sell-side candidates as well as buy-side.
ROLE PROFILES
The market within the Investments, Front office and ESG space continued at the same pace as Q3. As we approached the festive season, processes began to settle down and clients started to assess their hiring needs for 2023. Our clients continue to consult recruiters for their market insight and intel and the focus remains on hiring, Fixed Income and Multi-asset professionals which were somewhat surprising given the market challenges within the Fixed Income space for Q4 of 2022.
ESG
The ESG, sustainability and stewardship market continues to be active with a push for professionals at all levels to deliver on ESG commitments heading into 2023 in light of the COP27 conference. Whilst the focus has been the E of ESG we have seen a shift by several clients towards the end of 2022 to start to focus on the S space but also to continue to build specialist knowledge around biodiversity.
With the government recently publishing its review on the net zero targets, the UK is in an unfavourable position compared to its European counterparts. Thus, the need for ESG continues to be at the forefront of many Asset managers as the push towards Net Zero continues. Many managers now understand that the UK being behind weakens the country’s capacity to compete and capitalise on huge economic opportunities afforded by the energy transition sector. Undoubtedly, these sentiments have long filtered into the recruitment hiring industry with clients now more than ever demanding more highly skilled ESG professionals with a background in investment and not just regulations, however, the demand for highly skilled ESG professionals continues to outweigh the supply.
FIXED INCOME
Additionally, we saw general economic conditions shift towards the conclusion of the fourth quarter due to slight improvement in Bond markets. Roles within Fixed Income have been very varied in Q4 from client-facing positions but also for Investment Specialist hires to be made with a Fixed Income focus. The shift for client-facing roles to have a European language remains a high priority for several clients. Investment support and performance positions have been in demand, again with a Fixed Income bias.
Clients continued to hire qualified individuals on good salary increases and, where necessary, have offered strong sign-on bonuses to encourage candidates to resign before the New Year. We have seen the need for a good sign-on bonus in Q4 at all levels from Analyst to Senior due to market conditions and candidate uncertainty about moving before receiving their full year’s comp in early 2023.
PREDICTIONS
Despite the buoyancy in the markets, we anticipate the Alternative space will continue to grow as their illiquid nature will be a key hedging tactic as managers attempt to try and minimise their portfolio’s exposure to market risk and volatility. Therefore, we expect clients to continue to want to expand their coverage in this area in 2023 and hiring needs will continue to reflect this. Several Asset management clients are looking to launch new Alternative Products in 2023 and so the need to hire more product developers with Private Markets/Alts experience will be an area of significant interest given the economic circumstances to which we are predicting continued growth.
ESG will continue to be an area of interest and emphasis for many clients, and while clients have focused on recruiting in this sector to expand resources, the focus will continue to remain on biodiversity but continue to shift to the S side as well as addressing and measuring “Impact” of impact investments.
MOVERS AND SHAKERS
Nomura Asset Management has appointed Julian Marks as head of hybrid bonds within the firm’s fixed-income team.
New Capital, the mutual fund’s arm of EFG, has appointed Paulus De Vries as a portfolio manager at the firm.
Federated Hermes had hired ex-Jupiter manager Ross Teverson to lead the firm’s Equity Ownership Services engagement team for Asia and global emerging markets.
Rathbones Group has hired Anne-Marie McConnon as its chief client officer.
M&G has appointed Joseph Pinto as the new chief executive officer of its asset management business.
Carmignac Investments has hired Lloyd McAllister as their Head of Responsible Investments.