Asset managers were struggling to hold on to young professionals who were quick to jump at the next opportunity to advance their careers. Picture, Ziphozonke Lushaba, African News Agency, ANA.
South African asset managers were struggling to hold on to young professionals who were quick to jump at the next opportunity to advance their careers, according to a survey by INN8 Invest, a large discretionary fund manager.
There was a lower retention rate of staff at the analyst level of fund-manager houses compared with senior positions.
Most asset-management firms preferred to groom analysts, many of whom came straight out of university, into portfolio managers.
Analysts tended to leave if it would help them advance to the next level – about 35 percent were likely to have left for better growth opportunities, according to INN8’s research.
INN8 Invest surveyed 34 asset-management firms, most of which had been in business for more than a decade.
Most of the reasons cited for people leaving were emigration, moved cities, joined academia, further pursued their studies, started own businesses or left for health reasons.
These together accounted for 69 percent of departures.
Some boutique managers attributed part of the churn to poaching by larger asset managers. Boutiques felt they couldn’t compete on pay and that many junior professionals wanted to be associated with established brands.
This could, however, be a perception since boutique managers could provide staff with good opportunities to improve their skills and gain a wealth of experience.
Besides, 63 percent of the asset-management firms surveyed said that their compensation structures were not responsible for exits.
However, 9 percent said remuneration, including share ownership, was possibly the reason for staff quitting.
BUSINESS REPORT
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