eFinancialCareers

Asset management firms are vying for business from the cash-rich sovereign wealth funds, which are struggling to manage their rapidly increasing cash piles. However, this doesn’t mean SWFs are any less keen to recruit staff in-house.

“Sovereign wealth funds have got too much money too quickly and are struggling to manage it,” said John Nugée, head of State Street’s official institutions group and a managing director of State Street Global Advisors.

The opaque SWFs are not exactly forthcoming in revealing how much money they have. Current estimates put the total at around $3,000bn, but it’s nearly impossible to tell how much of this is up for grabs.

Cynthia Sweeney Barnes, head of sovereigns and supranationals at HSBC Global Asset Management, believes the quantity of assets being outsourced is at a record high.

However, she adds that SWFs are less likely to outsource “vanilla mandates” like cash, equities or fixed income as their ability to manage these in-house has improved.

And there are still ample opportunities for investment professionals within SWFs, according to Elizabeth Hackford, vice president at recruiters Sheffield Haworth.

“They are cash rich and on the whole looking to absorb good talent from the market whilst the multinationals shed staff and bandage their wounds,” she says.

But the recruitment process can be tough, she adds: “SWFs look to bring on board highly technically competent staff and their due diligence process of screening individuals can be arduous. But if candidates are patient then offers are often attractive.”

Bahrain’s Mumtalakat Holding Company recently announced plans to double its team with the recruitment of 25 analysts and 10 investment managers. It was offering up to $151k for investment managers and $100k for analyst positions.

The Kuwait Investment Authority is currently looking for investment managers and analysts.