eFinancialCareers

Fund managers’ increased demand for knowledge of complex financial products is a bridge too far for the current GCC talent pool, and firms are looking to investment banks to find the requisite experience.

Research by KPMG has found that the appetite for complex products, such as derivatives, is on the up – with 57% of traditional asset managers using them in their portfolios. However, 50% of firms surveyed in the GCC said they have no in-house expert to advise on how they should invest in such products.

Tom Brown, head of investment management at KPMG, says: “Staff skill-sets have struggled to keep up with the growing sophistication of the industry. These firms cannot continue ‘flying blind’. Migrating experienced people from the investment banks to investment management firms could be one way of addressing this.”

The Middle East has become an increasing area of focus for fund managers, with ING Investment Management and Schroders recently setting up teams on the ground. What’s more, a lot of international firms are rolling out MENA funds to cash in on the boom.

But the lack of local talent is stopping some international firms from setting up an investment capability within the region, says Elizabeth Hackford, vice president at recruiters Sheffield Haworth.

“Firms that have applied for a manufacturing licence tend to bring fund management professionals in from outside the region,” she says.

Another stumbling block in the GCC fund management space has been a lack of adequate risk management, and the relatively nascent industry in the region is taking steps to take on people to address this.

Phil Knowles, head of financial services at KPMG in the UAE, says: “The fund management sector will need to take a hard look at how it operates by improving skill-sets, tightening risk management and achieving industry best practice in governance and transparency to show it can adapt to a fundamentally changed environment.”