Aussie fund managers to shed jobs
Half of Australian retail investment managers are set to reduce staff numbers in the near future, according to an industry survey released today byKPMG Australia.
The survey includes 25 Australian-based retail and institutional investment management firms as part of a global survey of 185 investment management firms.
While stating “almost half of retail investment managers said they would be reducing headcount”, the survey also flagged serious problems concerning branding within the Australian investment management industry.
Brand recognition is a bigger issue in Australia than globally due to the number of mergers leading to name changes, and “the damage done to high profile brands due to performance issues and a damaged public profile”, the survey says.
Partner in KPMG’s financial services group Paul Reid says the damages to brand recognition means less Australian managers are reliant on their brand for new or repeat business, with only 10 per cent incorporating the corporate brand into the value proposition.
Meanwhile, in comparison to their overseas counterparts, Australian managers view socially responsible investments as of lower priority, while the move away from defined benefit schemes has been more rapid in Australia than globally.
Australian managers are also less concerned than their global counterparts about the supply of appropriately skilled business leaders compared to securing the services of talented asset managers, and are less constrained by IT spending.
Regulatory pressures were reported as a lesser concern for Australian managers.
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