Fund managers are having a hard time finding experienced senior staff to grow their sales teams, especially as they shift focus from big institutional investors to wealth management clients.
With fewer investments coming from big institutions like superannuation funds, fund managers are turning to the wholesale market, which includes financial advisers and wealthy individuals. This shift has led to more launches of active ETFs and alternative funds aimed at these new investors.
However, hiring senior sales experts is costly and challenging. Many experienced professionals are staying put because salary increases have only kept pace with inflation. As a result, firms often hire junior staff instead, which narrows the pay gap between junior and senior roles.
Salaries for senior wholesale sales managers range from about $230,000 to $350,000, but these are generally lower than salaries for similar roles in institutional investing, where pay can be 20% to 30% higher.
Experts say institutional investing is shrinking, while wealth channels and family offices are growing. Separately managed accounts (SMAs) are also becoming more popular, creating new opportunities.
Private markets like private equity and infrastructure are another area with strong hiring and higher salaries-heads of distribution in private markets can earn up to $450,000. But finding skilled staff in these fields is tough, leading some firms to look overseas for talent.
Overall, fund managers face a tough job balancing costs and finding the right salespeople to reach new investors in a changing market.
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