eFinancialCareers

Investment banks used to offer the best technology jobs in financial services, but recruitment firms say fund managers are increasingly getting in on the act.

Until recently, investment banks were the logical destination for anyone interested in a career in the world of financial services technology. Where else, after all, could you earn a packet while dealing with cutting edge systems used to trade the likes of complex financial derivatives? These days, recruiters say the options have multiplied: fund management firms have some interesting openings too.

“We’re seeing more and more front office roles coming out of fund managers,” says Tim Buck, a consultant at recruitment firm Jonathan Wren, “Alongside infrastructure and support staff, fund managers need people to work on complex systems development.”

IT spending by fund management companies is rising. A recent study of 21 investment management firms by Investit, the fund management consultancy, found IT spending in the sector rose 8% in 2005. At the same time, IT staff as a proportion of total fund management staff rose from 14% to 16%.

Nisha Jani, a recruitment consultant at Investit People, says growth is being driven by investment in order management systems to deal with derivatives: “Fund managers need extra functionality to deal with complex products,” she says.

Many of the new roles are going to contract staff with a background in investment banking, says Jani. The need to lure them away from highly remunerated positions on the sellside is driving up pay: over the past twelve months she says contract rates for buyside technologists with specialist derivatives knowledge have risen from £500 to £700 per day.

Jim Smith, a consultant at technology recruiter MSB International, confirms the increase in interest. “There have been lots of new developments kicking off in the fund management sector,” he says, “Instead of small enhancements to existing systems, we’re seeing actual full lifecycle projects.”

Fund management is still seen as a less glamorous sector to work in than investment banking, says Smith, but this isn’t always the case: “For a lot of contractors, getting any role in financial services is the main aim, whether it’s in fund management or not.”