The document summarizes the Q1 2015 market for distribution hiring. It found that while 2014 saw strong growth, Q1 2015 saw a hiring lull as trends stabilized. Demand increased for support functions and skills like digital literacy, European languages, and experience in emerging/European markets. The hiring process remained consistent, emphasizing "team fit". Bonuses increased, and candidate scarcity remained an issue due to high retention and demand for niche skills. Distribution hiring is expected to slow in Q2 while other areas may see increased demand.

1. Distribution
Q1 2015
Black Swan Group
Quarterly Market Update
Market Overview
‘With such strong performance across the
market wrapping up 2014, the market has
experienced an increased demand for
Support functions in order to maintain this
momentum.’
2014 saw a boom in hiring across Distribution as a
result of economic recovery, renewed confidence,
and strong growth. Q1 for 2015 has seen a
stabilisation of such trends, resulting in an overall
hiring lull. Consequently, such growth has
increased the need for Support functions across all
Distribution areas.
The largest Institutional Investment Managers
continue to be active in hiring, although often at a
slower pace due to various internal processes.
Mid-tier Asset Managers and boutique Hedge
Funds have been hiring with more urgency, due to
recent strong performance and the lack of
infrastructure to sustain such patterns without
bringing in further staff. Contract hiring, perhaps
as a result of this disparity, has seen a sharp
increase.
‘In Marketing, digital literacy is becoming
more lucrative as financial institutions
drive their strategy toward increased
accessibility for multiple generations of
investors’
In-Demand Skill Sets
With such strong performance across the market
wrapping up 2014, the market has experienced an
increased demand for Support functions in order
to maintain this momentum. Client Relations,
Marketing, and Performance areas have seen an
upsurge in expansion hires across the Support
functions as a result, rather than replacement
hires from movements within the market.
‘Language skills, with a particular
emphasis on European languages, have
continued to be a prevalent demand
across both client-facing and marketing
positions as firms move to operate in
Europe’
In Marketing, digital literacy is becoming more
lucrative as financial institutions drive their
strategy toward increased accessibility for multiple
generations of investors. Additionally, recent
regulations have been implemented and taken in
stride, placing an increased importance on
marketing collateral as an integral part of the sales
strategy and process, as collateral is something
that can be reviewed by Compliance and other
relevant teams.

2. One setback we have seen in this area is the
relative scarcity of candidates with ample
Investment Management experience in addition to
finely tuned digital expertise – as those with this
set of niche skills are firmly placed in roles with
few reasons to move elsewhere. Therefore, we are
urging our clients to exercise flexibility by looking
at candidates from different types of financial
institutions and agencies that have financial
institutions as clients. This flexibility, in
conjunction with offering help for qualifications
such as the IMC, will produce a more robust digital
specialist workforce.
‘Italian, French, Spanish, German, and
Nordic languages have featured
prominently in language demands’
Language skills, with a particular emphasis on
European languages, have continued to be a
prevalent demand across both client-facing and
Marketing positions as firms move to operate in
Europe, following the implementation of recent
regulations (i.e. renewed UCITS, AIFMD). Italian,
French, Spanish, German, and Nordic languages
have featured prominently in language demands
across all types of buy side institutions, in
accordance with market trends and firms’
expansion into such markets.
‘Candidate scarcity is a key factor in
competitive packages being offered by
institutions in demand of niche skill sets’
Pinpointing candidates with both strong language
skills (varying preference amongst institutions in
terms of which language is native and which are
fluent due to study and practical use) and
experience in investment management is requiring
agents to spend more time and have more
inventive strategies for finding these pools of
candidates.
Job Market: Driving
Forces and Hiring
Trends
‘In Distribution, the most common reason
for leaving has been for lack of
progression opportunities at their current
company in their current role’
There has been a continuation of the candidate
scarcity in Distribution that we saw in 2014 leading
into Q1 2015. Many high calibre support
candidates are already working in the market for
key competitors (extenuating circumstances
aside), are happy in their roles and not actively
looking, and are therefore more difficult to entice
to look elsewhere. While institutions are driving
the trends in terms of jobs available to the market,
candidate scarcity is a key factor in competitive
packages being offered by institutions in demand
of niche skill sets.
‘Q1 has seen more clients hiring for
expansion purposes rather than just to
replace’
Although Distribution did not experience many
buybacks in Q1, this trend is something we have
been seeing more of across the board, particularly
with specialist skill sets regarding languages,
particular market expertise, and systems skills.
Often, understanding the motivation behind the
candidate’s reason for looking and potentially
leaving a company is the key point of leverage for
convincing them to move to a different firm. As
agents, we are increasingly pushing back against
buybacks in earlier stages of the process. In
Distribution, the most common reason for leaving
has been for lack of progression opportunities at
their current company in their current role.
‘Companies are more open to temp-to-
perm bases with strong candidates,
allowing for a trial period while they wait
for sign off for a permanent position’
As discussed, Q1 has seen more clients hiring for
expansion purposes rather than just to replace.
Additionally, with renewed confidence, companies
are opening up to the less experienced hires, with
plans to train the budding workforce through the

3. advent of more junior Support roles – the aim
being to develop candidates internally and
promote organic growth.
Selection Process
‘Overall, the processes have been more
contingent on ‘team fit’ or personality hires
than any other factor’
Q1 has remained relatively consistent across all
sizes of investment firms regarding the hiring
process. Multiple rounds and involvement from
management, senior staff, and HR are key
characteristics for permanent hires, as expected.
However, contract positions, too, are experiencing
two or more rounds (depending on the urgency of
the hire and length of contract) with the potential
candidate meeting as many people as considered
normal for permanent hires. Companies are more
open to temp-to-perm bases with strong
candidates, allowing for a trial period while they
wait for sign off for a permanent position.
‘In comparison with Q1 2014, bonuses
have seen an increase, further enabling
retention for strong-performing firms, and
also aiding them in attracting new talent
and enticing them to join their firm.’
Testing has continued to be an integral part of the
process across Distribution, particularly with the
trend of increasing hires in Support areas. Literacy,
Data manipulation, Presentations, and Excel-based
tests at the second stage of interview process are
employed to gauge how much training a junior
candidate may need, their attention to detail, and
grasp on the style, grammar, and rhetoric of
financial collateral. In more senior level positions,
psychometric tests continue to add weight to
hiring managers’ assessments of a candidate’s
ability to fit in with a team and take direction as
well as initiative.
‘In comparison with Q1 2014, bonuses
have seen an increase, further enabling
retention for strong-performing firms, and
also aiding them in attracting new talent
and enticing them to join their firm’
Overall, the processes have been more contingent
on ‘team fit’ or personality hires than any other
factor. In Support functions, where there may be
multiple capable candidates, how the team sees
themselves interacting with the candidate is an
essential point. Therefore, interviews have been
increasingly conversational, though competency-
based questions are still used, rather than
technical and pressurised.
‘With increased demand for specialist skill
sets, sourcing candidates in an already
candidate-scarce market calls for new
approaches and creativity’
Salaries
In comparison with Q1 2014, bonuses have seen
an increase, further enabling retention for strong-
performing firms, and also aiding them in
attracting new talent and enticing them to join
their firm. PNL forms for firms also show that
salary increases will be more substantial this year
than in 2014. The effects of this occurrence on the
candidate market remains to be seen – with
money as one of the main motivators for
candidates to look at moving, sharp salary
increases may add to the candidate scarcity
phenomenon. Firms that do not fall in line with
this predicted trend may face retention tensions as
candidates exchange information with their peers
at firms with more generous increases.
Sourcing
‘While the tried and true Multi Assets
markets will continue to flourish, 2015 has
been marked to also continue to
experience confidence in Equities.’
With increased demand for specialist skill sets,
sourcing candidates in an already candidate-scarce
market calls for new approaches and creativity.

4. Referrals from past candidates as well as from
clients (candidates who are strong but not quite
the right fit for what they are after) have played a
significant role in sourcing appropriate candidates
for these difficult roles. Headhunting, across the
UK and European market, has also continued to be
an integral component into finding candidates that
have the skill sets that are most lucrative and the
market knowledge to go with it.
Market Specifics
Heading further into 2015, many of the market
predictions for the year are already ringing true.
Dips in oil prices, decreased inflation, and
decreased risk aversion are characteristic of
markets and investors throughout EMEA. Q1,
however, was also fairly volatile from January to
February, indicating that we may be along for a
bumpy ride in Q2 depending on inflation, oil
prices, and the resulting effects on interest rates.
‘Strong YOY gains in Italy and Germany,
as well as predicted growth for Germany,
France, Italy, and Spain will ensure that
these languages will continue to be in-
demand for investment firms looking to
continue work in or break into the
European market.’
While the tried and true Multi Assets markets will
continue to flourish, 2015 has been marked to also
continue to experience confidence in Equities.
Global ECM activity was up 11% at the close of
2014 and has demonstrated consistent
performance for Q1.
‘Emerging market equities are also poised
to have better yields in 2015, which will be
reflected in more UK and European firms
breaking into these markets, requiring
further staff in global strategy, operations,
marketing, sales, and other areas.’
Strong YOY gains in Italy and Germany, as well as
predicted growth for Germany, France, Italy, and
Spain will ensure that these languages will
continue to be in-demand for investment firms
looking to continue work in or break into the
European market. Actions of the ECB will be a
contingency point for the performance of
European equity markets, as will recruitment
biased towards such markets. Emerging market
equities are also poised to have better yields in
2015, which will be reflected in more UK and
European firms breaking into these markets,
requiring further staff in global strategy,
operations, marketing, sales, and other areas.
‘Candidates with expertise in European
and Emerging markets could see
increased demand as well as candidates
with technical Marketing skills and
European languages.’
Outlook for Q2
Recruitment for Distribution will likely see a slower
Q2 than for the same period in 2014 as growth and
expansion from 2014 stagnates. However,
candidates with expertise in European and
Emerging markets could see increased demand as
well as candidates with technical Marketing skills
and European languages.
Ariana Williams, Consultant
ariana.williams@blackswangroup.com
+44 203 301 5808