eFinancialCareers

No–frills funds that charge low fees and provide minimal feedback to members are at the core of a shake-up of Australia's superannuation system proposed by a Federal Government review. (Courier Mail) What is it about AMP and its new French ally, Axa SA, that they seem so set on disturbing the peace of Rick Allert's weekends? Allert is the Adelaide networker of renown who chairs Axa Asia Pacific, the regional funds... Read more

Westpac is under pressure to reverse some of this week's supercharged interest rate rises across its mortgages as rival banks looked to capitalise on the interest rate furore by taking a softer approach. (The Age) The decision by Commonwealth Bank to follow Westpac in increasing mortgage rates by more than the RBA's policy move leaves the door open for ANZ to do likewise and NAB as the only big bank to... Read more

In a world increasingly focused on good governance, it is not surprising attention is turning to the people and institutions responsible for the $1.2 trillion accumulated in the Australian superannuation system. The world's fourth-largest super pile needs to be managed efficiently, transparently and prudently. But is it? (Business Day) The nation could surrender a competitive advantage in banking built up over decades if it adopted global reforms designed to reduce risk... Read more

AMP'S proposed takeover of Axa Asia Pacific Holdings is being driven by a scramble within the wealth management industry to expand distribution networks in the face of a trend towards lower fees and tighter regulation. (The Australian) Long-serving Insurance Australia Group chairman James Strong has flagged plans to retire from the general insurance giant from mid-next year. (Business Day) ANZ is to offer convertible preference shares to raise $750m in tier one... Read more

AXA Asia Pacific says it has rejected as inadequate a takeover proposal from rival Australian wealth management firm AMP. (The Australian) Commonwealth Bank has reported a strong first-quarter profit, with business improving across the board, sending its shares sharply higher. (Sydney Morning Herald) Job advertisements edged down in October, ahead of what could be a weaker official jobless figure to be released later this week. The total number of jobs advertised fell... Read more

Slowly does it. Large funds management firms are notoriously conservative recruiters and haven’t exactly been hitting the hiring button recently, despite the uptake in equity markets. But they are quietly making plans for 2010. “Activity has blossomed due to firms' willingness to have a number of conversations with people in the market but at this stage it’s been without an outcome,” says Meredith Jordan, a consultant at Jon Michel Executive Search. After... Read more

Funds manager Perpetual says its first half net profit may more than triple as equity markets stage a recovery. Net profit for the six months to December 31 will be between $40m and $50m. (Business Day) And Perpetual has recruited internally to replace its group executive of global equities, Emilio Gonzalez, who will become chief executive of BT Investment Management from January next year. (Money Management) Australia’s dwindling regional banks face another... Read more

Recent buying activities by the major financial institutions are threatening to kill off boutique fund managers, according to the chief executive of Premium Wealth Management, Chris Saunders. Saunders said the boutique fund managers were in danger of not being able to compete in a homogenised investment industry. (Money Management) Tyndall Investment Management managing director Brett Himbury has denied a newspaper report saying the Suncorp Group-owned fund manager may be for sale.... Read more

APRA has intensified its push for deferring performance-based remuneration in the banking and insurance industries, to enable a better assessment of a company's longer term performance. (The Australian) NAB caused a flurry of excitement yesterday when it revealed a 7 per cent holding in perennial takeover target Suncorp. But the torrent of speculation subsided when the bank confirmed it was a portfolio investment by its wealth arm, MLC. (The Australian) Australian companies... Read more

Financial planning recruitment is slowly starting to recover after a tough 12 months, with the Big Four banks and the larger dealer groups leading the way. But the employment market has a definite conservative edge to it. “Six months ago every bank had a recruitment freeze. Now some of the local retail banks have lifted it and are opening the doors. Recruitment is definitely picking up, although it’s far from recovering... Read more

Small fund managers are slowly starting to scoop up specialist senior staff left high and dry by the big boys. As reported on eFinancialCareers in May, large institutions – such as BT Investment Management, Colonial First State, Deutsche Bank, Perpetual and UBS – are trimming a few of their non-core funds and the employees who worked on them. The good news is that boutique firms – the likes of Integrity Investment... Read more

"Since returning to Australia, I have been applying excessively to large corporates but to no avail. I have applied extensively to graduate programs with places like Macquarie Bank, CBA, ACCC, AusTrade, ASIC, Westpac, ANZ etc. I have not gotten any responses of value and not got to the interview stage. I would like to get into risk management, investment management, treasury and potentially trade. I have a glut of interchangeable... Read more

Knowledge of Asian markets and/or a strong client network in the region could help to future-proof your career. Signals in the employment market suggest that Australians with Asian experience are starting to become more sought after at both funds managers and investment banks. Australian buy-side firms — including AMP Capital Investors, Platinum Asset Management and Maple-Brown Abbott — have added Asian equity funds to their portfolios to meet a growing... Read more

As the funds management industry ditches underperforming products, the unlucky specialists working on them are also facing the axe. Deutsche Bank has chopped three products from the Australian market, including one launched only six months ago. BT Investment Management is closing its Global Return Fund, while Melbourne-based boutique Alpha Investment Management is shutting down completely, following the loss of its biggest mandate from AustralianSuper. A fund closure can put the whole team... Read more

AMP Capital Investors, the financial conglomerate’s fund management arm, is encouraging its 1000-strong workforce to take a day of unpaid leave each month in a bid to prevent further job losses. It is also promoting existing cost-cutting initiatives, including the option to purchase leave for holidays, general reduction in annual leave balances, temporarily reduced working hours, and sabbaticals without pay. “It's important to note that these options are completely voluntary. It... Read more

Financial planners are increasing looking to upgrade their skills to give themselves an employment edge as the job market in their industry gets more competitive. And professionals from other sectors also are seeing the benefits of having a fin planning qualification. Applications for AMP’s Horizons Financial Planning Academy have risen from about 400 for the initial October 2007 programme to nearly 1,900 for latest one, which starts in May. There is... Read more

Securing a superannuation position, especially in an industry fund, is one of the safest ways you can ride out the financial crisis. But unfortunately firms are still fickle when it comes to letting new entrants into their industry. “Working in super is one of the most secure careers in financial services, and the least affected by redundancies. But funds are now looking internally for staff first and are not so quick... Read more

Project work for the Big Four is the best bet for unemployed IT professionals who want to get back to banking. But an increasing number of techies are also looking for jobs outside the finance sector. Most global banks are still enforcing IT headcount freezes, but the locals are recruiting, although predominately on a project basis. Banks started cutting IT contractors late last year, but Q1 has brought a small uptake in... Read more

It pays to be old and wise in Australia’s funds management industry. As times get tougher, inexperienced staff are the most in danger of being cut and the least likely to be rehired elsewhere. AMP and Perpetual were among the big funds to trim headcount last year, with the later recently announcing that redundancy payments for its 40 sacked staff contributed a large chunk of its $12m restructuring costs. This year looks... Read more

Australian infrastructure investor Babcock & Brown has set a new record for staff cuts at a going concern. It announced this morning that it plans to cut headcount by almost two thirds between now and 2010. Babcock’s stock has plummeted 99% this year, and today’s announcement followed a warning that it was in danger of breaching its covenants and needed to reduce costs by $150m in order to halve... Read more