The CEO of Allianz Global Investors has spelled out the growth prospects of the global fund industry – a financial sector set to create a vast number of jobs over the next five years.
The CEO of German fund house Allianz Global Investors envisages future growth prospects for the global fund industry – which is expected to undergo a huge rise in assets under management – creating a vast number of jobs for financially-trained graduates.Speaking at the European Investment Conference held by the CFA Institute in London, Allianz GI CEO Elizabeth Corley said that there has been growth, profits are returning, and she envisages future growth prospects for the fund industry.
“We have so much wind on our backs in terms of the flow of assets. We are going to reach new highs,” she said. But she added that her industry still faces the threat of risk-aversion, prompted by financial repression, and there will be no likely change in attitude among retail investors.
Nevertheless PwC, the consultancy firm, predicts that assets under management will surge from $64tn today to more than $100tn in six years’ time. PwC’s report also singled out certain types of fund houses as likely to grow rapidly and hire new staff in the next five years.
Recruiters and business schools notice an uptick in demand for investment management staff, while sales, marketing and compliance functions are hiring strongly across the financial sector.
“We’ve got significant meta trends pushing cash flow towards us,” said Elizabeth. But she said that the fund industry has a “trust deficit”, noting that investment firms are the least-trusted part of the already damaged financial services sector as a whole.
“Trust is highly relevant to the long-term sustainable quality of the investment management industry,” she said.
She highlighted the threat of online fund management firms, saying that customers are now more willing to place their trust and assets in crowdfunding sites than at large financial institutions. “They would rather take advice and put their money into crowdfunding schemes with individuals they’ve never seen than a financial advisor,” Elizabeth said.
But there remains significant growth in the fund industry, which for candidates with the right qualifications is ripe for the picking. Allianz GI has expanded its number of investment professionals in areas such as emerging market debt, multi-asset investing and infrastructure debt.
The German fund house, part of the Allianz insurance group whose sister fund is Pimco, the blockbuster fixed income manager, now employs more than 2,600 people.
It has achieved strong sales growth after launching a strategy last year to streamline its business. Net third-party inflows at Allianz GI reached €3.1 billion in the first half of 2013, up significantly from €500 million during the same period in 2012. Its solutions business inflows increased from €800 million to €4.8 billion over the same period.
MBAs and CFA holders may be well placed to secure careers at the German giant. Elizabeth said that values are now a huge part of the firm’s culture.
“We have values at the heart of our performance culture – your incentives, promotion and everything else is based not just on the outcomes, but how you behave, the way you treat clients,” she said during her talk on the Future of Finance – an initiative designed by the CFA Institute to reshape the financial industry to focus on trust and ethics. “That’s what the CFA initiative on the future of finance is all about.”
CFA – chartered financial analyst – qualifications have been redesigned to cater to this culture shift. Between 10% and 15% of the CFA curriculum is now focused on ethics, according to Kate Lander, head of education for EMEA at the CFA Institute.
Jacques Olivier, director of finance programs at French business school HEC Paris, said that his MBA students applying for jobs in the financial sector are increasingly being challenged in interviews on ethics, compliance and regulation.
Ethics and corporate responsibility are now a compulsory learning component for all of HEC’s MBA candidates. A course on ethics and compliance is also taught in collaboration with the CFA Institute.
Elizabeth said that as a firm, Allianz GI is involved in a lot of financial training, and contributes to financial education projects.
“We have an economic and a social reason to rebuild trust in our industry,” said Elizabeth.
But PwC predicts that three specific types of fund companies are most likely to grow rapidly and take on new staff in the next five years: fund houses operating in Asian regions, Central America and Africa; passive fund providers, which track an index; and “alternative” houses that specialize in private equity, property or hedge funds.
However, Allianz GI reduced its staff by 150 in a strategic overhaul last month.
Student Reviews
Cultural experience
I have met the most competent and diverse batch in this school. These people not only thrive on their own but also makes sure that you are doing it with them. The professors will take your had and walk you through all milestones and make sure you are not left behind. I have found their extracurriculars extremely engaging. There was always a room to have social life after academic life. The only hindrance is the location of the school, it is slightly outside city and living in city is expensive.
Internationality and diversity of opportunities
About my programme I would say it is very international and flexible: we have the opportunity to choose exactly the courses we want. But at the same time, the frame of the campus is crucial in students' life and enable us to create friendships.
Great selection of people
While HEC's MBA is highly selective, I really enjoy the type of people HEC's selects to make sure everybody gets the best out of their MBA experience and networking opportunities. Not only it's an incredibly diverse pool of people (~60 nationalities) but most importantly they make sure to let in friendly empathic and curious people.
Best in France for Grande ecole
A prestigious business school. Languages are important. It is better to have a scientific baccalaureate with excellent grades in high school and good assessments.
The courses are well designed as per the latest trends and practicality of learning in stressed upon. Overall, a very good experience.
Diversity and quality of fellow students
Very international and interesting place to be and opens a lot of opportunities, however the administration is very french and facilities are subpar (gym, classrooms) meaning the academic affairs is pretty much useless and lastly we are graded on a curve which can create a toxic environment because of the competition. With that being said the pros outweighs the cons by far.
The quality of the teachers, the campus, the clubs
The school is very international indeed, we have courses with international students and share things with them within the extra academic life (in the social clubs especially). We have great career prospects if we prepare ourselves well - however, the global curriculum is still very finance-oriented, which is a pity for other interesting domains of the company world, which does not rely on finance only. The social clubs are good practice for the management and for now, are quite independent.
HEC Paris awaits you
HEC Paris is really a nice place to do a master's in business. Many classes are useful and interesting (corporate finance, financial accounting, contract law…), some are less - but the curriculum is to be reviewed in the year to come. Regarding the student life, it is incredible, with about 130 clubs, lots of great parties with even greater people. The Jouy campus offers a lot of opportunities to do sports, and you can breathe fresh air every day. HEC also helps a great deal to find an internship or a job.
A dream institute
Enrolling in the HEC MBA was by far the best decision I made for myself. The people and faculty are great, with lots of opportunities to meet people and expand your horizons. Very nice campus where I have had some good running sessions.
The alumni network is superb and very helpful. It also has a good support system for entrepreneurs. Would definitely recommend it!
Good choice for a career boost
The classes were extremely practical and relevant to the current challenges that businesses are facing. You have access to a wide range of professionals and good career prospects once you leave the university.
Cultural experience
I have met the most competent and diverse batch in this school. These people not only thrive on their own but also makes sure that you are doing it with them. The professors will take your had and walk you through all milestones and make sure you are not left behind. I have found their extracurriculars extremely engaging. There was always a room to have social life after academic life. The only hindrance is the location of the school, it is slightly outside city and living in city is expensive.
Internationality and diversity of opportunities
About my programme I would say it is very international and flexible: we have the opportunity to choose exactly the courses we want. But at the same time, the frame of the campus is crucial in students' life and enable us to create friendships.
Great selection of people
While HEC's MBA is highly selective, I really enjoy the type of people HEC's selects to make sure everybody gets the best out of their MBA experience and networking opportunities. Not only it's an incredibly diverse pool of people (~60 nationalities) but most importantly they make sure to let in friendly empathic and curious people.
Best in France for Grande ecole
A prestigious business school. Languages are important. It is better to have a scientific baccalaureate with excellent grades in high school and good assessments.
The courses are well designed as per the latest trends and practicality of learning in stressed upon. Overall, a very good experience.
Diversity and quality of fellow students
Very international and interesting place to be and opens a lot of opportunities, however the administration is very french and facilities are subpar (gym, classrooms) meaning the academic affairs is pretty much useless and lastly we are graded on a curve which can create a toxic environment because of the competition. With that being said the pros outweighs the cons by far.
The quality of the teachers, the campus, the clubs
The school is very international indeed, we have courses with international students and share things with them within the extra academic life (in the social clubs especially). We have great career prospects if we prepare ourselves well - however, the global curriculum is still very finance-oriented, which is a pity for other interesting domains of the company world, which does not rely on finance only. The social clubs are good practice for the management and for now, are quite independent.
HEC Paris awaits you
HEC Paris is really a nice place to do a master's in business. Many classes are useful and interesting (corporate finance, financial accounting, contract law…), some are less - but the curriculum is to be reviewed in the year to come. Regarding the student life, it is incredible, with about 130 clubs, lots of great parties with even greater people. The Jouy campus offers a lot of opportunities to do sports, and you can breathe fresh air every day. HEC also helps a great deal to find an internship or a job.
A dream institute
Enrolling in the HEC MBA was by far the best decision I made for myself. The people and faculty are great, with lots of opportunities to meet people and expand your horizons. Very nice campus where I have had some good running sessions.
The alumni network is superb and very helpful. It also has a good support system for entrepreneurs. Would definitely recommend it!
Good choice for a career boost
The classes were extremely practical and relevant to the current challenges that businesses are facing. You have access to a wide range of professionals and good career prospects once you leave the university.
