The widespread redundancies now gripping the City of London has already claimed victims in the historically impervious fund manager profession, high-profile investment adviser Darius McDermott claims.
McDermott, the Chelsea Financial Services managing director, says evidence suggests fund houses are beginning to purge staff across all levels, including those directly running money.
While Fidelity and Threadneedle are believed to be among a number of companies to be cutting lower level staff, McDermott pointed to the silence surrounding Cara MacGregor’s recent departure from the HSBC multi-manager team as sign fund houses are willing to make managers redundant.
McDermott expects a raft of fund manager changes in coming months, especially among multi-managers, in response to the current economic downturn.
He also expects more managers to go as fund houses increasingly look to absorb smaller offerings into larger vehicles.
“In the light of such controversial changes one might wonder if asset managers are using the current gloomy climate of incessant negative news flow to shuffle their various cabinets around,” he says.
“We can only hope that this shifting around of personnel will lead to stronger teams emerging once markets have stabilised.”
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