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The CBI is predicting as many as 11,000 financial services job cuts by June. Asset managers, however, are still hiring.

Today's survey from the CBI and Pricewaterhouse-Coopers suggests employment in the financial services industry is falling at the fastest rate since 2000. But while all around are lopping staff, fund managers are recruiting at a rate of knots.

The survey reveals that, on balance, 88% of asset managers said they'd supplemented staff numbers in the past three months, and that 60% plan to add further to them in the three months to come.

By comparison a balance of 18% of respondents in the securities trading arena said they'd reduced staff over the past three months, and 28% plan to make cuts in the next three months.

Asset managers' athleticism

What makes asset managers able to withstand the credit crunch?

Not all have proven immune. Morgan Stanley's asset management business posted a $160m loss in the first quarter, due to investments in real estate and structured investment vehicles. New Star Asset Management’s funds under management have fallen £2.8bn since the beginning of this year.

However, Goldman saw its net revenues in its asset management arm leap by 23% to $1.3bn and Lehman’s revenues rose by 49% to $618m.

Patrick Morrissey, group managing director of search firm Sheffield Haworth, says some funds are well positioned to make the most of rivals' problems: “Some of the larger asset managers, who managed their business well during the good times and may not necessarily have covered certain asset classes previously, now feel it is a good time to attract people or pull them out of organisations that are having major problems.”

Indeed, Roger Yates, chief executive of Henderson Global Investors, which posted a £109.6m profit last year, told Financial News: “We are actively looking for those opportunities where we can lift out teams or make bolt-on acquisitions that meet our criteria.”

Chris Manfield, head of European asset management at search firm Whitney Group, says boutiques are hiring: “There are actually quite a number of organisations who have built up a war chest of money who are now seeing it as a fantastic opportunity to pick people up.”

However, research from asset management search firm Godliman paints a grimmer picture of current recruitment trends. In January and February, recruitment of equities fund managers slipped 43% compared to the same period last year, while fixed income fell 39% and institutional sales fell 33%.

And figures from asset management consultancy CREATE suggest appetite for moving jobs has dwindled. Amin Rajan, CEO of the firm, says: “Turnover reached a peak in 2006. Our research suggests it fell sharply last year, and we would expect it to continue to drop this year.”