Kaizen Recruitment Hosts Funds Management CEO Roundtable – Sydney
Kaizen Recruitment was proud to host our Funds Management CEO Roundtable in Sydney, bringing together senior leaders from some of Australia’s most prominent investment management firms.
Moderated by Brett Jollie, the forum provided a valuable platform for open dialogue on the most pressing challenges and strategic opportunities shaping the future of funds management.
Attending firms included:
Hearts & Minds Investments, UBS Asset Management, Fidelity International, Janus Henderson, Northcape Capital, Magellan, GQG Partners, and AllianceBernstein.
1. A Challenging Environment for Active Managers
The consensus was clear: the past three years have been among the most difficult the industry has faced in recent memory. Actively managed funds continue to experience sustained outflows, driven by consolidation and insourcing within the superannuation sector, market concentration, fee compression, and the continued growth of passive/index strategies.
These structural shifts are redefining the competitive landscape, demanding that fund managers evolve faster than ever to meet heightened investor expectations. Despite differing strategies and asset classes, all firms present shared common challenges:
• Mounting margin pressure
• The urgent need to manage costs and modernise operating models
• The strategic importance of diversifying revenue without adding unnecessary complexity
Looking forward, it was acknowledged that the future structure of the Australian funds management industry will look significantly different within 5–10 years. Scale, performance, brand strength, operational efficiency, and effective distribution will be critical determinants of success.
2. Talent Strategy: Generalists, AI, and the Human Capital Evolution
Human capital strategy emerged as a key focus, with CEOs discussing the need for more agile, cross-functional talent.
• Many firms are seeking professionals who can wear multiple hats, often covering two or more functional areas.
• There is a move away from process-centric backgrounds, such as custody, towards individuals who are adaptable, commercially minded, and capable of evolving with the business.
As one CEO observed: “We don’t hire for narrow skillsets. We need people who can think beyond their silo and grow with the business.”
The rise of AI and automation in fund operations also generated robust discussion. While these technologies bring efficiency gains, they also place greater emphasis on upskilling, reskilling, and finding the right talent to complement technological innovation.
Importantly, leaders agreed that supporting these high-performing professionals — through fair remuneration, flexibility, and career development — is essential as expectations rise and resources tighten.
Despite progress, gender diversity was acknowledged as an ongoing issue in the industry. Many participants expressed a renewed commitment to driving structural change to improve representation and inclusion.
3. Leadership Pressures and EVP Differentiation
The personal toll of global leadership responsibilities was laid bare, with 2am calls now a regular occurrence for many Australian-based Country Heads.
This led to a broader conversation about Employee Value Propositions (EVPs), with domestic fund managers in a strong position to compete on sustainability, work-life balance, and culture.
In a talent-constrained market, the ability to offer meaningful flexibility and clear purpose is emerging as a critical competitive edge.
4. Consolidation, Distribution and Strategic Agility
With industry pressures intensifying, consolidation remains a key theme. CEOs agreed that fund managers unable to achieve scale, build compelling distribution strategies, or diversify their revenue streams, will increasingly struggle to remain competitive or independent.
The growth of Exchange-Traded Managed Funds (ETMFs) was flagged as a significant structural opportunity for firms with the operational readiness to capitalise on it.
There was also a deep dive into the decentralisation of ratings houses and the proliferation of wholesale asset consultants. These players now play a major role in shaping capital flows — with many managers treating them as strategically critical stakeholders. However, there was general agreement that the current volume of consultants is unsustainable and likely to consolidate in the coming years.
5. Private Markets and Regulatory Evolution
Private markets — particularly private credit — remain a high-growth area. CEOs welcomed ASIC’s recent efforts to lift standards and increase scrutiny in this maturing segment.
With investor interest continuing to rise, reputational risk remains a key concern.
“Just one failure in private credit could set sentiment back years,” one participant warned.
As such, strong governance, transparency, and robust client engagement are essential for long-term sustainability in the space.
6. Navigating Macro Uncertainty and Business Model Evolution
Global macro factors — including U.S. political risks, shifting geopolitical dynamics, and the threat of new tariffs — continue to shape investment decisions and client behaviour.
In this volatile environment, firms are re-evaluating how they build resilience. This includes:
- Balancing outsourcing vs internalisation
- Diversifying beyond the consolidating superannuation sector, with growing interest in the intermediated and retail channels
- Pivoting business models to be leaner, more responsive, and more aligned with investor expectations
A consistent theme emerged: fund managers must evolve or risk being left behind. The firms best positioned for the future will be those that can deliver clarity of purpose, strategic focus, and operational agility without adding excessive complexity.
Final Thoughts
Kaizen Recruitment is honoured to facilitate these rare and valuable conversations at the highest levels of the investment management industry.
We extend our sincere thanks to all participants for contributing to a thoughtful and strategic dialogue. As a trusted partner, Kaizen remains deeply embedded in the sector helping clients and candidates navigate complexity through insight, connection, and a forward-looking perspective.
We look forward to hosting our next CEO Roundtable and continuing to support the evolution of the Australian funds management landscape.
Get in Touch
Based in Melbourne and Sydney, Kaizen Recruitment specialises in financial services recruitment across funds management, wealth management, superannuation, investment consulting and insurance. If you’d like to discuss candidate career drivers and the current state of the market within the financial services recruitment landscape, feel free to reach out to us with your details below.
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