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 a year dominated by replacement recruitment, the major Australian firms are now gearing up for growth. Perpetual – which expects its profit for the six months to end-December to triple compared to a year ago – should be at the head of the hiring pack.

“Most of the conversations are around plans for February to April 2010 and onwards. Firms that are able to line up talent prior to bonus payments in 2010 will have a first-mover advantage over those that adopt a ‘wait and see’ approach to the bonus season,” according to Anton Murray, director of Anton Murray Consulting.

In recent months, the majority of funds management hires have been for distribution roles, both institutional and retail, according to Jordan. Murray agrees: “Interest in strong candidates with a distribution focus seems to be returning, especially if they have local client contacts.”

Back and middle-office recruitment is starting to increase, and should pick up even more in 2010. “The funds management front-office guys have been having quite a positive 2009, indeed the best in many years, so the operations and middle-office teams are being bolstered to support this growth,” says Murray.

Jordan holds out hopes for analysts. “Money is flowing back into equities, so hopefully soon the fund managers will begin to hire analysts again and potentially also new funds will begin to be seeded.”