Money managers are working hard to entice young people to join their firms amid on ongoing talent war, and are adding or expanding summer or yearlong internship programs with an eye to luring diverse talent, offering flexible work arrangements, developmental programs and mentorship from senior employees.
Attractive perks with internship programs often include free lunch, paid transportation to work, college tuition reimbursement and student loan refinancing, managers said as part of the 2022 Best Places to Work in Money Management survey.
"Building the team with the current and next generation is a pipeline strategy for us," stressed Mary Ellen Stanek, managing director and co-chief investment officer of Baird Asset Management and president of Baird Funds, in an interview. Baird Asset Management, Milwaukee, placed No. 3 among money managers with 100 to 499 U.S. employees in the BPTW survey.
The manager, a division of Robert W. Baird & Co. Inc., has had an internship program since 2014 and hosted total of 55 interns over that eight-year period. Of the division's current employees, 15% started as interns, said Warren Pierson, also a managing director and co-CIO of the asset management unit.
In 2022, Baird Asset Management had 11 summer interns and across all of Baird's units, a total of 236 interns worked at the firm, including the asset management unit. In addition to working with universities, including the University of Wisconsin-Madison, Marquette University and Emory University to advertise the firm's internships, Baird also has a one-day-a-week program for high school students during the school year.
As other money managers said, Ms. Stanek said Baird is searching for students of diverse backgrounds as well as for traditional candidates, "noting that diversity, equity and inclusion is an opportunity to cast the net wider."
Baird Asset Management had $121 billion in assets under management as of Nov. 30.
Ninety One Ltd. began its paid summer internship program for undergraduate college students in Cape Town, South Africa, in 2017 and later expanded the program to its London and New York offices for a total of up to 19 students each year.
The company also runs a year-round program for six to eight graduate students in the U.K. and South Africa.
The company offers internships as a way to attract aspiring talent to the money management industry with a focus on women and people of diverse backgrounds, said Philip Anker, CEO of the Americas in an interview from his office in New York.
"What young people want is an opportunity to make a difference in the industry. They want to move the needle and we want to expose them to having a flexible work schedule and a good culture. We stress that diversity is very important and should be celebrated," Mr. Anker said.
Ninety One, a winner in the BPTW medium category, 50-99 U.S. employees, managed a total of $148 billion as of Sept. 30.