Business development managers work hard for the money
They are the public face of a funds management group, and like portfolio managers, have much of their efforts rewarded on a performance basis. At the same time, they are highly regarded and bear the brunt of much industry humour. They are business development managers (BDM) but what do they do for the money they earn?
According to Financial Recruitment group executive director Peter Dawson, the role of the BDM has changed in the past few years away from the long running joke of them being prospectus or brochure delivery managers.
In fact, Dawson says most are professionally trained and educated with postgraduate qualifications and under the ground rules set out by the Financial Services Reform Act (FSRA), many are working through the Diploma of Financial Planning (DFP) program. Others with a more technical bent are undertaking courses such as a Masters of Finance.
But where they add real value, according to Dawson, is in the area of gaining a better understanding of the individual financial planner’s practice and where the planner wants to take it in the future.
“Those BDMs who have the skills can assist with strategic management issues, marketing strategy and, in particular, how certain marketing initiatives can add value to the practice. Specific related issues are client communications, such as newsletters and seminars covering how to run them, topics to be covered and supplying appropriate speakers,” Dawson says.
“BDMs add the most value to new advisers who need help in this area.”
However, Dawson says BDMs will also offer help in the areas of practice management as well as staff remuneration issues, with one BDM active in the industry supplying planners with an industry salary survey for comparison.
BDMs can also draw on the full resources of the fund manager itself in the areas of Web site construction and content, or to cover the more recent and contentious issues of privacy and a planner’s requirements under the FSRA.
In keeping with their increasing levels of education, Dawson also says that BDMs can provide insight into investment issues such as economic trends and the performance of individual asset classes.
Part of this includes the investment process and styles of managers and how they can be blended, as well as the use of model portfolios.
Given that BDMs have such a wide range of duties, Dawson says it is difficult to place a figure on the average salary for a BDM. In fact, it varies widely depending on the funds management house and the nature of the business.
Part of this is due to the fact that BDM work is performance-based and the ‘at risk’ component above the base salary can be paid in a variety of methods, including shares in the group and bonuses that fall outside most industry examinations of salary payments.
This has not stopped the growth or emphasis on the importance of BDMs, with a number of fund managers initiating mentor programs to recruit and train business development associates alongside BDMs. And with salaries in hold mode for the time being, this is probably an attractive aspect to the role.
AUTHOR
Jason Spits
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