|Beth Healy, Globe Staff|
Boston’s investment business is back in a familiar place: awash in money.
To the surprise of many, 2013 turned out to be a huge year for the stock market, marking a psychic return to better times for the city’s large community of money managers. Many now have record assets under management after stocks surged nearly 30 percent last year and created hundreds of billions of dollars in new wealth.
“It snuck up on them,’’ said
Even as the year progressed, the market’s upward streak came with little celebration. The year was so dominated by worries over the shutdown of the US government and a stubborn economy that there was none of the exuberance that often accompanies a big year in the market.
“There was very little euphoria,’’ said
Meanwhile, Americans’ retirement nest eggs quietly recovered, and the investment accounts of schools, charities, and pension funds fattened.
These money managers didn’t grow in lockstep with the stock market because they also invest in other types of instruments. And bonds, for example, had a difficult year. Even so,
“It was a good year,’’ said
A bit of swagger is a marked change from the years after the financial crisis of 2008, which not only dealt investors and money managers stunning losses, but also threw a blanket of caution over the industry.
Indeed, despite one of the greatest bull markets of all time since 2008, hiring in this region’s finance businesses is still sluggish. According to the Federal Reserve Bank of
“Massachusetts has yet to post year-over-year job gains in finance and insurance in 2013 — and in fact has not seen year-over-year growth in the sector since August 2007,’’ said
A case in point is
Fidelity said its investment business is strong and growing globally, but that its managers “regularly review resources to ensure they are aligned.’’
Even so the financial sector remains one of Boston’s largest employers. And hiring may at last be starting to show signs of ticking up, according to Thomson, the recruiter. Firms stayed cautious during the long, slow economic recovery, he said, and that caution is likely to show up in bonus checks as well.
While investment managers are paid on the growing piles of assets of they manage, top executives haven’t forgotten the excesses of 2007, Thomson said. “They want to make sure  is not an anomaly of a year.’’
|Copyright:||(c) 2014 Globe Newspaper Company|