The asset management industry has returned to the hiring of full-time staff – having got by on using short-term contracts for a year – as improved profitability boosted confidence to make longer term commitments, an investment management consultant has said.

Asset managers have become cautiously optimistic since September and have started to become more relaxed about recruitment thanks to climbing equity prices and overall improved profitability, according to Investit People, the recruitment arm of investment management consultant Investit.