Hello,
I have interests in Asset Management and have been thinking about pursuing a CFA designation. I have researched the types of roles CFA's typically have i.e research analysts, Buy-sell/side etc.. yet I would appreciate if a CFA holder would provide some perspective on how the CFA has supplemented their career in AM (pros and cons) and specific jobs one can have!
Talk soon,
BG
The charter is the most difficult designation in finance. Sit for it at your own risk. It will not allow you to break in alone, but it will give you a huge leg up on those who don't have their charter.
...
Lol I got a finance undergrad and msf. Still had to put in 150+ hours to pass level 1, alrdy started studying for level 2 and will put in ~300 hours. Might not be the hardest designation but don't underestimate it.
When do people usually take their CFA? and why, is it required for the job?
It is never required, but never looks bad to have. My firm lists exactly three designations on employee profiles, The CFA Charter, Ph.D. and M.D. I think it is saying something that we won't list a MBA from HBS, but will list charters for everyone.
I think there are two variables that effect the value of the CFA charter: geographic location and the various subsectors of finance.
In the case of geography, the charter means different things in different countries. In the case of the US, the charter is mainly a differentiator in various asset management roles (equity, fixed income, hedge funds, etc.), sell side research and wealth management. In the example of Canada, the CFA is held by a much broader group of professionals. Investment bankers, private equity professionals, commercial bankers, real estate investors and a whole lot else hold the charter.
As it relates to professional sector, some fields (and specific companies in particular) can make the designation a requirement to progress, while others view it as entirely meaningless. You have to figure out if your desired path puts the charter in the "required" field for your own development.
Speaking as charterholder, the one thing I will say it has done for me is give me optionality in my career. I originally did the designation as I wanted to learn more about finance post-undergrad, and differentiate myself from the horde of other business undergrads in the job market. I don't think it's a silver bullet for my career development, but I do think lots of people understand the commitment it takes to earn the designation, and often that respect can make people give you the benefit of the doubt when you're making career transitions and you don't have the perfect resume for a new role you're seeking.
Based on the cost and benefit analysis, I think you should pass the level 1 and call it a day. Use passing level 1 to get interviews and also put together a research report as a work sample to be used in the recruiting process. Once you get the job, you can take time to pass the remaining level 2 and 3; and also get the work experience requirement to become a CFA.
The last thing you would ever want to do is to focus too much on CFA exam. 1) Get all the level 3 passed while completely ignoring other aspects of the recruiting process (i.e. networking and putting together research report), and 2) lying the local CFA community on the work experience to get the CFA charter (i.e. know a lot of people who did prime brokerage/back office work to be qualified as relevant work experience for CFA); resulting in stuck in the same job and/or failed to move into a proper equity research position.
Did my CFA Level 1. Didn't pass the level 2. Managed to get an equity research job. Moved to buy-side (business development role) and now back to sell-side doing IBD Coverage. Life comes with a lot of surprises. So don't assume that there is a path (i.e. CFA > Research > Hedgefund).
Don’t hedge funds look down on cfa?
It seems like more of a thing for firms that sell to retail like to lists.
HedgeFund is a pretty big group. Fundamental long funds do still look at CFA.
I'm Going to be doing sales and trading at a BB. I plan on graduating a semester early. Do you think it would be viable to use that semester(spring) to get my CFA before starting on the job?
LOLOLOLOL. The charter takes an absolute minimum of 18 months to complete, that's if you go in and take the December test cold and pass, then hit level 2 the following June and level 3 the year after that.
Seriously, do your homework. level 1 is offered in June and December, the other two levels are only offered in June. The recommended study time for each level is 300 hours+, and the pass rate for each level is generally under 50%. (and you have to pass to take the next level) A realistic timescale for getting your charter is 4-5 years, but only something like 19% of people who begin ever get it, and there are stories of people who sat for the exam every year for a decade straight without passing. Getting it in a semester is less realistic than using your spring semester to get a master's from a reputable school.
Bro who said anything about taking Level 2 in June.??? I recommend reading the content fully prior to laughing at someone's genuine desire for advice......also who invited you to my page to laugh at my expense anyway....right no one!
What's that practice or thing you should follow to do good on CFA? Starts with S?
Apply CFA knowledge to what jobs? (Originally Posted: 07/31/2011)
Hey folks,
What kind of jobs out there for which you could apply the knowledge that you gained in completing CFA?
I mean, the CFA has a lot of different info that will be applicable to finance jobs - but it's more of a rite of passage than an informational thing. But ER needs financial statement analysis, the portfolio construction/risk stuff is obviously good for a portfolio manager, the quant stuff from level II can be good if you're going into derivatives, etc.
But, in my opinion, it's just a filtering mechanism that has really lost its luster since so many back office types have it now (since back and middle office work fills the requirements) and now many firms consider it something you get after you have the job, whereas five years ago it was enough to put you in the job, especially from middle office (hence the glut of middle office workers with CFAs).
Portfolio Manager (the goal of a lot of CFAs) Equity Research Quant Roles (although CFA doesn't go too indepth in quant, I've seen some quants with CFAs) Institutional Sales (I've seen LOTS of sales people with CFAs)
Thanks a lot, greatly appreciated.
I guess CFA is well recognized in the industry, right?
It depends on the exact role you're applying for.. but overall, yes it is the most well respected designation in finance IMO.
This is a good link, you can see what roles CFA charterholder have by country, and the companies that employ them.
http://www.newcfa.org/#/professions
Schweser
CFA job mobility (Originally Posted: 10/20/2010)
I am a few months out of undergrad from a well-regarded (non-target) regional school and am currently working in a back office (operations) function at a F500 AM/insurance firm in the NY/NJ area. My duties included reconciling bank accounts, moving cash (they call it "forecasting") to cover client trades, and inputting client transactions in our record keeping system. All of these clients are invested in our mutual or stable value funds as a part of their company's retirement plans. It's not exactly a hub of financial activity.
I did not want to take an ops job, but coming out of school there just weren't many opportunities. I graduated top of my class with a BS in econ and did two internships in college, one at GS. I'm definitely worried about my career options because I am not developing any finance skills in my current role; I desperately want to transfer to the business side of the firm. I have been thinking about studying for the CFA in an attempt to make myself more marketable in future interviews. Do you think passing the Level 1 exam will impress people enough to allow me to move into the client-facing/revenue arm of the firm, or even just the treasury division? Obviously I'm not talking about becoming a fund manager overnight, but at least an entry-level analyst.
I was not a big fan. I always preferred the CFAi Materials. to Schweser
I've never heard of passing Level 1 of the CFA hurting anyone and if you want to go into AM or the like later on, you're going to need it anyway. If nothing else it shows that you're driven and it also shows a level of market/financial knowledge which would help since, as you said, you aren't getting exposure to the business side of things.
Passing Level 1 will definitely make you more marketable in asset management and should help you to get interviews. I'm a Level 2 candidate right now and I've gotten interviews that I probably wouldn't have gotten without having that on my resume. I've also noticed that a lot of my interviewers are CFAs, so they know how difficult the exam is and it provides a good conversation point. Studying for the exams is definitely time consuming, but I think if you want to work in asset management, it's worth it.
CFA Job listings? (Originally Posted: 01/13/2010)
I just enrolled in level 1 exam for June 2010. I've had an internship in P&C actuarial consulting, and two in web development. I'm a recent grad with an Actuarial Science major.
1)Are the job listings on the CFA website worth paying for access to? 2)Are there any entry level positions there?
Thanks all :)
what r u trying to get into? do it concurrently with MBA and transitioning into a different career
I do believe that the CFA website has a job board which might have some entry level positions. The CFA is a great designation to have, only you can really decide if it fits your career goals.
It'd be useless to me if there's no entry level positions.
1) no 2) no
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