1/7/17

I have an internship offer for a top IM Firm (PIMCO/Wellington), and am wondering if these are still good places to begin a career. I understand the outflow of money from active to passive,as well as shrinking fee structures, but am not too familar with the intricacies of the trend beyond that. Are these TOP asset managers going to be shrinking/struggling over the next few years? Also, why is this trend affecting only a few of the largest Asset Managers and not others? I heard Fidelity/Putnam had huge layoffs but haven't heard anything of the sort from Wellington/BlackRock/PIMCO.
Would appreciate any advice for a confused undergrad.

Comments (2)

1/7/17

In the short term, you'd be insane not to accept a research internship offer from a place like Wellington. These sort of firms are incredibly selective (their incoming associate classes are usually in the single digits) and you may not get a chance like this again.

In the long term, yes, the Asset Management industry is facing secular headwinds and nobody knows quite where the bottom will be. Active investing won't disappear by any means, but it's definitely not the 80's anymore.

That said, even if you're worried about your long term prospects, take the internship anyways. A name like Wellington or PIMCO will be enough to get you an interview pretty much anywhere during full-time recruiting (except maybe for banking, where FT recruiting essentially no longer exists), and it'll also get you a good look by MBA admission committees if that's your plan going forward.

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1/8/17
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