9/23/11

I'm looking into a Private Banking Analyst position at J.P. Morgan. I'm a senior at a semi-target, and I've worked in PWM before.

I'm curious to know:

-How does private banking differ from general wealth management (besides just the pure dollar amount needed to be a client)?

  • How actually "analytical" would an analyst position in private banking be? Would I be "supporting" higher-ups or selling more often than managing asset allocation, running performance reviews, and generally staring at Excel?
  • Would this be a good transferable position into other areas of asset management (i.e. portfolio management, hedge funds, institutional fund/mutual fund management)?

Thanks

Comments (13)

9/23/11

1) Doesn't differ at all besides investment options
2) Not analytical at all
3) No you never see someone from PB go to portfolio management, you could work at as a salesman for an AM shop but definitely not as a PM. If that's your goal you'd have to start in IB or ER.

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9/23/11
FutureBanker09:

1) Doesn't differ at all besides investment options
2) Not analytical at all
3) No you never see someone from PB go to portfolio management, you could work at as a salesman for an AM shop but definitely not as a PM. If that's your goal you'd have to start in IB or ER.

Lets see Future Banker, you're wrong on all three accounts. To be honest, here's how it goes:

1) It allows you to better serve your client's needs. It all depends on your client's needs and the shop you are at.

2) The answer is that it depends on the structure of your account and clients. I know people in PWM that have a high degree of analytical basis and I know others that have no need as their basis is managed money. That said, it all depends on your client base. As to the second part, it depends on who you work for. That's the straight up truth.

3) The answer is an astounding yes, however, it is a yes with a caveat. That caveat is pretty simple... either you work for a team that directly manages their own discretionary money or not. If you work for a group that has a discretionary account base, you can segue into being a PM more readily than you would expect, especially if you can site performance.

Hope that helps.

9/24/11
Frieds][quote=FutureBanker09:

3) The answer is an astounding yes, however, it is a yes with a caveat. That caveat is pretty simple... either you work for a team that directly manages their own discretionary money or not. If you work for a group that has a discretionary account base, you can segue into being a PM more readily than you would expect, especially if you can site performance.

Hope that helps.

Thanks for that... Are you referring to discretionary money as in the client fully entrust to the firm to invest as they like as opposed to needing to send out investment suggestions?

Is the PM of funds of funds much different than PM of individual securities?

9/23/11

PM me

9/23/11

There are portfolio managers within the private bank doing mostly fund of funds work. It's incorrect to say that you never see people from PB going to portfolio management when in fact it's quite the opposite. Not all PB roles are sales roles, some are highly quantitative.

9/24/11

Plus a random questions, I notice that in Asia most private bankers are girls? Is that the same in the US/UK?

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9/24/11

No. I was at a top PB this summer and rest assured, 99% of the RMs were men.

9/24/11
Walkio:

No. I was at a top PB this summer and rest assured, 99% of the RMs were men.

How was your experience? Besides the lack of distractions in the office haha

9/24/11

Discretionary is a term used to discuss who has the ability to make the investment decisions. In Asset Management, if you give your money to a financial advisor/hedge fund/private equity fund/etc., unless you explicitly give that person the authority to invest in a manor they see fit, you are the ultimate person in charge of what happens in your account. This is why, when you invest in PE and Hedge Funds, you agree to give away any authority to invest - it's written into the subscription documents.

To further illustrate... You have 10MM in your account with a broker at say... UBS. He has an idea that he thinks is a good play. Unless you have that money in an account that he has agreed to take a direct fiduciary responsibility in managing it, he would need to call you and discuss the idea with you. However, if you agreed to let him manage the account, he could buy and sell as he wants. You traditionally see this when you have brokers that have specific strategies that they use (ie. Uncovered S&P Options trading strategy, Custom EM Portfolios, I know a guy with a Volatility management strategy that he uses for clients with extremely concentrated positions, etc.).

Hope that clears things up.

9/25/11
Frieds:

Discretionary is a term used to discuss who has the ability to make the investment decisions. In Asset Management, if you give your money to a financial advisor/hedge fund/private equity fund/etc., unless you explicitly give that person the authority to invest in a manor they see fit, you are the ultimate person in charge of what happens in your account. This is why, when you invest in PE and Hedge Funds, you agree to give away any authority to invest - it's written into the subscription documents.

To further illustrate... You have 10MM in your account with a broker at say... UBS. He has an idea that he thinks is a good play. Unless you have that money in an account that he has agreed to take a direct fiduciary responsibility in managing it, he would need to call you and discuss the idea with you. However, if you agreed to let him manage the account, he could buy and sell as he wants. You traditionally see this when you have brokers that have specific strategies that they use (ie. Uncovered S&P Options trading strategy, Custom EM Portfolios, I know a guy with a Volatility management strategy that he uses for clients with extremely concentrated positions, etc.).

Hope that clears things up.

Thanks.

9/26/11

Thanks whoever threw shit at me. If you look at the paths of any mutual fund manager, or asset management firm like Wellington's portfolio managers, you will see they pretty much all came up through IB or through equity research. The one exception is people who were in some specific industry i.e. energy then got an MBA. You will be doing fund of funds type stuff. It's the same as welath management only your options are bigger, i.e. 10mm may gave you access to HFs or PE firms you wouldn't normally. Other than that it's the same hustle. To be a portfolio manager you would really have to have in depth modeling experience that would only be gained through IB or ER

9/26/11

FutureBanker09 - While in general I agree with you that it's an uphill battle to transition from PB to portfolio management, it definitely can be done, especially if your PB experience is with a reputable PB analyst program like JPM, GS or CS as opposed to getting PB experience at places like ML, MSSB or UBS where you are doing a lot of cold calling.

As with most everything else, you get what you put in - if you work hard, do some things to separate yourself from the crowd (CFA, etc), there is no reason why someone can't make the transition.

9/26/11
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