From Accounting to Asset Management?

What is my objective?
My desire is to work in the Asset Management industry as an analyst.

Who am I?
I am 23 year old individual who has recently graduated from a non-target University in the United Kingdom with a mediocre GPA (low 2.1) in Accounting and Economics.

What am I doing right now?
I am working at an accounting firm in London to become a charted accountant (ACCA qualification; equivalent to CA in North America).

What is my plan?
I hope to clear all ACCA exams by September 2017 (I have seven exemptions) and then focus on finishing the CFA by the time I have completed by training contract. During these three years I will also work on my financial modelling skills as well as keeping up with finance related news.

My question/s to you…

Does this look like a good plan?

Could you provide me with things to do to enhance my CV other than what I have stated above?

Is 26/27/28 seen as too old for asset management?

Thanks for all the help in advance (posted the same question on AF, too).

 
Best Response

Before answering any of your questions, the first issue I would raise is how do you know you want to work in the Asset Management industry? Based solely on the information provided, you seem to have a passing fancy for the industry as it appears you didn't build any financial modelling skills. If it is indeed a passing fancy, then any plan you may have is not a good plan and will likely not work. Too many of the kids on this board (and the real world for that matter) say they want to do some type of finance without any understanding of the industry and what a career in it entails. So, my advice on this point is to look in the mirror very carefully and ask if you REALLY want to do this. After that, let's get to answering your questions:

1) Is this a good plan? It's fine on the whole. The major thing missing in there is networking which is more important than any of the other items you've listed (yes, even the financial modelling skills that you do need to develop). This is because even if you develop the most awesome financial modelling skills ever, it won't help if nobody will give you the time of day. With regards to the ACCA and CFA, I'm guessing you need the former for your job. It definitely helps insomuch that it demonstrates a strong understanding of accounting, but I imagine it will be tough to do with the CFA at the same time. So all-in-all, fine plan, just be sure to network intensively over the next few years or you still won't have a snowball's chance in hell.

2) Recommendations for your CV. Assuming you're at a Big4 or at least an accountancy firm with a full service line, try to get into the TAS group or whatever it is they call it at your shop. If you are at a Big4, expect a lot of pushback, but keep on trying because practical work experience applying finance knowledge is more useful than anything you can do from an individual perspective for your CV.

Also, if you're a poor bloke like the rest of the students you typically see, I'm guessing you won't be able to finance a personal trading account (also difficult with Big4 compliance, though not impossible). Instead, open one of those mock trading accounts and REALLY try to do a good job in terms of developing an investment thesis and generating (paper) profits. This demonstrates both interest and potential skill if you do a good job. My opinion is that if you are fortunate to have enough money to play around with, use that instead. After all, if you're going to put in the work anyway, might as well make some money while you're at it (and don't be a chef who is unwilling to eat his own cooking).

3) 26/27/28 is not too old for asset management. But don't expect this to be the land of milk and honey. If you're here for immediate gratification from money or models & bottles, you're going to be sorely disappointed (unless you're friends with that Moore PM). Assuming you're looking to get into a long-only of one form or another, they typically have longer investment horizons and you should be the same in character when trying to find a place to fit in. If you're one of those fast money types, asset management will probably be uncomfortable for you from a career perspective (different at hedge funds obviously).

Bottom Line: Look deep, deep into your very young and naive soul and ask yourself if you actually want to get into asset management or if you want models, bottles, and $10mn in the bank (hint: this field largely doesn't provide the latter). If the former, work hard, network like a ninja, kick ass - and you will probably get at least a chance to break into the field.

Cheers and best of luck!

 

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