How can an Accounting major break into AM?
Hey everyone. I'm an accounting major at a non-target with a 3.5 GPA in a major Canadian city.
I've always been interested in finance and have been reading this forum for years but I've never genuinely committed to trying to break in. My original plans were to start at a Big 4, maybe try M&A tax or valuations/deals advisory if I was still interested in finance further in my career. I've secured internships with one of the larger Big 4s of my city (decent network at the firm, family + friends are partners) along with my GPA basically assures me a FT position once I graduate.
Though I realize now that I may not be as interested in this career as I thought. I've always loved the idea of working in finance but specifically market and investing-related positions, not corporate finance and M&A. Investing has been one of my major hobbies and I read about finance and economics basically every day just for fun.
Now I feel like I've missed the boat to make my attempt and the chances of getting into a position in AM is hopeless. I've looked at some of the Big 5 bank positions and they have AM undergrad positions, though they seem to be highly coveted and prefer finance/statistics/economics/math majors than accounting.
Does anyone have any advice on how I can plan out my moves to break into AM?
Would AM even be a good industry to get into? I hear a lot of dangers of passive VS active or with AI taking over. Would this be a smart idea to even try and break into this industry?
If so, would getting into audit, transferring to deals/valuations/CF and then getting a CFA give me a chance?
Would Big 4 experience then an MBA work? I haven't heard excellent things about MBAs in Canada.
Lastly, I'm still in University right now but I'm finishing soon, would registering for a double major in finance+accounting (extending my studies by a year) be an idiotic move?
Thanks!
I wouldn’t plan out any moves until you understand the industry and what you’re actually getting into. It still sounds like you don’t know what to do as a career and that’s fine. Research the industry more and finance in general. Figure out what you want to do and then make a path. No use in coming up with hypotheticals unless you have more intent. You’re miles behind other students in terms of recruiting at this point, especially in Canada where there are less opportunities making it more competitive.
I agree with you, I'm not looking for a hard plan because this is years out, I'm more asking open-ended theoretical questions. Like theoretically, how realistic is it to even move from Big 4 accounting into finance? If it is possible, what would be the path one would take that would give the best odds?
The first question I asked was also the main question I was wondering too.
Is this still a viable industry to go into with the big loss of headcounts at AM firms, new tech, move from active to passive, etc. Will it continue to shrink after this recession? I know people who have made it into the industry from my school but only very few with the network they had before coming to University. Is it even a viable career path to make the attempt or will the decreasing headcounts get worse? Fidelity recently had a surprisingly large increase in headcount, but almost every other asset manager including some of the Big 5 are letting a lot of people go.
The asset management industry is largely comprised of people who are really good at asking questions and finding answers to them. If this is the industry you really want to work in then why haven’t you dug deeper into these questions and found some answers? Not trying to be rude but it’s a reality check.
Theoretically is it possible. Sure. So is falling though a chair because all of the atoms line up perfectly. Do some LinkedIn stalking and see if others have followed a path to the one you’re describing. If they haven’t, someone is always the first in everything.
Again, you should have an opinion on how the market works and the balance between active and passive. More impressive questions would be analyzing the mechanics of “passive” management and seeing where it could break the market. Where is the equilibrium? Do you see where I’m going with this? It’s not an exact science and of course people will have varying opinions. Just know active management isn’t going anywhere and if you really want a job you will be able to get one, even in a shrinking industry.
Understandable, I see what you're saying and you're right. I really appreciate your comments and responses!
This is an incredibly interesting question to me. Check out Michael Maubossin's work on tackling this question - he is one of the most respected minds in investing and he has tons of practical research papers on this.
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