IB to Multi-Asset Investment Group?
Been in IB for a few years and want to make the transition to a Multi-Asset solutions or investment group. I’d ideally be looking to work with macro data, fund selection across HF, PE, etc and a focus on a top down view of markets rather than security selection/financial analysis.
Wanted to see if anyone had some insight to whether this transition is possible without another role in between and where best to look? I see some multi-asset solution groups at the larger BBs and some asset managers but otherwise seems to be a small world.
I also do not have a CFA and candidly have no interest in pursuing it (figured that’s more suited for bottoms up equity analysis roles rather than top down analysis?). Are there any particular skills I could work on to help?
Any insight would be much appreciated
Bump
Multi asset isn’t exactly macro btw. Their primary focus is asset allocation, portfolio management & manager selection. But they don’t actively trade based on macro unless it’s a multi asset fund. Sure many multi asset teams may have a top down/macro view on markets but it’s mostly to support their allocation as well as for marketing purposes.
I’d say the CFA is still extremely relevant for Multi Asset, given that they cover topics in portfolio optimization, risk attribution, factor analysis, etc.
If macro isn’t your main priority, then don’t limit yourself to multi asset groups within AM. Also broaden to Multi Asset/Portfolio Solutions within PB/WM, OCIOs, investment consultants and endowments. The work is similar across these areas, with a focus on asset allocation & manager selection.
Thank you! Macro isn't an absolute necessity, more so just interested in looking at investments through a broader top-down lens and have always been fascinated by looking at newsflow, central bank policy, economic releases, etc and its impact on markets.
Bump
Multi Asset solution groups at BBs are often just FoFs using the BBs different funds (primarily equity and bond funds). If you join as an analyst/associate you tend to be a mix of junior portfolio manager, "manager selector" and "sales guy". You will be doing a limited amount of research on asset allocation (most work will be done by an asset allocation & research group) and you will spend some time on which funds you pick, but it is generally quite clear that you have to pick a set of internal funds. The same applies for mandates, a given allocation is implemented using internal strategies as a FoF or using direct implementation (you simply buy the securities which the internal funds hold). These funds or mandates get rebalanced on a regular basis. A lot of this work is automated as much as possible. To be honest with you, this kind of work is rather boring and it is an operational role with not a lot of creativity (you don't learn a lot about the products you have in your fund, you don't really have a view on the market, you can't really change a lot). If you are allowed to invest into alternatives as well, it can become a little bit more interesting, but you pretty much follow the same approach of FoF investing as in the case of traditional asset classes (be aware what alternatives means, sometimes including commodities counts as alternatives, you don't see so much HFs and private market exposure in BB multi asset portfolios). Often you have to do reporting tasks or write commentaries regarding investment performance and strategy (this is simple marketing, nothing fancy). I would honestly really consider whether this role actually interests you (especially long term). You don't really get transferable skills. I would only pick a role at a BB, if they clearly state that you are responsible for researching asset allocation or your job is to go out there and source external managers.
I think multi asset is more interesting at a family office, SWF or endowment type shop, as you actually conduct proper manager selection (meaning you can go out there and discover what managers there are). You build up tons of contacts and can actually shape a part of the overall portfolio. Also, you tend to have more alternatives (can be up to 50%), so you can cover HFs and private markets, if you get the chance. Just beware, that as at BBs the roles of asset allocation and manager selection are generally separated, so you will have to decide which one you prefer.
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