Is Asset Management Worth It?

Alright, so I started at a pretty big($50B CAD)Asset Management firm as an intern this May. One of the traders was probing and I told her my dad's an advisor who buys the firms funds. She tells me "go work for you're dad, you'll make more money."

Is asset management worth it? Keep in mind this is my first internship.

4 Comments
 

I think that you aren't quite understanding what she means. Your dad is a financial advisor and she is assuming that he has a decent book of clients. And since it's your dad, she's probably assuming that you would progressing really fast and potentially take on the entire book after a few years. If the book is sizeable, you could be making 7 figures which is going to be more than an execution trader at an Asset Management firm and possibly even a portfolio manager, which obviously varies depending on returns and AUM. Financial advising seems to be built more on relationships than returns, so yea :/ I'd rather not do the client cold calling stuff that is required of an FA, but that's just my preference.

 

Alpha has been scarce over the past ten years with the exception of the last few months. As we move forward with rising rates, small cap growth sky rockets. They go hand in hand and active tends to target smaller stocks. Hence the future should look better and desire for equity growth in our earlier years will never cede, AM clearly benefits.

What concerns me is the wild-west gun standoff mentality between BlackRock and Vangaurd for who can eviscerate fee's the quickest. This spiral effect has everyone from ER to AM clamoring for spots. It is obviously and industry wide dilemma and affects every other firm along with it. Fixed income seems to have been somewhat protected. I know quite a few guys in the comprehensive PWM side for while and it is definitely eat what you kill with huge turn around. But with the work ethic needed for IB, I have always figured that many of them would be much better off as a FA by their late twenties. Problem for most is you make nothing in the beginning. With FA's, the potential is limitless you are an entrepreneur. I would recommend starting the CFA while you are in undergrad. It could open many doors!

 
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