First post here :) (actually created an account to gauge feedback as it felt like WSO is a goldmine for that)
As the title suggest, after almost 2.5y stint as a sustainable investing analyst at a European AM, a role opened up to become a junior PM in emerging market govies. I am quite attracted by this role as I find myself more interested in bond markets than equity, and the notion of a more macro view and focus on geopolitics in EM really entices me.
Wondering if someone here has experience of working within that role and willing to share any advice for someone who will start that job soon? LT visibility of this career --> i feel indexing is eating way active equity, but i sense fixed income & especially EM is more safe from that. Any views on the transfer-ability of its skills in case I want to exit in the future (or does it pigeon hole me)? What even would be the exit opps? general advice?
thanks in advice!
1.) yes FI more resilient than equity to index/AI
2.) yes EM FI more resilient than US IG/most other public FI to index/AI
3.) yes PM more resilient than analyst to index/AI
4.) jr PM in EMD is an amazing step up from sustainable investing analyst
Only real drawback in your specific case I see is the dismal state of EU AM but that is kinda neutral in your scenario. Have done this career for awhile and think it is awesome...honestly doesn't feel like work most of the time/good WLB/decent comp potential/geographic flexibility. People who do it really like the subject matter so if you are punching the clock can be hard to keep up. Worth caveating if you choose EM you will 1.) get a lot of fire drills; 2.) have to put up with peers in your firm/seniors being like "ooooh can't believe you would invest in Paraguay at 300 over or whatever."
PM/CIO usually is the exit op. It kinda depends what you are going to focus on (corp credit/sovereigns/fx/rates), but PM track will pigeon hole you other than say going to do PM in other areas of fixed income (but that is still far better potential than being a sustainable investing analyst IMO?). If you are going to be doing trading maybe that can add to your exit ops. The "exit op" would be going to do the same thing but at an insurer, hedge fund, bank AM, SWF, i.e different kind of asset owner. If you were an analyst would open up other possibilities but worse long term outlook in EMD vs. PM track IMO.
It's a great opportunity given what you're currently doing...I'd take it personally.
Thanks for the response! Just a background, I think the role opened up for me due to 1. right place right time - 2. i finished my cfa backtoback in 2y and i think I was doing a pretty good job in the sustainable investing team. The role will be focused on EM sovereigns, mainly on local debt -- fund has an AUM of 400mln EUR. Given what I saw, doing a good job with this fund opens up the hard currency fund, which is a bit bigger.
You mention being a PM in other areas of FI as an exit opp. Do you think sovereign EM is good gateway to let's fx or rates? Also, where are you located if I may ask? (Im curious as to why you the negative view one European AM). Also, do you maybe have plans already for what you would like to do next? In all cases, I am definitely not willing to stay in the sustainable investing team, but I still want to make sure Im switching to something I won't want to leave again in 2-3yrs.
1.) right place right time is most important- I don’t mean this to come off the wrong way but I doubt you’d be considered externally for those kinds of roles
2.) yes FX/rates is not a crazy transition down the road bc you literally will be doing EM FX/rates; on the one hand negative that not so many standalone EM local mandates doing that well given performance but they generally also have this as sleeves in macro funds so that is an option
3.) not willing to dox myself but let’s say I am an EM debt “lifer” and non-EU based. Continental AM is known to pay materially less than other places and while UK pays more their AM is dismal (look at share prices)
4.) I think you should take it as would be unlikely to get something as good externally and have upside with the hard currency fund as a potential transition. I think youd still be in a better spot in 2-3 years even if you want to do something different unless you want to totally pivot and be an investment banking analyst or management consultant or whatevr
Only a European AM would consider promoting an esg analyst into a high vol fx/rates risk taker role... this makes no sense but good for you if you can make the move.
I get your POV, actually something myself and other younger employees here have spoken about a lot. It seems that in continental AM, switch from one team to another might be less structured as opposed to the US, where a to become a PM, a certain path is known and followed. I see this as both a positive and negative..
But also not to sell myself short, I'm 25, with a bachelor & masters, did 3 cfa exams back to back (finished first 2 in top 90th percentile & now awaiting the results for the 3rd level), and have taken massive responsibilities within my team since day 1. I would argue my work is as vital as colleagues with 25+ YOE. So maybe an unorthodox switch, but it wasn't out of their kind hearts. Probably most applicants were more qualified, but i guess my employer decided to take a chance on me :)
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