Should I do a masters to break into AM?
Hi all,
I’m weighing up my options for next application season and was hoping to get some input from anyone who knows a bit about getting into asset management.
I am on track for a first from a good but ‘non-target’ uni and by application season I will have finished a year of experience in a risk role at the Bank of England (placement year).
My career aim has always been to get into investment management. I’m wondering whether to focus my time on applying for grad schemes in this area (hoping my experience and grades could give me a chance) or whether I should instead focus on trying to get a spot on a masters course at a target school where I can hone my skills and improve my chances at an AM job after that.
So essentially my question is will I benefit from a masters, or should I just start applying for jobs now?
Thanks very much:)
Ahoy there!
Based on the most helpful WSO content, here's a treasure map to guide you through the choppy waters of breaking into Asset Management (AM):
Undergraduate Degree and Experience: You're on a great course with a first from a non-target uni and a year of experience at the Bank of England. That's a solid foundation that can definitely catch the eye of AM recruiters.
Grad Schemes vs. Master's Degree: It's a bit of a crossroads, isn't it? Grad schemes in AM are highly competitive but not impossible to snag, especially with your credentials. A master's from a target school could give you an extra edge, but it's not the only way to hoist your sails towards an AM career.
The CFA Charter: Don't forget about the Chartered Financial Analyst (CFA) program. It's a golden ticket in the AM world. Starting the CFA could show your commitment and seriousness about the AM path.
Networking: Rub elbows with industry professionals. Your experience at the Bank of England could be a great conversation starter. Networking could open doors that neither a grad scheme nor a master's might unlock.
Direct Applications: Applying directly to AM firms can sometimes work out, especially if you can demonstrate your passion and knowledge in investing.
Consider the Costs: A master's degree is a significant investment of time and money. Weigh the potential benefits against the cost and the delay in starting your career.
In short, there's no one-size-fits-all answer. If you're feeling shipshape about your current experience and skills, hoisting the job application flag might be the way to go. But if you're keen on navigating through more academic waters and believe a master's from a target school will set you apart, then that's a voyage worth considering.
Remember, matey, the wind can change direction at any time, so be ready to adjust your sails as needed. Good luck!
Sources: Breaking into long only Asset Management, Asset Management vs Investment Banking 101, Stepping Stones to Asset Management, https://www.wallstreetoasis.com/forum/real-estate/is-georgetown-masters-in-real-estate-for-me?customgpt=1, Non-Target Undergrad to Non-Target Grad to Asset Management
AM is a shrinking industry, especially in Europe right now... Only worth it for top percentile profiles (Oxbridge, languages etc.). Do a masters in data science instead.
Thanks. What do you mean by languages?
Pretty much all my colleagues fluently speak >2 languages. Mandatory for AM/finance in Europe, only in the US can monolinguals survive.
Whilst I agree with the sentiment above, the slow decline of AM is well discussed in these forums, atleast from a comp perspective. I don’t think a masters is a silver bullet having been to both a non target and doing a masters at a non target myself. In a lot of rooms you will walk into MSc in X will be table stakes. That doesn’t mean you can’t break in with a Bachelors, it just makes the probability lower. If I were you I would try to get a final year summer after your placement (it’s the route I followed), there is a great deal of luck involved. I would not ignore the IBs, S&T is still imho the best path if you want to be an eventual investor (macro or multi asset, not talking single stock or credit). It really depends what you are after but given your time at BoE I would argue that it’s not a bad place to start your career if you can convert into the grad scheme and work your way up.
hope this helps just my 2c
Thanks very much for your input :)
Had never really thought about applying for summers following a placement but that could definitely be an easier option.
Not disagreeing with what you said, but I would add something. Any strategy in investment management is doomed to decline eventually. It's a moving target. Others appear, but by the time they are taught in a masters program, the market has often moved on. A riskier entry may be the way to get ahead of the curve, if you can find a way. Good luck.
Thanks for the insightful comment. Why do you think strategy in investment management is doomed to decline? Is it because of AI?
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