Hello,
I have interests in Asset Management and have been thinking about pursuing a CFA designation. I have researched the types of roles CFA's typically have i.e research analysts, Buy-sell/side etc.. yet I would appreciate if a CFA holder would provide some perspective on how the CFA has supplemented their career in AM (pros and cons) and specific jobs one can have!
Talk soon, BG
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I think there are two variables that effect the value of the CFA charter: geographic location and the various subsectors of finance.
In the case of geography, the charter means different things in different countries. In the case of the US, the charter is mainly a differentiator in various asset management roles (equity, fixed income, hedge funds, etc.), sell side research and wealth management. In the example of Canada, the CFA is held by a much broader group of professionals. Investment bankers, private equity professionals, commercial bankers, real estate investors and a whole lot else hold the charter.
As it relates to professional sector, some fields (and specific companies in particular) can make the designation a requirement to progress, while others view it as entirely meaningless. You have to figure out if your desired path puts the charter in the "required" field for your own development.
Speaking as charterholder, the one thing I will say it has done for me is give me optionality in my career. I originally did the designation as I wanted to learn more about finance post-undergrad, and differentiate myself from the horde of other business undergrads in the job market. I don't think it's a silver bullet for my career development, but I do think lots of people understand the commitment it takes to earn the designation, and often that respect can make people give you the benefit of the doubt when you're making career transitions and you don't have the perfect resume for a new role you're seeking.
Based on the cost and benefit analysis, I think you should pass the level 1 and call it a day. Use passing level 1 to get interviews and also put together a research report as a work sample to be used in the recruiting process. Once you get the job, you can take time to pass the remaining level 2 and 3; and also get the work experience requirement to become a CFA.
The last thing you would ever want to do is to focus too much on CFA exam. 1) Get all the level 3 passed while completely ignoring other aspects of the recruiting process (i.e. networking and putting together research report), and 2) lying the local CFA community on the work experience to get the CFA charter (i.e. know a lot of people who did prime brokerage/back office work to be qualified as relevant work experience for CFA); resulting in stuck in the same job and/or failed to move into a proper equity research position.
Did my CFA Level 1. Didn't pass the level 2. Managed to get an equity research job. Moved to buy-side (business development role) and now back to sell-side doing IBD Coverage. Life comes with a lot of surprises. So don't assume that there is a path (i.e. CFA > Research > Hedgefund).