Investment Consulting career
Hi all,
I was hoping that someone might be able to give me an indication of the career prospects one might have if one were to start their career working as an investment consultant with a company such as Mercer. They'd put me through the CFA which is good, but what would be my options after qualifying?
Ultimately, I would like to work on the buyside as a PM. Is this in anyway realistic after starting as an investment consultant, or would I be too pigeon-holed?
Any thoughts?
Thanks.
from what i know, the majority of these jobs are just going and 'consulting' pensions endowments and the like on their diversification and whatnot according to some metric that you guys use right? you guys = mercer
From my understanding it's one of two types of investment advisory... either researching different funds for investment purposes, or analysing the wider markets for asset allocation purposes. It hasn't been decided what I'd be doing yet.
So... what are the career prospects after training in a role like this and gaining the CFA charter?
Mercer is a best in breed investment consultant and if a fine place to start. You will learn a lot about the markets, the economy, asset allocation and manager due diligence.
Getting your CFA is a huge plus given your goal of becoming a buy-side PM. However, if you want to work at an equity or fixed income fund, it might be tough, as the skill set you will need is different (security selection vs manager selection).
As far as exit opps that are more easily attainable, you can definitely work at a fund of funds, private banking, or even in a strategist position at an asset manager.
Would exit opps include fundraising and private placement?
Thanks Tan,
Sadly, it's equities that I really have a passion for, so in an ideal world I'd want to eventually be managing an equities portfolio.
Do you think that moving into equity research either before or after gaining the charter is in anyway realistic? I realise that this is a great opportunity, but I would be left very disheartened if taking it meant that my prospects for eventually managing an equities portfolio were non existent.
Investment Consulting in the US (Originally Posted: 02/21/2013)
Not sure which forum to put this in, but I'll be interviewing for a investment consulting summer internship. Haven't really seen this topic discussed too much on WSO, looking for get an idea of what exactly investment consulting is. M&I had a 2 part article about it but the guest writer wrote from his perspective in HK, I wanted to know if the position is any different in the US, who are the major players (I'll be applying to Mercer), also what type of interview questions to expect?
search for Cambridge Associates on WSO... you'll find a ton of info. they've been well covered.
How far along are you in your career? Is this your first job out of undergrad?
You might want to do some searches on the backgrounds of the people at Mercer, Cambridge, Ennis Knupp (AON-Hewitt), Watson Wyatt and Callan. That should give you a better idea of your exit opps and typical backgrounds.
Investment consulting? (Originally Posted: 04/28/2014)
What is investment consulting? What do such firms usually do? Got an offer from a investment consulting firm, but not sure should I go. The people there are nice (around 10~20), and are mostly ex-consultants from big firms.
Thanks ahead.
IC advises on strategic allocation for non-profits institutions such as university endowments etc. Wide knowledge base across the asset classes; from traditional to alternatives like PE, HF.
Following up on allocation, they perform manager selection research, advising on the managers to pair with the asset allocation.
All in all, an intellectual setting albeit at a distinctly slower place
That's very helpful. Is transition from IC to other fields frequent ?
Is consulting a possible path to break into Investment Banking? - Getting your foot in the door (Originally Posted: 10/07/2010)
I am interested in finding out if anyone has any information or pointers on how to get your foot in the door for investment banking through consulting. What is the process like?
Thanks
What type of consulting? It really depends...
I've met a few people who did a few years in management consulting, went to a top B school, and then broke into investment banking.
Granted, it might be harder now. The people I know made the switch around 2004-2007.
hi guys,
Like someone before hand my aim is to break into the buyside eventually in a PM role (preferablly multi-asset or FI).
I have interest from a PWM in a trainee role where the aim is to become a investment manager (initial work is more marketing, valuations and some investment research whilst you qualify) whilst I also have interest from CA as an inv associate (either on charities/endowments team or for SWFs team)
I was wondering if anyone who has posted before has had any luck breaking into AM (or PE / VC for that matter) from an IC role?
This would be a grad scheme and I already have passed CFA I and looking to do complete CFA. Will 2-3 yrs experience at IC plus CFA be enough to transition over into at least a strategist role in an AM?
Investment Consultants? (Originally Posted: 12/09/2012)
Hi Guys,
Would anyone be able to give me an overview of what an investment consultants role is? What is the value add for endowments or institutions to retain their services?
I would also be interested in hearing opinions on working in that type of role (lifestyle, comp, growth opportunities ect). Finally, What would a typical phone screen consist of for an entry level "Investment Analyst" role.
Thank you!
Is this like Cambridge Associates type of role or what? Pretty good firm (the only one I know). They look at your portfolio and suggest optimal asset mix to optimize returns/minimize risk. That kind of stuff. Most endowments use them. A lot of the firm is also based around publishing research reports, and I believe that they have a separate research group that does this. Lifestyle is solid- probably consultant type hours maybe 60 a week average (maybe more). Lot of them go on into portfolio management or working for an endowment. Comp is the worst part, not particularly great. Had a few friends deciding between there and strategy firms and the comp was quite less here. I think it was 60 base and 10-15 bonus. With that said (and I'm speaking purely to Cambridge Associates fyi) the culture seems great, the people I met there were really nice, and the few people I know who have worked there and since joined endowments had only great things to say about their experience, so I would recommend it.
I interned in an investment consultant group and would reiterate what the above poster said. You are providing suggestions on how they can best allocate across multiple asset classes and manage risk or whatever other variable the client is interested in manipulating. Since the work is client-based, like so much of finance, it really depends on how many projects your client requests. I would be shocked to hear more than ~65hrs/week. Given that time commitment, $75K all in is not too bad and would say it's the avg for this kind of role.
It's not for Cambridge Associates but a very similar firm.
Thanks for the information I appreciate it.
One of my best friends works at Cambridge and he really likes it. I guess it is extremely common to study for your CFA in this industry (he took lvl 1 this month). He enjoys the hours and says the best part of the job is the abiliy to obtain exposure to all asset classes not just at his firm its pretty standard at most big Investment Advisor firms. I've also met a few guys from Cambridge who came to my school for an interview and their value stems from the ability to have an outside (3rd party) opinion come in and suggest asset allocation as Black Jack suggested. Because of regulatory and stict investment guidlines endowments and pensions must abide by, they are great resources to work with.
I think it is a fantastic role for college grads or those 1-3 years out. I can't comment on the phone interview, but I've heard these types of firms throw some interesting brain teasers at you such as the question of the light switches being in a different room and finding out what switch goes to what light.
Investment Consulting (Originally Posted: 06/15/2016)
Long time lurker, first time poster here.
I have recently accepted a job as a Performance Analyst at an Investment Consulting firm. I'm pretty excited for this opportunity, seeing as I just graduated undergrad. My job responsibilities will include assisting in Manager research and reconciling monthly/quarterly returns.
So, I'd love to hear from anyone in the Investment Consulting industry regarding their experiences/pros & cons/exit ops/anything else you find useful to the industry. I feel like it's a niche field, and it's hard to come across any information about the industry on any other finance forum sites.
PM me, happy to give you a rundown.
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