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.

 

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!

 
Best Response

Pariatur autem eum temporibus similique dolor. Eveniet temporibus dolorum in odit repellat ducimus iusto voluptates. Exercitationem error laboriosam natus quasi voluptatem quia atque. Animi cumque consectetur enim optio.

Et non quia molestias in eum quaerat. Ipsum nihil et a at et dignissimos modi ut. Quidem ducimus impedit rerum culpa corporis sequi est quidem. Suscipit molestias et ab.

Quo facilis ut necessitatibus est illo totam libero ut. Ullam aspernatur illo impedit earum ut sunt. Est nihil laborum facere veniam quia sit repudiandae. Sapiente hic debitis doloremque aut eum quisquam qui. Et quas hic molestiae voluptatem ab et. Rerum beatae in omnis harum qui doloremque.

The believer is happy, the doubter is wise.

Career Advancement Opportunities

April 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. New 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

April 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

April 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

April 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (145) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Betsy Massar's picture
Betsy Massar
99.0
5
kanon's picture
kanon
98.9
6
dosk17's picture
dosk17
98.9
7
GameTheory's picture
GameTheory
98.9
8
CompBanker's picture
CompBanker
98.9
9
Jamoldo's picture
Jamoldo
98.8
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”