A friend of mine is enrolled to sit on the CFA level 3 exam. He hopes that CFA charter will give him an opportunity to start a career of an analyst.
Now he works as a financial advisor and his primary responsibilities are to make cold calls and turn prospects into clients. He likes neither calls not the salary.
He feels that if he resigned from his job then there is a good chance to be in shape on the exam day otherwise the chances are lower. Was it worth it? The logic tells to resign. But his inside biases like conservatism, regret - aversion, status quo and endowment interfere with his endeavor to put all his efforts to achieve his main goal (pass level 3). What do you think my friend should do?
If he resigns, and doesn’t pass, then he’s royally screwed. Instead, tell him to use his “job hatred” as motivation to study his arse off so he never has to sit for it again. Being able to apply for a new job with the Charter (and potentially a better starting salary) should be his goal.
“the logic tells to resign” actually that is very illogical.
Keep working. After a few years of that, your friend will be elevated to Client Portfolio Manager or Investment Manager or whatever he or the company thinks sounds good…He won’t be cold calling as much then…I think about a third of CFA charters are client PMs/financial/investment advisors/managers…
I’m not sure what an Investment Manager is, but Client Portfolio Manager and PM are not on his career path. You don’t go from FA to CPM/PM with or without the charter.
I think the title is really up to the company arent they? Merrill Lynch used to call their FAs - that sell everything from health insurance, life insurance to stocks to mutual funds with and without discretion - a Global Wealth Manager…Same can be said at JPM and Citi…
The guy I recently did business with to open up 529 and umbrella insurance is with New York Life but he is with their RIA arm Eagle Strategies…He said he started as an FA selling life insurance and mutual funds but now worked his way up by managing SMAs - No CFA but he does manage investments both with and w/o discretion.
My FA who is at US Trust is called Private Client Advisor but also calls himself PM…He doesn’t have CFA but has a JD from a top school…
PM/CPM is all free for all I think just like how “analyst” is thrown out by every department at banks.
^But no one you mentioned there is a CPM or PM. I agree at some firms people just seem to make up their own titles (looking at you “PM” at an RIA). But a Client Portfolio Manager is a very specific roll in the asset management industry. They’re client facing but sit with investment management. Basically a PM that can actually communicate with another human.
I’m just saying, you don’t go from FA to buyside (I’d still consider a CPM buyside)…ever.
Now, back to that RIA that calls himself a PM. Sure, that’s attainable. But you have to live with the knowledge you’re a fraud so there’s that…
ok i agree. Wouldn’t my advisor at US Trust and the Global Wealth Manager at Merrill also considered CPM or PM? They do have discretion over their clients’ portfolios…My guy at US Trust manages $600M and has his own team of people just like all the teams at large banks. This guy can and is a CPM or PM?
Although he hates me because i told him to jam my money into index funds with exception to MLP positions…
You obviously haven’t had this experience however it is possible to find yourself in a job which is clearly not linked directly to your interests and causes a great deal of frustration. If you are fortunate enough to have other options which will increase your likelihood of success in your desired endeavor in the long-run, it can be worth leaving your current job. Clearly he has savings or is living at home for free so doesn’t have to worry about needing to work in the short term. I wouldn’t keep an easily obtainable job at the cost of reducing the likelihood of my future goals being met.
It sounds like your friend thinks his study isn’t enough and would like to have more time for it even considering resigning his position. But those charterholders who were on the L3 exam including me probably thought they hadn’t had enough time to study at all until the last minute, only to find themselves passing the exam as a result.
Actually, he was hired two months before level 2 exam and manage to pass despite probation period. His main point is that because he is not going to work on this position in the long run, why not to resign in the most appropriate time? Give some objections, please.
Never a good idea to quit your job to pass an exam…your friend can always ask for days off from his current job to study which is a perfectly valid excuse. Most people try to study for the CFA with demanding jobs anyway so if your friend thinks this is too tough maybe it’s not the right line of work for him.
Nope, certainly not a CPM and PM is a big stretch. In order to be a PM, you should manage an actual product. It does get confusing because most major broker-dealers have Rep and PM platforms (fully discretionary), but that just means the advisor gets to act like a PM.
I have a big problem saying the corner office Merrill guy gets to use the same title that Peter Lynch did.
PM as in Portfolio Manager should manage an actual product? What is that mean?
The PM at equity hedge fund i worked at had discretion within the equity sector. This guy is Portfolio Manager because he managed a portfolio not because he managed an actual product?
Yes, I too have problem calling IARs a portfolio manager just because they manage few hundred million in client assets from mutual funds, index, SMAs, etc. What about fund of fund guys? I met this guy who worked at Seattle based Russell Investments as Portfolio Manager in the New York office during my L3 class at NYSSA. His official title is portfolio manager but his job is to pick and allocate to “qualified” funds within his asset class ie equity, bonds. His team of “research analysts” are actually fund of funds analysts.