Is becoming an institutional asset manager right for me?
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How to become an Institutional Asset Manager
Becoming an institutional assets manager typically requires a combination of education, experience, and professional certifications. Here is a snapshot of the pathway to the career:
Bachelor’s Degree
Institutional asset managers typically hold a Bachelor's Degree in Finance, Accounting, Economics, or a related field, such as business administration or international business.
Relevant courses include financial accounting, corporate finance, investments, financial modeling, and risk management.
Some portfolio managers may hold a degree in a field such as engineering or mathematics, or computer science, especially if they specialize in quantitative investment analysis.
Work Experience
Aspiring institutional asset managers typically gain work experience in entry-level roles in the financial services industry. Roles such as research analyst, investment analyst, and financial advisor provide exposure to the investment process, investment products, and client management.
Professional Organizations and Certifications
As the field of finance and asset management is constantly evolving, it is important to stay up to date with the latest technologies, industry developments and regulations, and best practices. Several industry organizations provide advocacy efforts, access to professional events, continuing education opportunities, and industry research and resources, as well as a network of like-minded professionals working in the field.
Many institutional asset managers hold professional certifications offered by these organizations, which demonstrate expertise in investment analysis and asset management, as well as a commitment to ongoing education and professional development. While they are voluntary, some companies may stipulate one or more of these certifications, described below, as a condition of employment, particularly in more senior roles.
- Chartered Financial Analyst (CFA) – Offered by the CFA Institute, the CFA designation is a globally recognized certification program for investment professionals. It requires passing three levels of exams covering topics such as ethics, investment tools, portfolio management, and economics, and requires several years of work experience in investment management.
- Certified Investment Management Analyst (CIMA) – The CIMA designation is offered by the Investment Management Consultants Association (IMCA). It requires passing an exam covering topics such as asset allocation, risk management, and investment strategies, as well as meeting other requirements such as work experience and education.
- Chartered Alternative Investment Analyst (CAIA) – The CAIA designation is designed for professionals who specialize in alternative investments such as private equity, hedge funds, and real estate. It requires passing two levels of exams covering topics such as asset allocation, risk management, and alternative investment strategies.
- Financial Risk Manager (FRM) – The FRM certification is awarded by the Global Association of Risk Professionals (GARP) and demonstrates expertise in risk management, including financial risk assessment, quantitative analysis, and risk mitigation strategies. The program consists of two levels of exams and requires candidates to have at least two years of relevant work experience.
- Certificate in Investment Performance Measurement (CIPM) – The CIPM certification is awarded by the CFA Institute and demonstrates expertise in investment performance measurement, attribution analysis, and compliance monitoring. The program requires candidates to complete a rigorous education program and pass two exams.
The Institutional Limited Partners Association (ILPA) also supports the institutional asset management sector.
The National Association of Securities Professionals (NASP), an association for minority women professionals in the securities industry, advocates for diversity and inclusion in the financial services field.
Networking
Building a network of contacts within the finance industry can be helpful when seeking employment as an institutional asset manager. This could involve attending industry events, joining professional organizations, and/or seeking out mentorship opportunities.
Advanced Education
While not always required, pursuing an advanced degree such as a Master of Business Administration (MBA) or Master of Finance (MFin) can be helpful when seeking employment as an institutional asset manager.