2019-Sep-17 [CFA Society Germany] Press release: Investment careers - 5 tips for future success

2019-09-17 | CFA Society Germany

Press release: Investment careers - 5 tips for future success

- What must investment professionals bring with them in the future to be successful in the long term? - Which characteristics and skills are most in demand in the labour market? - Survey of over 3,800 investment professionals and over 130 executives in the investment industry worldwide provides valuable tips for junior staff and experienced professionals

Frankfurt, 17 September 2019 - The investment industry is in a state of upheaval: in particular the advance of machine learning and artificial intelligence (AI), the increasing need for personalization in investment and the rapidly growing trend towards more sustainability are fundamentally changing professional requirements in the financial sector. 

The CFA Institute, the leading global professional association for investment professionals, surveyed over 3,800 association members and junior staff as well as over 130 executives from the international investment industry about changes in job profiles, competencies and organizational structures in the financial sector. This results in five concrete recommendations for a successful investment career. One thing is clear: So-called soft skills are gaining in importance and are particularly difficult to find in today's labour market. 

"Many investment professionals simply feel more at home with numbers, quantitative methods and statistical analyses," explains Susan Spinner, CFA, CEO of CFA Society Germany. "But we have to accept that these are exactly the fields in which algorithms and machines will soon be better than we are. The contribution of human intelligence lies in soft skills, creativity, interpersonal contact with customers and understanding what they want and need as investors. Anyone who wants to be successful in investment over the next five to ten years and beyond must therefore rethink and, above all, be prepared to learn new things again and again."

5 recommendations for a successful investment career:

1. Demonstrate adaptability

89 percent of executives surveyed by the CFA Institute believe that the roles and responsibilities of financial professionals will change several times over the course of a career. At the same time, 77 percent of them expect the world of work in the investment industry to change more in the next ten years than in the past ten years. In this dynamic environment, companies must be able to react flexibly. This is why there is an increasing demand for workers who can demonstrate a high degree of adaptability and interdisciplinary thinking.

2. Be a team player

The days of star portfolio managers are over. Companies today strive for agility, competitiveness, customer orientation and innovation. In addition, they face fiercer competition for workers, which leads to more frequent personnel changes. As a result, the importance of individual, outstanding individuals is diminishing. Instead, companies are increasingly relying on teams and mixed working groups from different disciplines. Cognitive diversity is also gaining in importance, because teams with different experiences and perspectives are less susceptible to wrong decisions and groupthink. 49 percent of the managers surveyed cite the trend towards more teamwork as a major factor of change in the industry.

For investment professionals, this has its advantages: There is more room for a change of direction and lateral steps in the career. In addition, interruptions, sabbaticals, parental or nursing leave have a less negative effect on individual career paths. But it also means that elbow mentality and ego trips are out of place. It’s the ability to work in a team that counts.

3. Be both a specialist and a generalist 

49 percent of the surveyed financial executives attribute the greatest importance to the so-called "T-shaped skills" for the individual success of investment professionals over the next five to ten years. They rank well ahead of management skills (21 percent), soft skills (16 percent) and technical know-how (14 percent). 

“T-shaped skills" refers to the ability to combine professional depth and specialization with a broader understanding of entrepreneurial interrelationships. In concrete terms, this includes a high level of situational adaptability, interdisciplinary thinking, a strong personal network and a good understanding of the systems in the company and the larger business context.

4. Prove your creativity

In the competition for the most attractive positions in investment management, specialists who are particularly creative and innovative currently have the best cards. Managers state that creativity/innovation (32 percent), interdisciplinary thinking (29 percent) and solution- or customer-oriented working methods (29 percent) are particularly difficult to find in the job market. Even specialist knowledge in IT and computer science, often mentioned as an acute need by employers, ranks far behind soft skills such as empathy, modesty and communication talent. 

 

"Of course, this does not mean that technical and financial expertise is not important," says Spinner. "On the contrary, it turns out that these skills are taken for granted in the labour market. If you want to set yourself apart from the competition, you need to have interpersonal sensitivity and a wealth of ideas in addition to professional competence".

5. Make the most of technology

The investment professionals of the future will increasingly be able to differentiate themselves by skillfully using technology to enhance their work quality and investment performance. In contrast to the popular but all too simple image of machines that replace people, the future of the investment sector will lie in the complementarity of AI + HI (Artificial Intelligence + Human Intelligence). People have the task to "train" the technology, to advise customers well, to recognize their needs and requirements and to develop innovative, individually tailored offers. Machines, on the other hand, are particularly suitable for strengthening successful approaches, analyzing large amounts of data for hidden patterns and performing monotonous, repetitive tasks. 

But basic ethical principles, transparency, communication, empathy, implicit understanding and confidence building are fundamental human elements that cannot be achieved by machines in asset management and investment, even in the longer term. 

Many have already taken the first steps: the survey of around 3,800 international investment experts has shown that just under half (46 percent) are already continuing their training in soft skills. And there is great interest in learning in general: 50 percent of those surveyed stated that it is their profession that motivates them most to learn new things - significantly more than good compensation (41 percent). According to Spinner, this is exactly the right approach: "The most important thing investment professionals should keep in mind at every stage of their career is the willingness to continue their education and to learn throughout their lives. In this way, they can also accept changes that we cannot anticipate at the moment." 

 

THE AUTHOR

CFA Society Germany

CFA Society Germany is the leading association of investment professionals in the German financial industry. With over 2,700 members, the Society represents a broad base within the investment sector and advocates initiatives to advance ... mehr