INVESTMENT MANAGEMENT: FUNCTIONS
decision-making process, such as boutiques, which
are nimbler and more fl exible with staff . Certain
CHAD SLATER, CFA
fi rms are also much more team-orientated; while
others have a culture of ‘star managers’ – where the
Title: Portfolio Manager
portfolio manager is king, provided he or she is
Current employer:
able to deliver the goods in terms of performance.
Hunter Hall International
Candidates who want to invest money often
Previous employers:
Australian Federal Treasury; BT
start their careers in research, working their way up
Funds Management; Putnam
from entry level positions, initially providing Investments
support to analysts, then becoming analysts, and University:
then once they have proven themselves they are
University of Queensland,
given a small portfolio to cut their teeth into. An
Australia
apprenticeship with an experienced portfolio
Degrees:
Bachelors in Commerce;
manager is the only way to really gain an intuitive
Bachelors in Economics
understanding of how to time the markets. Some
Professional qualifi cations: CFA
candidates however, will have corporate fi nance
backgrounds, where they build up an acute
What attracted you to this career path?
understanding of capital markets.
What attracted me is the pitting of your skills and
In current market conditions, it is even more
knowledge against the market and other investors, in
important for portfolio managers to demonstrate
a way that is measured every day.
creativity, and show they are not just one of the
herd. Th ey must also manage and mitigate risk.
What are the major challenges you face in your
Merrill Lynch’s monthly Survey of Fund Managers,
position?
which interviewed a total of 186 fund managers
In this bear market: Not losing money! More generally,
from 5 September to 11 September, managing a
acknowledging your imperfect understanding of the
total of $641 billion in assets, revealed that 61% of
world and accepting you are often wrong.
fund managers believe that recession is likely in the
next 12 months. Investors have adopted more
Are there certain skills you would consider useful
defensive strategies and shortened their investment
for your job?
time horizons. Liquidity conditions (depth of Being comfortable with mathematics and numbers is
market and ease of trade) have worsened, with a a requirement. I fi nd people with economics degrees
net 39% of respondents rating conditions as synthesize industry thematics into numbers better.
Also, learning to adapt and not repeat trading errors.
This is harder to quantify and isn’t learnt from a
textbook. It comes over time.
“Portfolio managers have to
How do you think the role you’re in now will change
over time?
perform within certain ranges,
Markets are becoming more heavily analysed. This
doesn’t necessarily make them more effi cient – ‘group
so there’s only so much freedom
think’ is a possible outcome. Styles and skills continue
to evolve, which is the great thing about investing –
just when you think you have fi gured it out, the market
they can have, and that’s
changes and surprises you.
Do you have advice for someone intending to pursue
the challenge of managing
the same career path?
Don’t do it for the money. Whilst it can be good, the
best investors love investing and are open to new
portfolios, it’s both a science and
ideas. Money is a consequence of being good. Lastly
don’t be put off if you haven’t done a fi nance degree.
an art”
One of the most talented investors I know was an
Kim Yates , Principal Search
engineer.
WWW.CFAUK.ORG CAREERS GUIDE 2009 31
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