So, You Want to be an Investment Consultant?

I recently had the pleasure of participating in the CFA Program Career Webinar Series and was thrilled when I was invited to share insights from my 25 years of investment experience with Enterprising Investor readers. This blog post is a resource for early career investment professionals interested in the world of investment consulting. I’m a managing director and partner at Marquette Associates, an independent firm that is based in Chicago. I also chair the firm’s defined contribution services committee and act as primary consultant on several client relationships.

My Indirect Path into Investment Consulting

My career began with aspirations in economics back in the United Kingdom, where I grew up and completed all my non-professional education. Opportunities a few years out of university led me to the United States, where I joined Merrill Lynch. At Merrill, I was exposed to both asset management and consulting sides of the business. New doors opened for me after passing each level of the CFA exam, which prepared me to work as a fixed income credit analyst at Merrill. While I gained valuable experience in the role, for several reasons this was not my ultimate calling.

My exposure to capital markets and asset management at Merrill laid a foundational understanding for my eventual move to consulting. I discovered that consulting blended my backgrounds in both economics and asset management beautifully. As a consultant, I handle asset allocation, manager selection, and market discussions with clients, allowing me to draw on my varied experiences.

Consulting as a Calling

Consulting is an intricate dance of using quantitative analysis and relationship management. The diversity of tasks and clients played to my innate curiosity and desire to find solutions to a variety of situations. On any given day, I get to engage with different industries, personas, and portfolios, continually learning and expanding my knowledge base.

I see myself as a matchmaker.  When all is said and done, I am seeking the right asset classes, the right strategies, and the right managers to meet the needs of the client’s portfolio.

Investment consulting clients range from large institutions to small entities, public to private sectors, and more. Our role involves understanding each client’s specific investment goals, risk tolerance, and liquidity needs. This deep understanding helps tailor asset allocations, choose appropriate strategies, and ultimately lead clients towards successful investment outcomes.

Balancing Your Personal Skills Portfolio

An investment consultant must balance the technical with the relational. Quantitative skills are crucial for assessing investments, while equally, if not more important, are the communication and relationship-building skills. You must be able to explain complex quantitative data in simple terms to clients and forge trust-based relationships to effectively advise them.

Opening the Door to Investment Consulting

Breaking into investment consulting can seem challenging, especially when job postings require previous experience in consulting. My transition from Merrill to Mercer was facilitated by my CFA designation. It became clear that while I didn’t have direct consulting experience, my background in asset management, portfolio management, and economic insights equipped me with a holistic understanding of investments. I was fortunate to have some great mentors and department heads at Mercer who saw this.

I always advise aspiring consultants to leverage their networks. Conversations over a cup of coffee can open doors. The right mix of curiosity, humility, and a strong foundation in investment principles often impresses prospective employers.

Technology and AI: Understand it and Learn to Harness its Power

Looking to the future, artificial intelligence (AI) is poised to revolutionize our industry. As it stands, AI can manage vast datasets, aiding in more efficient decision-making processes. While there’s a possibility AI might streamline some roles, the essence of relationship-based consulting remains irreplaceable, in my humble opinion. AI will likely complement rather than replace the nuanced, human aspects of consulting, fostering more advanced efficiencies and freeing up advisors to focus on strategic counsel and creative solutions.

Key Takeaway

Investment consulting is continually evolving, demanding both intellectual rigor and interpersonal acumen. With every new challenge and client interaction, it offers unparalleled opportunities to learn and grow. As technology evolves, so will our approaches, yet the core of consulting — relationship-driven, strategic advice — will remain steadfast.

Stay curious, embrace the journey, and as I always say, be comfortable with the uncomfortable.