The future of skills and learning in a rapidly changing investment industry

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CFA Institute’s new research on the future of work examines skills, learning trends, competencies and pathways to career success

NEW YORK, July 7, 2022 /PRNewswire/ — The CFA Institute, the global association of investment professionals, today released the fourth report of its future of work series, exploring the The context, Cultureand Content of work in the investment industry.

Advanced technologies and hybrid work continue to change the shape of careers in finance. The Future of Work in Investment Management: The Future of Skills and Learning draws on CFA Institute survey data to identify the skills and learning equation for developing talent and careers in a transforming investment industry. The report highlights the current gaps between the supply and demand of skills in the investment industry, examines learning trends and proposes changes for investment teams to better leverage the diversity of talent and the combined power of discrete but complementary skills.

Less than half of survey respondents receive support from employers to develop the new skills they need. Artificial intelligence (AI), machine learning, decentralized finance and sustainability present some of the largest gaps between the interest in learning and the supply of expertise today. Investment managers and those in fintech/IT, trading, sales and accounting positions are those most expecting significant changes in their roles.

Rebecca FenderCFAHead of Strategy and Governance for Research, Advocacy and Standards, CFA Institute comments:

“The world of work has seen dramatic changes, and as the investment industry competes for top talent, an opportunity exists for investment organizations to redefine and reframe their focus on development programs talent that matches the pace of change. It’s not just new markets, asset classes, data sources and investment techniques that demand a new focus on skills and learning. many, hybrid working has opened up a new way of thinking about the employer-employee relationship.

Main conclusions:

  • The impact of new analytical methods on roles: More than a third of CFA Institute members surveyed believe the role they will play will be significantly different in 5 to 10 years, and that the biggest disruptor will be new analytical methods, including AI and technology. machine learning.
  • The journey of traditional investment careers: For CFA Institute members, the most common role transition is from analyst to portfolio manager to chief investment officer. Of the portfolio managers surveyed, 46% were previously analysts and 25% became CIOs. Among the asset management CEOs surveyed, the most common previous roles were chief investment officers (20%), portfolio managers (18%) and relationship managers (10%). Some private wealth managers and financial advisors have the most varied career paths to their respective roles.
  • The outlook for less traditional investment career paths: Career paths are diversifying and are characterized by more career breaks and greater flexibility. The main influences on the evolution of career paths come from the technology sector (via fintech) and entrepreneurs (especially private equity boutiques).
  • The skills path: Hard skills are most important at career entry, soft skills, leadership skills, and T-shaped skills (a combination of deep knowledge in a single area and broader knowledge in other domains and the ability to connect them) growing in importance over time.
  • Highly sought after skills: New sources of data will affect the skills needed for investment decision-making. The skills most mentioned by investment professionals include a fundamental understanding of AI and machine learning, as well as knowledge of sustainability issues. The most important category of soft skills is that of influencing, persuading and negotiating. Other skills that have become more important in the new world of work include time management, direct communication and being more resourceful. Managers and leaders will need to adapt their skills to succeed in a more flexible and dispersed work environment.
  • Availability of skills and areas of development: Investment professionals are interested in new skills but are limited in time. Among the 16 trending skill areas, notable differences between “saying and doing” are evident. For the AI, for every person pursuing the skill, three more intend to do so. Currently, about 20% of respondents say they are continuing their education in AI and machine learning, indicating how much respondents anticipate AI will change the investment landscape. Data sustainability and visualization saw the largest overall increase in interest levels over the previous two-year period.
  • Talent factors: Employers are looking for a combination of skills, courage and experience.

Nick BartlettCFA, The Chief, Practice Analysis, CFA Program, CFA Institute comments:

“Today’s investment industry professionals and CFA charterholders will invest in ongoing professional development to stay fluent beyond their foundational studies. For graduates and early-career professionals Aspiring to roles within the investment profession, the CFA program offers a comprehensive curriculum to demonstrate professional competence, and a platform from which candidates can deepen their expertise and advance their careers.”

To access The Future of Work in Investment Management: The Future of Skills and Learning, go to here.

Methodology
The future of skills and learning offers new survey data collected through a “Skills and Careers Survey” of 2,137 CFA Institute members conducted in November 2021, with a margin of error of +/- 2.1%. The complete in four parts future of work The series is based on quantitative responses from a combined group of more than 11,000 investment professionals worldwide across three surveys conducted between March and November 2021. The series also draws on feedback from leaders of 41 investment organizations representing more than 230,000 employees. In addition, more than 100 investment professionals and human resources professionals from the investment management industry provided qualitative commentary through virtual roundtables in the following markets: Australia, Canada, China, India, Japan, Malaysia, Singapore, South Africa, Swissthe United Arab Emiratesthe UK, United Statesand Uruguay. The report also builds on research featured in previous CFA Institute publications on the future of finance, including Investment Professional of the Future (2019).

Aligned reading
The next 75 years: will generalists or specialists prevail?
by larry caoCFA, Senior Director of Industrial Research, CFA Institute

About the CFA Institute
The CFA Institute is the global association of investment professionals that sets the standard for professional excellence and credentials. The organization is a champion of ethical behavior in the investment markets and a respected source of knowledge in the global financial community. Our goal is to create an environment where the interests of investors come first, markets function best and economies thrive. There are more than 190,000 CFA® charter holders worldwide in more than 160 markets. The CFA Institute has nine offices around the world and there are 160 local societies. For more information, visit www.cfainstitute.org or follow us on LinkedIn and Twitter at @CFAInstitute.

For more information or to speak to the author of the report, please contact [email protected].

SOURCE CFA Institute

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