Future of Work in Investment Management

The Future of Skills and Learning

CFA Institute offers a multi-part research series, examining new work parameters for the investment industry, Future of Work in Investment Management.

The latest report, the Future of Skills and Learning, highlights current gaps between the supply and demand for skills in the investment industry, examines learning trends, and proposes changes to investment teams to better leverage the diverse talent of investment professionals.

The report analysed 16 trending skill areas to determine which skills investment professionals are currently pursuing, or plan to pursue, and found that 84% of Australian respondents said they want to acquire soft skills, 78% are seeking skills in sustainability or Environmental, Social, and Governance (ESG), while another popular area was leadership skills in a hybrid workplace (78%).

Key findings from the global survey:

• Changing roles. More than a third of CFA Institute members surveyed believe the role they perform will be substantially different in 5-10 years’ time, and the biggest disruptive factor will be new analytical methods, including AI and machine learning.
• Few professionals receive on the job training. Fewer than half of survey respondents receive support from employers to develop the new skills they need. Artificial Intelligence, machine learning, decentralised finance, and sustainability currently present some of the largest gaps between a professional’s interest in learning and supply of expertise.
• The pathway of traditional investment careers. For CFA Institute members, the most common job role transition is from analyst to portfolio manager to chief investment officer. Among portfolio managers surveyed, 46% were analysts previously and 25% went on to become CIOs. Among asset management CEOs surveyed, the most common preceding roles were chief investment officers (20%), portfolio managers (18%), and relationship managers (10%). Some private wealth managers and financial advisers have the most varied career pathways to their respective roles.
• Soft skills needed vary among roles. Among the CFA Institute members surveyed, 58% say their work involves a high degree of creativity. CEOs are most likely to say their role has a high degree of creativity (82%), followed by investment strategists (73%). Those least likely to require creativity (less than 40%) hold process-oriented roles, such as accountant/auditor, regulator, and performance analyst.
• The skills in high demand. New sources of data will affect the skills needed for investment decision-making. The skills mentioned most by investment professionals include a foundational understanding of AI and machine learning, as well as knowledge of sustainability issues. The most important soft-skill category is 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 skillsets to succeed in a more flexible and dispersed work environment.

Explore the changes investment organisations and professionals are likely to make as they reassess the context of careers, the content of work, and the culture of organisations.

Methodology: 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 percent.