Fund Accounting career

I'm finishing my degree in Finance and Computer Science and currently looking for a job. There seems to be alot of advertisments for fund accounting at graduate level. I'm just wondering what career options would this role bring and how fast is career progression usually in this field?

Aishling

I have worked in fund administration for over 10 years.
With your degree, there are a number of entry level options in the fund admin business

- Fund accountant : long term, probably best to consider a professional accounting qualification. This is not essential, but will help your career progression. However, I have seen plenty of people advance through the ranks without it. There is high demand for FAs at present in the industry, and as such career progression tends to be pretty quick, with people progressing to next level in under 2 years if good performers. There are often multiple grades depending on size of organisation - entry level/senior/manager/senior manager/vice president etc.


Other areas in fund admin would include

- Financial reporting : a professional accounting qualification, or indication that you intend to pursue this, would be key. This job entails producing fund financial statements, there are usually crunch 'busy periods' during the year from Jan-May.

- Transfer Agency
- Custody
- Systems/Development (might be worthwhile exploring this with your computer qualification?)
- Finance

Hi Aishling

Good advice there from Crazy horse re yr options and career progression

I also work in the field and concur that there is demand and the good performers more relatively quickly, depending on the size of the operation.

As an indication I interviewed a candidate this week with less than 2 years experience looking to go to a senior FA role.

I would add that if looking at fund accounting the hours can be long - depending on the fund types, monthly, Daily NAV's etc.

There is a vast amount to learn whether in mutual funds or the more complex hedge side of things, which can be good or bad depending on your interest.

Another plus is quite a few funds companies have set up offices in the country, Kilkenny, Waterford, Cork and more, so you are not limited to Dublin.

Hope that helps

Thanks guys, thats great advise! I had an interview today for an entry level job in fund accounting, went well I think.... I was also wondering if anyone has gone from fund accounting into fund management?

aishling said:

Thanks guys, thats great advise! I had an interview today for an entry level job in fund accounting, went well I think.... I was also wondering if anyone has gone from fund accounting into fund management?

Click to expand...

It depends on what you mean by fund management - if you mean the stock picking / trading / london wide boy type fund management then I would say no. However, not everyone in a fund management operation is an actual fund manager so there are opportunities for support and back / middle office roles. If considering the fund management route a CFA qualification is usually seen as a good entry point.

efm said:

It depends on what you mean by fund management - if you mean the stock picking / trading / london wide boy type fund management then I would say no

Click to expand...

Being a "London wide boy" trader is a long way off being a highly sophisticated fund trader. Being one myself (London wide boy) I could have gone into trading after school, starting as a runner in the pits etc, but would not have got near Fund Management without a high level qualification

Getting a start in the fund accounting side whilst pursuing the CFA would certainly be highly advantageous, but I would not wait too long before making the move if it it what you want to do.

I would recommend looking at google for Fund/Investment management roles and reviewing the experience and qualifications required. This will also show you other roles in the area which may be of interest such as fund analysis and give you a clearer understanding of how to approach.

rgds
Paddy

paddyodoors said:

Being a "London wide boy" trader is a long way off being a highly sophisticated fund trader.

Click to expand...

Obsolutely - it was a gross over simplification and unjustified stereotype!

There's still a couple of them around but they are a rapidly dying or retiring breed!

The guys getting the cash these days are the ones with the multiple Phd's and the next unbeatable model setting up Private Equity vehicles to go bet other peoples money.

Deleted post

Calico said:

I do think though that much of my problems lay with that first job and how it pigeon-holed me.

Click to expand...

Thats exactly what I'm afraid of! That I will end up hating it but won't be able to find anythingelse without starting back at square one.... It just seems really hard to find a job this year, only one person in my course has one already! All the jobs on the market, seem to either require a degree with 2 years experience or just a leaving cert, after 4 years in college I would like to use it!

I think my main problem is I'm not certain what I want to do, sad I know! I like dealing with numbers and analysing stuff, but another part of me is like do I really want a total office job! Another area I had looked at was financial advisory, would experience in fund accounting benefit me at all if I decided that it is definately what I want?

A friend of mine is a Fund Accountant. He does not have a business qualification (or any qualification for that matter.)

It's a fine job for someone like him - not too ambitious, doesn't really know what he wants to do with his life.

He says the work is very boring (it's a glorified admin job, basically) but the people who work within the industry are good craic so he enjoys the job.

I think for a first job, it's a good choice. From what I've heard I wouldn't want to make a career out of it...

Flax said:

A friend of mine is a Fund Accountant. He does not have a business qualification (or any qualification for that matter.)

It's a fine job for someone like him - not too ambitious, doesn't really know what he wants to do with his life.

He says the work is very boring (it's a glorified admin job, basically) but the people who work within the industry are good craic so he enjoys the job.

I think for a first job, it's a good choice. From what I've heard I wouldn't want to make a career out of it...

Click to expand...

You will find the role is anything BUT a glorified admin role. I think without any other info than "a friend is a fund accountant" what you have posted is very misleading.

Does this person calculate The NAV of a fund? Deal with investment managers? brokers? investors? Deal with complex securites products? understand how and why they are traded? Have knowledge and apply accounting principles? double entry? balance sheet? Investigate and anaylse reconciliation breaks and return discrepenacies?

I doubt very much that a "glorified admin role" describes someone who is performing the above - maybe they work for a company involved in funds as a secretary?

Not being ambitious can apply to any entry level role - I would happily employ soemone who wants to stay at that level for 10 years at the same time as someone who wants to progress, provided they have the necessary inclination to understand the basics.

Paddy

The few people I know in fund accounting generally dislike it, but you'll find those in every profession. They seem to be pigeon-holed to an extent. Something like banking, where are front-office in a lending capacity, has more transferable skills. I'd advise you to go the professional route asap and get the accountancy qualification whilst you're young and carefree. Failing that do a masters for a year or 2, enjoy life cos once you're working thats that!

To be fair, the first couple of years in fund admin / accounting, where you are churning out NAVs can be quite dry and monotonous but I think the first couple of years in any financial services business will be like that as you need to have experience of the "grunt" work before moving up the ladder.

That said, I think that some people fail to see the longer term prospects within the industry and get caught up in bemoaning their lot in life! Paddyodoors says he is interviewing for senior FA roles and is only looking at two years experience - that is a fantastic opportunity for someone and an excellent salary as well - I had to work for 10 years after college before I got near that level of salary.

Also, the longer you stay in the industry the more experience you gain and the greater the opportunities. I personally think that the fund admin industry is fantastic; exciting, intertesting and engaging, with the opportunity to earn excellent money.

Shortly after completing my final university exams I started work as a fund accountant for a large fund administration company in the IFSC 5 years ago. Salary was approx EUR20K.
After less than a year I moved to a smaller hedge fund administrator and was handsomely rewarded with a 35% increse in salary. 4 years later I'm still with the same company, qualified as an accountant with quality experience under my belt. I've had exposure to NAV calculation for various fund structures, financial reporting experience, management accounting experience, reporting directly to senior management, VAT exposure, liquidations, budgeting... the list goes on.
If you are smart, hard working, enjoy working with numbers then go for it!
I would also strongly advise the professional qualification route. It really opens up your options.
Fund accounting can be a rewarding and exciting career and definately is for me!
Good luck!

paddyodoors said:

You will find the role is anything BUT a glorified admin role. I think without any other info than "a friend is a fund accountant" what you have posted is very misleading.

Does this person calculate The NAV of a fund? Deal with investment managers? brokers? investors? Deal with complex securites products? understand how and why they are traded? Have knowledge and apply accounting principles? double entry? balance sheet? Investigate and anaylse reconciliation breaks and return discrepenacies?

I doubt very much that a "glorified admin role" describes someone who is performing the above - maybe they work for a company involved in funds as a secretary?

Not being ambitious can apply to any entry level role - I would happily employ soemone who wants to stay at that level for 10 years at the same time as someone who wants to progress, provided they have the necessary inclination to understand the basics.

Paddy

Click to expand...

I'm only telling you what he tells me. He says it's a fairly brain dead admin job. He's well paid though.

The things you listed, surely most of them are admin tasks, and can be taught with small bit of on the job training? (Note: I'm ex-accountant)

I had previously considered doing accounting in college so if I go into fund accounting I'll definately do the professional accounting exams! I have another interview for the Naas branch of the company next week so I'll see how that goes! Glad to get some positive feedback aswell because all the previous forums I've read were of people trying to get out of it, which kind of scared me...but I'm sure you have that with every profession! The money is great starting off and there's 6 montly reviews for the first year which really show they appreciate you I think!

If you are interviewing for the "Naas" branch of this company,I'm fairly sure Iknow who that company is (worked for them about 5 years ago!) It is a great company for gaining experience in & you will learn there however the hours CAN be very long especially around month end. Having said that my boyfriend has worked there for over two years now & is earning very good money.

Don't be afraid to ask questions in the interview regarding typical working hours & overtime rates etc

Also in the majority of fund accounting companies you will be required to work some irish bank holidays.

As for the role being a glorified admin job-jobs are what you make of them,if you are enthusiastic & willing to learn you can generally get involved in projects etc down the road, but as with all careers you do have to start at the bottom & do some of the grunt work first.

Just to update, I got the job!!!

I also just started in fund admin. Which professional designations should I look to obtain?

Does the experience count toward CFA requirements?