Tag Archives: Chartered Financial Analyst

Changing Perceptions Interview with Carol Schleif, CFA – Deputy Chief Investment Officer

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Carol Schleif is everything a role model for young professionals should be. With her dedication and go-getter attitude, Schleif has swiftly climbed the financial ladder to her current position as Deputy Chief Investment Officer at Abbot Downing; which was recognized as The Best National Private Asset Manager by Family Wealth Report Awards in 2016. But, where did her career in the financial industry start?

While studying equestrian science at William Woods University with hopes to become a horse trainer, Schleif decided to explore other options and found herself fascinated with her economics and marketing classes. In ‘83 she had graduated in an impressive three years with two degrees: one being equestrian science, the other being business administration.

She landed her first job as an Administrative Assistant with Edward D. Jones in Missouri. One of her more interesting duties for this position was clipping obituaries from local newspapers to prospect widows. “Not for me,” she decided. One thing Schleif did take away from this position was that when she had to make calls to the home office, she noticed, “The only people that ever knew what was going on were the folks in the research department.” So she decided to move home and pursue her interest in research departments.

Schleif then almost immediately started her next job at Piper Jaffray as a Market Strategist and started working on her Chartered Financial Analyst designation right away. After three years of industrious dedication, she distinguishably passed her CFA exams in ‘86.  When it was time to move on from her position at Piper in ‘87, she went on to work various positions such as Vice President and Research Analyst for First Trust, Director of Research at John G. Kinard & Co., and ultimately recruited by Lowry Hill, Abbot Downing’s predecessor, and has been there ever since. Schleif strived to incorporate her interests in economics, writing and strategy into her various positions. Along the way, she also stressed the importance of a well-developed research department and the respect it could bring to the company. It is clear to see that with each position, Schleif both learned more about the industry and contributed to the betterment of each company.

Where is Schleif currently at in her career and how was she been so successful?

Schleif currently holds the important position of Deputy Chief Investment Officer at Abbot Downing. Some of her duties include: creating and communicating the firm’s Asset Management Strategy, managing client relationships, and business development. On top of this, she serves on the firm’s Asset Allocation, Investment Themes, Investment Governance, Editorial and Publications Committees. She is a published writer and in 2016 was a Top Women in Finance Honoree. After having a conversation with her, it was obvious to see how much Schleif truly loves and is passionate about her job. She says, “I love my job. It’s a fascinating business and I feel fortunate to be able to do it here in the Midwest.”

In addition to her passion, her merit has contributed greatly to her success. She distinguishably graduated as Valedictorian of her high school class and Salutatorian of her college class. Schleif also stresses the importance of reading. Every day, she reads a variety of material such as Psychology Today, The Financial Journal, local papers, and New York Times. Schleif describes herself as a planner and goal setter. She explained, “Every year I try to look at what I’ve done and what has worked and what hasn’t. Then, I try to get better.” She even sets her computer password to a goal or aspiration she has, so every day she is reminded of it.

What has it been like to be a successful woman in the male-dominated financial industry, and what kind of advice does Schleif have for young women pursuing similar careers in investments?

Schleif sees a substantial benefit of being a woman in the world of investments. She says, “We bring a whole different level of analysis and emotional intelligence, skills and perception.” Nowadays, with more and more companies focusing on cognitive diversity, it is important to have women bringing their strengths into the investment field. However, Schleif believes a significant reason why more women are not pursuing these types of careers is because there is not a “cool depiction” in the media of women in financial positions. She points out that the only fun female role in “The Wolf of Wall Street” is Margot Robbie in a bubble bath.

While there is a substantial need for women in positions such as Wealth Managers, Asset Managers, and Advisors, they are not pursuing these careers. Schleif states, “The growth of women in the financial industry has been flat compared to other industries. We need to get the message out there that these really are viable careers.” She has been discussing with other women in the industry on how to get this message out and inspire women to consider these positions. As a grandmother to three granddaughters, Schleif strives to set the example that women really can be successful in this industry. Seeing the growth of women in the industry remain flat, and with her granddaughters as inspiration, she says, “I don’t dare retire until we move that needle a little further.”

What final advice does Schleif have for young professionals seeking jobs in the financial industry?

As a mentor with CFA Society Minnesota, and a member of the Board of Trustees at the College of Saint Benedict, Schleif is passionate about helping young professionals get started in their careers. She has a lot of hope and sees considerable potential in these younger generations.

One of her favorite quotes is, “Long days, short years.” While approaching 35 years in the industry, she explains this as the perception that some days can feel never-ending, especially when clipping obituaries from newspapers. However, 35 years, several positions, multiple publications, three children, and three grandchildren later, the time surely does seems to fly. So, as Schleif has modeled, do what you love and what you are good at, and don’t forget to enjoy it along the way. Success will follow, as it has clearly done for her.

 

Student Interviewer

Maria Vitale is a sophomore at the University of St. Thomas studying Economics and Political Science. She grew up in Stillwater, Minnesota and plans on pursuing careers in the financial industry upon graduating in 2020. Maria hopes to incorporate her passion for writing in any position that her career path may take her.

Changing Perceptions Interview with Diana Schutter, CFA – Retired

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Tell me a little about yourself.

After graduating from high school, I enrolled in a State college with a plan of studying music and theater. The following year, my education took a different course when I accepted an entry level position in the investment department at a public pension fund. I needed full time employment and this position offered tuition reimbursement for college courses in business and accounting. At the time, I didn’t know anything about investments and was uncertain if this was the right decision, but my boss was very encouraging and told me a business education could be very rewarding. Over the next eight years I attended the evening program at the Carlson School of Management, earning undergraduate and graduate degrees from Carlson School of Management. During that period I was promoted to assistant investment manager and that set the stage for what turned out to be a successful, forty-year career in investment management and investment consulting.

What sparked your interest in the investment industry and CFA Program?

I earned the CFA Charter in 1994. At that time I was the in-house investment manager for a legal publishing company, where I also held positions as Chair of the Investment Advisory Committee and Trustee for the company’s defined benefit plan. I was responsible for how the employee benefit funds and corporate assets were invested. Later, the company was bought out and my job was eliminated. A woman that I knew had just been recruited to develop and lead the investment advisory practice in an accounting firm. She asked if I would join her practice because some of the executives at my former company were interested in having an independent advisor. That’s how my career changed from investment management to investment consulting.

What was your experience with the CFA Charter?

I was previously a member of the of the Twin Cities Society of Financial Analysts and there were no requirements as long as you worked in the industry. Later, new members were required to pass the CFA Level 1 Exam. When I went into consulting and had to build a business, the CFA was very beneficial. At the time our consulting firm was started in the late 90’s, most institutional investors did not know what the CFA Charter was. However, following the tech bust when there was a big fallout in the capital markets, the CFA gained more recognition among institutional investors and became more respected and then again after the 2009 financial crisis. Therefore, in the field of investment consulting, the CFA credential was very beneficial to my career success.

Did you have a mentor or champion who was instrumental in your career?

The person who hired me for my first job. He was very encouraging and showed me that you can’t have a closed mind when thinking about potential career changes. He opened my eyes to numerous opportunities.  In my experience, his encouragement and willingness to hire and promote a female in the mid-1970’s was unusual.

What professional opportunities and challenges have you experienced?

My biggest challenge was that the ethics in this business is on average not good. With 23 years of experience where my role was to invest funds of the employer, I wasn’t trying to sell my services to clients and everything I did, I thought was the very best for my employer. When you are in the advisory business, there are so many things that constrain what you can offer a client for advice. Whether it is technology and resources you have, or that you decided to affiliate with another party, it influences your advice and you may not always be giving the best solution. That was the hardest thing for me. For my new business, I had three partners and we wanted to go into consulting in our own firm so that we wouldn’t be confined to that culture where it wasn’t always in the client’s best interests. Our dedication to that cause hurt us in terms of how much we could grow, but we did well enough.

What is your experience with starting your own business?

Our consulting firm was founded as part of a “spin out” of twelve clients from the accounting firm where my business partner and I worked to develop an investment advisory practice for two years. In 1998 our firm was started with two principals (including myself) and one associate. We invested $60,000 of our own money for working capital. Over the next 14 years our firm grew to 9 employees and 55 clients with aggregate assets of 3 billion.

What is the biggest risk you’ve taken in your career?

The biggest risk was starting my own firm and each year thereafter the potential risks increased as new clients were added, new employees hired and assets under advisement grew larger. As a registered investment advisory firm we were cast in a fiduciary position with respect to investment advice, which increases the costs for insurance protection.

What got you here; how have you been successful in investment management?

As explained earlier, I believe the combination of my work experience with internal funds management and education were contributing factors. The reason my second employer (where I worked for 12 years) hired me was my experience in internal-funds management. Today, most investment consultants who advise institutional investors don’t have that hands-on experience of performing securities analysis or initiating trades. Those work opportunities I think made me a better consultant.

18% of CFA Institute’s members are female, and 14% of CFA Society Minnesota members are female. Do you have any thoughts on why more women aren’t pursuing a career in investment management?

The numbers have changed, it’s surprising that the number entering the field is not proportional to the number rising through the positions and responsibilities. A career in the investment industry is taxing especially if you are a woman with a family and have other obligations. Some companies are trying to change their culture to allow for the flexibility needed for us to be able to succeed. There is also a huge amount of sexism, but CFA Institute and companies are working to improve that.

Do you have any advice for young professionals interested in a career similar to yours?

If you’re looking at positions within the investment management field, some of the larger foundations that have a staff managing their investments is a good place to start because then you are truly investing for the specific objectives of that client and not influenced like you would be if you are investing and representing a management firm. You can start in larger foundations to get a good understanding and background then branch out.

 

Student Interviewer

Lise Arakaza is an international student from Rwanda in her final year at Gustavus Adolphus College. She’s a Financial Economics major and Gender Women Studies minor with hopes of working in banking or an investment advisory firm.

Changing Perceptions Interview with Jeannette Parr, CFA – Senior Portfolio Manager

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Tell me a little about yourself.

I am originally from Nebraska, and went to the University of Nebraska-Lincoln majoring in finance. While there, I got a good taste for money management through a student-managed fund opportunity. I came to Minneapolis after graduation and started out at a small equity firm with 10 employees. After a year, the principals couldn’t agree on a philosophy and things fell apart leaving us young folks looking for new jobs. This brought me to what is now ING where I got familiar with fixed income I was hired as a trader, and moved into an analyst role making high yield corporate bond recommendations. That led to a portfolio manager role focused on insurance company portfolios. Because Minneapolis was such a great center for financial management, brokers would sponsor road shows – breakfast meetings to ask management questions, learn about companies and risks involved. I met folks at American Express and when they had an opportunity and knocked on my door, I had to say yes. It really propelled my career forward, and I spent the next 10 or so years there.  Like many women at that stage in their career, the demands of family and work can be difficult to balance. My husband and I had two big careers, three busy children and felt we needed to  make a tough decision. While it wasn’t the best financial decision, we agreed both of us would be happier if I spent more time with the kids, so I took a five-year break. After that, I took a position at the University of Minnesota, which was a good way to transition back into the markets and fulfill my intellectual curiosity. Working with students on an investment fund was a great opportunity for me to get reacquainted with the tight network of mentors at the university from our local investment community. This is how I met the CIO at Prudent Man Advisors where I currently work; we manage money for public entities across the Midwest. My current role as portfolio manager in a small firm is a nice cumulation of everything I’ve learned in the industry.

What sparked your interest in the investment industry and CFA Program?

Math was a subject that I enjoyed but didn’t have a clear career path. I was encouraged by professors early in my college years to take the actuarial science path but realized it was more theoretical than I wanted. I preferred an applied math route and switched back to finance I learned about the CFA Program through my undergraduate finance professors and jumped into the CFA Program 1 year after graduation as I was used to studying and it dovetailed nicely with my work. My employer supported me in the process, paid for my exams and offered career potential. I was surrounded by CFAs in the investment department.

How did you land your first role?

It took a long time to find my first job, which can be true today. Back then the effort was focused on newspaper want ads and sending out resumes by mail. It can be highly competitive and you must be persistent and believe in yourself. I encourage recent graduates to actively pursue their career goals. Whatever role you want, put yourself in a position to interact with those involved and do what you can to manage your own portfolio, even if it is hypothetical. Be persistent and continue to learn. You’ll find the opportunity, though it may take time.

Did you have a mentor or champion who was instrumental in your career?

All of my bosses along the way were influential. Doug Hedberg, CFA at Washington Square Advisors was my main mentor early in my career. He gave me lots of opportunities to try new things. One example was being a young professional and voicing a contrary opinion that high-yield bonds weren’t gone forever after failure of Drexel and Michael Milkenhad caused in the market. It was a way to grow in my presentation skills, embrace that it’s okay to voice an opinion and take some risks.

What professional opportunities and challenges have you experienced?

I do feel like it’s a bit of a male dominated field. Early on if you were not playing golf on Friday afternoons with the rest of the leaders you had more challenges. I had clients that preferred a male portfolio manager so there was overcoming some of those gender preference hurdles. The industry can be a bit like a locker room; there’s a lot of culture that stems from a male dominated way of doing business. I was still able to thrive and move forward staying true to my beliefs, morals and values. One of the most interesting aspects of finance is the ability to learn about so many different industries and have an inside view of how the world is changing. Transferring that information into wealth accumulation and risk management for clients so they can achieve their goals is very satisfying.

What is the biggest risk you’ve taken in your career?

Stepping away from the field and spending time with my family. I wondered if I was ever going to come back and how it would alter my future path. Had I known then what I know now, it would have made the decision so much easier! It worked out just fine. During my break, I managed my own portfolio, went to some CFA meetings, kept my CFA Charter going and stayed in touch with that circle. I think there’s always a door open and an opportunity will arise.

What got you here; how have you been successful in investment management?

I think the key to success is being informed and humble; I saw a lot of people along the way who weren’t long-lasting. Some investment ideas work for a short period but burn out quickly. To have staying power, you need all the things that CFA Charter stands for. If you balance all those things, the financial industry is a great place to help a lot of people and institutions reach their financial goals. We all have to deal with finance in one way or another, it’s a skill-set that transfers well in people’s lives.

18% of CFA Institute’s members are female, and 14% of CFA Society Minnesota members are female. Do you have any thoughts on why more women aren’t pursuing a career in investment management?

I think culture is part of it, women not knowing if they’ll fit in. Secondly, it tends to be highly competitive. Hard driving teams are not always that welcoming to women’s typical work style or interests. The industry is also known for some long hours, so it can be a tough work/life balance.

Research has proven that the returns of diverse investment management teams out perform those of non-diverse teams. Have you seen this in your experiences?

I do think whether it’s gender or other kinds of perspective, groups benefit from that variety. We all come to the table with different experiences and having a diverse team does help. It’s a field where you debate ideas, and the more angles you have, the more developed that thesis can be. Communicating a message is also key to success, and having a professional staff that is reflective of your client base can be very beneficial.

Do you have any advice for young professionals interested in a career similar to yours?

Try to spend some time with people in the industry talking to friends of your parents, neighbors, etc. You’ll be surprised how small the world is; someone is always a phone call or two away. Don’t be intimidated, know that the steps in this career path are achievable and attainable.  Take the time to build the foundation and follow the path that is most interesting to you. There are many directions the industry and the CFA can lead you.

As a longtime CFA Charterholder, how have you seen the CFA Program and industry evolve?

One of the biggest changes is that information is so much more available. It used to take lots of staff to create a financial model for a company. Now we have data downloads and with a push of a button, instantly 10 years of history. You must be a good consumer of information to be able to discern fact from fiction. The markets are faster, there’s less time to gather information (compared to road show days) and to vet ideas. Different skills are required than you might expect; practice writing and speaking, the best investment idea doesn’t get anywhere if you can’t communicate. Developing all of those soft skills will help you go far.

 

This interview was conducted by CFA Society Minnesota’s Member Services Manager, Diane Senjem.

Changing Perceptions Interview with Dr. Mary Daugherty, CFA – Financial Educator, Consultant and Corporate Director

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With her merited achievements and stark determination, Dr. Mary Daugherty has successfully shaped a career that utilizes her CFA designation and PhD all the while keeping her personal values a priority. When hearing about her numerous successes, many wonder, “How did she get started?”

When Daugherty distinguishably earned her Chartered Financial Analyst (CFA) designation in ‘86 by consecutively passing the grueling series of three exams, she could not have predicted the path her career was about to take.

After earning her general business degree from the University of St. Thomas in ‘80 and receiving her Master’s degree in Finance from the University of Minnesota’s Carlson School of Management in ‘82, Daugherty took her first professional position as an equity research analyst for First Trust. This is where she met her mentor, Gerry Bren, who she describes as an instrumental influence on her career.  After a six year career developing her skills as an equity research analyst, Daugherty was about to take the biggest risk in her career by leaving not only First Trust, but also the entire industry to pursue a new path. That path being college teaching.

When Daugherty gave birth to her first child while at First Trust, she tacked on her company-allotted two weeks of vacation in addition to her six weeks of maternity leave in order to meet the demands of mothering her newborn daughter. However, her boss discouraged her from taking this extra time off as he said, “You are an officer of this company, so you should set an example.” Daugherty took the extra two weeks but did find FedExed documents on her doorstep for her to work on during maternity leave. It was not until she received a call from her husband while on a business trip in New York that she decided to leave her current position and look for a more accommodating career. She learned she had heartbreakingly missed her daughter’s first steps.

“Similar to many professional women in that era, I looked for an opportunity that would allow me more flexibility while still staying active in my professional community,” says Daugherty. So, what was the next step?

She simultaneously enrolled in a PhD program at the University of Minnesota while accepting a teaching position in the Finance department at the University of St. Thomas. During this time, she proceeded to have three more children and impressively wrote and defended her dissertation on private college endowment management. After six years of “a complete blur,” as she describes it, she earned her PhD in ‘93 and focused on building her consulting practice while also teaching as a professor at the University of St. Thomas. She would go on to receive four awards for excellent teaching awarded by faculty, students and alumni, and has been nominated for several more. Daugherty is known on the St. Thomas’ campus not only as an outstanding teacher, but as a generous, understanding and committed mentor.  She says, “I love my job as a professor and do my best to bring out the talents in every one of my students.” Through mentoring, lining up job opportunities and helping students reach their full potential, Daugherty is always eager and happy to help anyone who knocks on her door.

While continuing with her teaching career, she decided to further utilize and monetize her PhD and CFA designation, and pursued consulting opportunities with individuals and corporations, including U.S. Bank. While building upon her consulting business, another mentor taught her an indelible trait. Daugherty says, “Tom Holloran role modeled by example how to collaborate and work together with people to get great things accomplished. I learned a lot by observing Tom in action. Tom recommended me for my first Board position.”

How has Daugherty created such success for herself in every aspect of her career, and what advice does she have for others in this industry?

Exceptional merit is not the only thing that has contributed to Daugherty’s success, “I don’t even know how to say ‘I can’t’.” She says this trait of insistent perseverance was ingrained into her through her family and mentors. As a mentor herself, she frequently tells her students, “I will always help those who help themselves.” In order to be successful in this industry she stresses the importance of reaching out to peers, taking on new challenges and look for opportunities to learn.

As a professor and consultant, Daugherty has a true passion for helping people. She currently serves on four different boards of directors and is an advisor and professor for the Aristotle Fund at the University of St. Thomas. She encourages all students pursuing jobs in finance and investments to get their CFA designation because of the “appreciation and breadth of knowledge” it entails. She also cannot stress enough the importance of reading and being well versed in all subject areas in order to further enhance one’s diversity of thought. In a world of increasing technology she reminds us, “Robots can do anything we can do, but they cannot be resourceful and creative. I would take a resourceful person over a smart one any day.”

Daugherty also strongly encourages young women to consider careers in the financial and investment industry. Presently, while businesses are more willing to accommodate the needs of mothers, she sees the male-dominated culture of this industry as still being prominent. While advising the Aristotle Fund, Daugherty has observed a wider range of ideas and problem solving strategies brought to the table when female and male students are collaborating. She urges more women to jump into the world of finance in order to bring different perspectives into this industry and ultimately bring a change to the current culture.

With her 35 years of success in the financial world, Daugherty would give young professionals this specific piece of advice, “Absolutely get a job, any job, and then be the best at that job you can possibly be.” This is certainly how Daugherty has seen such success in each aspect that her career path has taken her. Nevertheless, it is clear to see that, as a professor, she has ended up in a position she is highly skilled at, truly passionate about, and that which provides her an abundance of gratification. She recognizes how fortunate she is to be able to say that she leaves her “office”, her classroom, almost every day with a smile on her face!

 

Student Interviewer

Maria Vitale is a sophomore at the University of St. Thomas studying Economics and Political Science. She grew up in Stillwater, Minnesota and plans on pursuing careers in the financial industry upon graduating in 2020. Maria hopes to incorporate her passion for writing in any position that her career path may take her.

Don’t Get Thrown for a Loss

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Craig Popp, CFA

CFA Society Minnesota encourages its members to contribute to Freezing Assets.  This is piece written by one of them to help individuals identify a trustworthy investment advisor.

On October 23, 2016, 60 Minutes aired a story titled “Thrown for a Loss” that detailed how dozens of NFL players lost over $40 million in an investment brought to them by their financial advisor. These individuals invested in a risky entertainment and gambling complex built in Alabama. Mistakes were made that caused the losses. One of the biggest was also the first—the individual these NFL players hired to advise them. Catastrophe may have been avoided had more time been taken to vet their financial advisor.

The financial advisor you choose to work with is among life’s important decisions. I believe the vast majority of us are trustworthy; however, bad apples do exist. Unfortunately, the process of selecting an advisor is intimidating. Therefore, people make their decision based upon uninformed criteria such as:

  • He/she goes to my church.
  • I see their ads on TV or hear them on the radio.
  • I’m related to him/her.
  • He/she drives a nice car (or has another other status symbol), so he/she must be good at what they do.

The fact is none of the above offer insight into the person’s integrity, competence, or qualifications. A good financial advisor will tell you the questions you should be asking. If not, here’s a list to get you started.

  • What is your wealth management process?
  • What is your investment management process (the two are different)?
  • How are you paid?/What are your fees?
  • Do you earn incentives from the products you recommend to me?
  • Do you have any business relationships with any outside financial firms?

The above questions can provide meaningful insight. The first two questions allow you to compare between multiple financial advisors. Their process should be disciplined, repeatable, and remove human emotion. The final three show transparency, or lack thereof. Watch how these questions are answered. The advisor should be comfortable describing fees. Every professional (doctor, lawyer, accountant) receives compensation for their services. Many investment products contain fees that aren’t prominent to the investor. If a financial advisor tells you there’s no cost, it’s a red flag.

The direct method of asking questions is effective. However, there are also indirect red flags to watch out for. Be aware for the person that sells past performance rather than a process. Also, many advisors offer seminars to the general public and/or to their clients. Unfortunately, the intent of these seminars is to sell you a product rather than provide education. That’s financial sales, not financial planning.

With the above in mind, it can still be a daunting task choosing among the 285,000 financial advisors in the United States (according to Reuters). To narrow that list, consider working with a CERTIFIED FINANCIAL PLANNER™ professional or Chartered Financial Analyst. Members of these professional organizations sign an annual ethics pledge. It states they will act with integrity, independency and objectivity, and put your interests first. Individuals who attained either designation completed a rigorous education and examination process they don’t want to jeopardize.

Finally, utilize tools to help you in this process. One such is BrokerCheck. It’s from FINRA (Financial Industry Regulatory Authority) and helps you research the professional backgrounds of brokers and brokerage firms, as well as investment advisor firms and advisors. Your attention should be placed on the disclosures section. Disclosures can be any customer complaints or arbitrations, regulatory actions, employment terminations, bankruptcy filings and any civil or criminal proceedings the individual was a part of.

Look how often the individual has switched firms. My personal opinion is that this is also a red flag. Reasons for departure are not given, so I would suggest asking. This industry heavily recruits, often paying the advisor to switch firms. Those who do that often are probably looking out for themselves rather than you.

The process of hiring a financial advisor should be completed with the same diligence as buying a home, car, or television. With the tools to perform the proper research and ask the right questions, you can find someone who puts you first.

 

Craig Popp, CFA is a Financial Advisor with Raymond James Financial Services, Inc. Member FINRA/SIPC located at 115 Litchfield Ave SE, Willmar, MN. Craig Popp can be contacted at craig.popp@raymondjames.com. Any opinions are those of Craig Popp and not necessarily those of RJFS or Raymond James. Expressions of opinion areas of this date and are subject to change without notice. Investing involves risk and investors may incur a profit or a loss. There is no strategy that ensures a profit or guarantees against a loss. Past performance is not a guarantee of future results.