I work in the captive of an asset management company, which has outsourced its modelling work to India. I build financial models and whenever I find something attractive I call the PM and discuss the idea with him. I am not allowed to talk to companies, the PM talks to the companies and gives me information to be put in the model. I have the following questions 1. How does this position compare with a BO/MO position? 2. My future goal is to become a buy side analyst in Singapore. Would this work ex be useful in achieving that goal? Thanks
- I don’t think this is BO at all. It sounds more FO than anything. 2. It would be more useful if you could speak with the companies directly or at least conference in with the PM.
XSellside, Thanks for your input. I used to visit companies (with the PM), when I was with my previous employer. My current employer does not invest in India and hence I dont have the opportunity to attend conferences, but as you said telecon is something I can look at.
Low Level FO.
Sounds like you have a PM who is pretty territorial over responsibilities that aren’t even that high on the totem pole. Why isn’t he or she allowing you to participate on calls with management? Have you asked them for the opportunity to do so? At the least, why not listen in and just mute your line? It seems like a lower grade front-office job - it’s a job that could be better if you were either more proactive about your tasks or if your manager wasn’t trying to limit your participation (I can’t tell right now which case it is)
I have talked about this to my PM, he said listening to the meeting (without asking questions) is a possibility. He says he is worried about regulatory issues related to a person sitting in country X making recommendations about stocks listed in country Y to a PM in country Y. Although I dont really make any recommendations
Ethics 101 - when dealing w/ multiple countries’ regulatory systems, the stricter of the two (or CFA standard) will apply; and if the PM is the final word on recommendations etc, he should be the front line of ensuring decisions/recommendations fall within regulatory requirements. You’re not contacting clients directly, so he just needs to concern himself w/ regulations re: his client contact. I think…
sounds like BOM to me…he just doesn’t want to let you out of the cage.
Sounds like your PM is full of it
batterinram. I was just curious and wanted to make sure i’m reading your post right… So you work in India and a U.S. Asset Management firm is having you put models together for them? If this is right, is it common for U.S. firms to do this?
Bill, It is not a US firm, the firm is located in the Asia Pac region. To answer your question, yes it is common for US firms to outsource modelling work to India. Most of it is just model updation, but some of the work also involves building models from scratch. It happens both on the buyside as well as on the sellside. Goldman, JP Morgan, Fidelity, HSBC have their captive units in India, where this sort of work is done.
outsourcing is an amazing thing. I’m sure I read somewhere many years ago that if you didn’t want your job transferred overseas you should get an education and a white-collar job. I guess that even that doesn’t apply anymore. Don’t get me wrong, I’m not against outsourcing and transferring jobs, I’m a firm believer in comparative advantage - it just amazes me how just about anything can be done cheaper (and better or at an equal standard I assume) somewhere else. I have a feeling that the only job which in the future will guarantee you good pay and no chance of it being shipped off overseas is to be a politician. We’ll all be nations of politicians. What a lousy thought…
or masseurs and masseuses. cant be outsourced
yeah, i said good pay though - prostitution may be another ,though there ain’t much difference between being that and a politician anyway…
From my experience the sellside and the buyside tend to look at outsourcing differently. The sellside thinks like more jobs in India=less jobs in US= cost savings. For a buyside firm it is more about increasing the IB (as CFAI calls it). Buyside thinking is like let a PM have 4 analysts in India looking at 600 stocks and if the analysts are able to come up with 15 ideas out of 600 that the PM likes then we can make a killing without spending much. Sellside outsourcing=less jobs in the US Buyside outsourcing<>less jobs in the US
batterinram Wrote: > increasing the IB (as CFAI calls it). sorry, what is IB? > Sellside outsourcing=less jobs in the US > Buyside outsourcing<>less jobs in the US interesting point, thanks
IB=Investor Breadth (L3 Material)
batterinram Wrote: > Sellside outsourcing=less jobs in the US > Buyside outsourcing<>less jobs in the US which company are you working for ?
Dont want to reveal too much in a public forum. Never know when its going to comeback and haunt you.