What skills do you need for a career in asset management?

Asset management isn’t easy to break into. The pay is decent and the work-life balance is even better – per hour, asset management employees earn more than investment bankers – but it’s not enough to simply want the job. What skills do asset managers need in their careers? What skills do asset management firms value?

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Above all, Alex Torrens, US head of UK asset management firm Walter Scott & Partners, says that asset managers value cognitive diversity. “Our job is to seek to invest in some of the best companies around the world, companies that will lead their markets over the next 10 or 20 years.”

Torren notes that asset management teams place significant emphasis on outside-the-box and lateral thinking, and that means that off-piste university subjects can be in high demand. “In analyzing companies and making those decisions, it doesn’t matter what subject you studied at university, but you do need to have a passion for finding and understanding those companies.”

That has become even truer in the age of AI. Asset management firms are increasingly able to produce massive amounts of analysis – first-pass analysis, at least – which means that the interpretation of that analysis is becoming increasingly important, especially for juniors.

Therefore, the originality of your contribution matters strongly, as well as your ability to work with others. “With a team-based approach, it is critical that the team functions effectively, and that demands diversity,” Torrens said. “For that reason, we don’t rule anyone in, or out, based on the subject studied or the university. Instead, we look for people who are inquisitive and curious in nature, and who have a strong interest in how businesses work.”

Soft skills are important regardless of where you are in a firm. For example, if you work in a distribution role, you need to be able to build relationships with investors. Communication skills are needed for portfolio managers too, who need to be able to understand a client’s needs, and to explain their investment decisions.

“Employers today are looking for investment professionals who combine deep financial expertise with a broader set of technical and human capabilities,” says Peter Watkins, Senior Director, Partnerships & Client Solutions at CFA Institute. “Core analytical skills remain fundamental, but they are increasingly being combined with AI and data literacy, analytical and ethical judgment, adaptability and learning agility, and communication, collaboration and relationship management.”

The rate of technological change might be the most important part of that. “AI is accelerating the demand for this hybrid model as increasingly professionals must be able to use AI critically, test its outputs, explain its limitations and remain accountable for the resulting decisions,” Watkins said. “Technology can help identify patterns and prepare analysis, but understanding a client’s circumstances, interpreting uncertainty, challenging assumptions and exercising sound ethical judgment remain fundamentally human responsibilities and the most effective professionals will be those who can adapt to incorporate all of these evolving skills.”

The more senior you get, and especially at portfolio manager (PM) level, the more your responsibilities become captaining and quarterbacking. CFA Institute says that PMs “devise and implement investment strategies and processes” depending on client needs, including making decisions on what positions a client holds. CFA Institute says that PM roles require investment idea generation, investment strategy development, and risk management skills.

“I look at questions and companies with a lot of orthogonal perspectives,” said Michael Beckwith, an equity portfolio manager at Capital Group on the firm’s Capital Ideas podcast earlier this year. “That's competitive advantage, management incentives, culture, corporate finance, psychology, history... bringing all those to bear ultimately allows me to allocate capital in a more effective way."

That is a mindset shift away from the technical grounding of an analyst role. "The role and responsibility of a portfolio manager is different than an analyst,” Beckwith said. “As a portfolio manager, I'm very focused on what is the composition of my returns... Is the portfolio running too hot? Is it running too cold?"

CFA Institute also says that PMs must “remain resilient and decisive when faced with potential underperformance and poorly performing financial markets.” That’s quite funny, in a way – S&P Global found that 79% of large-cap US equity funds underperformed the S&P 500 in 2025, one of the worst rates this century.

“You are not your P&L,” said Beckwith. “It is really easy to internalize your mistakes as an investor, and being able to understand your value and purpose outside of just how you're succeeding or going through a tough period is really important." BlackRock, the biggest asset management firm in the world, even goes so far as to track the cortisol of its portfolio managers to ensure they are in an optimal operating window to manage risk.

To make matters worse, Bloomberg reported in July last month that investment portfolios built by AI agents outperformed traditional 60/40 equities/bonds portfolios. Investors, meanwhile, are pouring their money into passive stock funds, which asset managers do not make as much money from – passive indices represent around 28% of AuM today and will represent around 35% in 2030, according to PwC. Asset management PMs might soon be hard pressed to justify their existence, if current trends continue.

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