Chartered Financial Analysts work in sell-side firms such as broker-dealers, banks, and insurance companies. As sell-side analysts, CFAs identify investment opportunities for the firm's clients or proprietary investments for the firm's account. Some CFAs working within an investment bank must mediate concerns about promoting the firm's clients. Corporations use the services of an investment bank to raise capital, either in a primary (initial public offering) or secondary issue. Ethical vigilance is an important part of the CFA's role. Fair, accurate, and authentic investment assessments must be provided at all times.
Chartered Financial Analysts also work in buy-side firms, such as asset managers, money managers, and mutual funds. These firms' primary business involves managing client's capital. Buy-side analysts may have fewer potential conflicts of interest than an investment banking analyst. She may present investment opportunities to the firm's portfolio managers. If she works as a portfolio manager, she may like performing some of her own investment analysis.
An additional role sometimes presents in asset management firms. Some CFAs perform portfolio analysis, management, and quasi-marketing duties. These CFAs market the services of their organization while working to manage their clients' assets. In these roles, buy-side CFAs look almost like financial advisors on the sell-side.
Opportunities abound for CFAs in the alternative investment industry. Hedge funds manage their clients' and firm capital, usually according to a specific strategy or groups of strategies. If a CFA works for a convertible arbitrage hedge fund, the CFA spends most of his time analyzing convertible bonds and their relationship to common stock and other securities. If the CFA works for a real estate investment fund, she analyzes many factors, including mortgages, real estate depreciation, and property cash flow. If a CFA works for a value-focused private equity firm, she may analyze the balance sheets of prospective portfolio companies whose assets appear inexpensive to the market.
CFAs remain in strong demand throughout the financial services community. Becoming a CFA earns job seekers the favorable attention they deserve from human resources and employer hiring managers.