Tag Archive for: asset management

By Janet Walker, Director, Asset Management, Abbot Downing

Atoms are the smallest units of matter; they gave rise to cells.

Embryonic stem cells come from an embryo, and are undifferentiated and undefined, but multiply, grow and develop into a variety of cells – and ultimately a living, breathing human. The development and coordination of cells into a functioning organism is not fully understood, but scientists are working to decipher this every day. Understanding what keeps everything in our bodies in top working order and determining the causes of problems, from the physical to the emotional and mental, is a curiosity that has fueled me for as long as I can remember. The study of asset management, from understanding the complexities of capital markets to deciphering investor behavior, is surprisingly similar.

My path to asset management was atypical. As a young girl, I was driven by the desire to solve medical problems, to help people, in spite of my own obstacles. I lived in and out of shelters and in a constant state of fear while I was at home, struggling to cope with a physically abusive, unstable and alcoholic father. After becoming an emancipated minor, I finished high school and ultimately college, singularly focused on the desire to go to medical school. My path was not linear and was certainly full of obstacles, but I thrived and succeeded.

My college experience and path to graduation was not straightforward, nor what you might expect for a typical college student. I attended what was affectionately called a “commuter” school, where many of the students balanced school with full time jobs. I began as an Engineering Major and discovered that not only was the subject matter not what I expected, but that I was completely unprepared to thrive in an environment that was so unwelcoming to women at the time. I considered switching to Business Administration, but ultimately found my way to the School of Life Sciences, with a reputation of producing highly skilled scientists. I majored in Cell and Molecular Biology, minored in Chemistry, and loved every minute of it. From studying in the classroom to enduring the rigors of lab research, I found that my intellectual curiosity and desire to go to medical school were in sync. The challenges from my home life however, continued to follow me into college.

In spite of a laundry list of accomplishments and qualifications, I wondered whether I would be prepared for medical school, and looked to professors and others for guidance. Rather than listening to my own voice and following my passion, I took a detour and entered a PhD program in molecular biology at a renowned medical school, on the advice of my mentor. I found myself studying in a field that required a high degree of technical focus and less interaction with people – and while I enjoyed the technical and intellectual aspects of this path, the mismatch became clear.

Returning to the West Coast, I found myself in need of a job. Throughout college, I worked in a number of fields, including a short stint as an administrative assistant in Wells Fargo Private Bank. At the time, I was told that there would be an opportunity for me if I ever wanted to return, so I took full advantage of it. The position wasn’t ideal, but I worked hard to find a way to make it my own. The world of finance was completely new to me, despite a few business electives I took in college. I was curious, highly ambitious and thought creatively about how to make it my own. Initially, I obtained a number of securities licenses, and ultimately the Chartered Financial Analyst designation, to accustom myself to the industry. At the same time, the healthcare and biotechnology industries were coming into focus within the finance industry, driven by technological advancements and major discoveries. I used my technical knowledge, research skills and curiosity to bridge a divide, learning how discoveries in science were transforming the financial services industry.

During my 20-year career at Wells Fargo I have combined the fields of science and finance, working to understand global stocks, how they fit into an investment portfolio, and how the construction of a portfolio is impacted by exogenous factors such as geopolitics, economic forces and investor attitudes. The desire to understand complex situations, determine the root cause of a problem and educate and guide clients is surprisingly similar to my childhood aspirations. I successfully manage a complex book of assets with the added benefit of being able to work with a complex and dynamic group of incredibly talented people.

The journey has not always been easy or straightforward, but I’ve persevered by being flexible and embracing change. Much to my surprise, the tools that I have picked up along the way have helped me tackle success and challenges in my personal life. Marriage, the birth of two children, the sudden loss of my husband, are events that you can never really prepare for. Much like career uncertainty, I think it’s what you learn from these events that’s key.

Everyone defines success in a different way. From working with atoms to now working with assets, I’ve learned that my pathway to success involves listening to my inner voice, following my passion and moving through the obstacles that try to derail me, with grace and a positive, forward looking attitude. Success and challenges are inevitable, how we navigate through them is the key. I never thought that I would be a widow, raising two beautiful girls on my own. Success or challenges, either personal or professional, don’t define who I am, but instead shape who I’ve become.

Ann MilettiBy Ann Miletti, co-lead portfolio manager of the Wells Fargo Asset Management Private Market Value (PMV) Equity team

When I tell people what I do for a living, I am often met with puzzled looks.

These experiences always remind me that asset management is a complex and often misunderstood business – despite the fact that the industry is inextricably involved in the financial and retirement plans of most Americans. Since it is Women’s History Month with International Women’s Day celebrations still resonating, with the theme #betterforbalance, it is a great time to talk about realities, myths and opportunities that come with working in asset management. And, how it is an underdiscussed career path that many women could take, in many forms, either on the retail or institutional side of the business.

My Journey to Co-lead Portfolio Manager

I’ll admit, when I started my career as an elementary school teacher, I would have had the same reaction. However, 29 years ago my path took a sharp turn that caused me to fall into asset management in a most unconventional way. After my son was born with a serious heart defect, I needed to stay home to care for him while my husband worked during the day. But the tremendous financial implications of his illness and of life in general did not allow me to remain unemployed. So, I found a job working the midnight shift at a call center for a local financial firm. This job allowed me to learn about the financial markets and various product offerings from the ground up. Unbeknownst to me at the time, it would be the stepping-stone for a successful career as a portfolio manager at Wells Fargo Asset Management. I currently, along with my team, manage about $4 billion in assets.

Still today, if you ask a high school or university student who is exploring career options or majors what a fund manager or asset manager does, most do not know. Sadly, if they do know anything, it may not be something positive. Hollywood, the media and politicians often portray the financial services industry – and Wall Street in particular – as immoral, driven by greed and selfishness.

In all honesty, asset management, like most industries, has produced its fair share of bad actors. And the financial crisis of 2008 further tarnished the reputation of financial services overall.

Yet the true value of asset management is rarely discussed, which is unfortunate. I firmly believe that the majority of asset management professionals go to work each day with the goal of creating wealth for their clients and helping them prepare for their financial needs, both for today and for the future. Today, our industry in some way manages about $28 trillion in retirement assets in 401(k) plans, pensions and other vehicles.1 Our mission is to help people achieve their dreams, such as sending their children to college, buying their first home, preparing for retirement or something much bigger.

Asset management provides a worthy and fulfilling career – a notion that I believe remains widely misunderstood. For example, I know the returns we generate for our clients are meaningful and make a significant difference in their lives. And without finance, the economy would not grow, creating fewer jobs and hurting all of us, no matter your profession or financial standing.

How do we change the perception?

To start, we need to educate people at younger ages about financial literacy and encourage them to practice responsible money management skills. This is something I am both passionate about and involved in with high school-age kids today.

We as an industry must also stop talking in jargon that is difficult for a mass audience to understand.

In addition, asset management and financial services in general need a pipeline of curious, dynamic-thinking, and diverse people. To attract the right talent, our industry must do more to educate everyone about the value that we provide to individuals, families and society.

We need to more actively embrace diversity, including encouraging young women equally and early to be interested and  confident that they belong in the asset management field – and maybe, most importantly, that they are needed because of their skills.

In research conducted by Wells Fargo Investment Institute,2 we found that women’s attributes such as patience (trading less), discipline (through asset allocation) and a willingness to learn (seeking advice from an investment professional) have allowed them to earn higher returns on their investments for the risks they do take. That is essentially the essence of investing – maximizing returns in the face of risk.

We must find ways to communicate the financial stories of success. Hollywood may have immortalized the slogan “greed is good” with many of the recent depictions showing a persistently evil industry – but that just isn’t so. Nest eggs have grown, college educations have been paid for, endowments have been built up and civic building projects have been completed. These are just a few examples of how society has benefited from the industry.

I am grateful for my career in asset management, a field that thrives on the many strengths and attributes of women.