Sungbo Shim, CFA
CAREER HIGHLIGHTS

• Graduated from Columbia University
• Started his investment management career in marketing and client services with The Carlyle Group through its wholly owned subsidiary DGAM
• Became a CFA charterholder in 2016
• Joined University of Toronto Asset Management Corporation (UTAM) in 2016 as a member of UTAM’s investment team

How has obtaining the CFA designation benefited you?

Through the CFA Program, one develops a strong foundation that’s essential for institutional investment management. The Candidate Body of Knowledge provides breadth across a variety of asset classes and practical topics, as well as depth in individual security analysis. These qualities provide a framework for analyzing portfolios, specifically by understanding and managing the risks driving a portfolio. Manager selection has been a constant area of focus and interest in my career path, and the CFA Program has complemented what I learn on the job in evaluating managers by refining my understanding of a manager’s investment process and philosophy with respect to security selection.

How is the material covered in the CFA program relevant to what you’re doing today?

The Level III content is especially relevant from an institutional investment management perspective as the focus is synthesizing what one has learned in Levels I and II, and applying this knowledge. Given the different challenges and risk and return objectives institutional investors face—whether they be pension plans, foundations, endowments, insurance companies, or banks— one obtains an appreciation for the nuances surrounding an institutional investor’s risk tolerance, investment time horizon, liquidity needs, and unique considerations and constraints. These topics have real-world relevance for institutional investors and those aspiring to work in institutional investment management.

What are the most valuable aspects of being a CFA charterholder?

People understand the dedication and effort that went into obtaining the CFA designation. Being a charterholder builds credibility and imparts a sense of being knowledgeable in a wide array of practical portfolio management and investment analysis skills. I would even say it’s an expectation, and the new minimum, for working in institutional investment management. Everyone I work with either has the designation or is going through the process of obtaining it.

Furthermore, once one obtains the charter and becomes a member of their respective CFA Society, one has access to a large network of professionals who can be leveraged to pool information and establish connections. The sheer number of people with diverse backgrounds and experiences that one can tap into and the wealth of information available are wonderful assets to have access to.

What advice would you give someone who’s considering pursuing the CFA designation?

Pursuing the CFA designation is a commitment, and one needs to appreciate and understand the effort that goes into learning and applying the material. There are no shortcuts with respect to the number of hours required to prepare for each exam. I see it as short-term pain, long-term gain: It’s an investment in yourself and your professional development that will yield significant dividends down the road, especially in terms of career advancement.

Can you share some thoughts on institutional investment management for someone considering working in this field?

This is a special place to be, and I wouldn’t be the professional I am today without those at DGAM and UTAM who took the time and effort to mentor and challenge me. I’ve found it takes a certain skill set and personality to succeed, and there’s a genuine intellectual curiosity that I find to be shared by those in this field. Active management is hard; it’s challenging to sustain excess returns over the market. Complacency is hazardous, as one must recognize when market dynamics have changed sufficiently to warrant certain strategies and asset classes out of favour after they have run their course, and have the intellectual courage and discipline to act on that recognition by shifting capital efficiently elsewhere. Within the context of manager selection, the job of the modern institutional investor is to discern a manager’s skill versus luck, timing, and other common or exotic factors that have driven returns. While challenging, it’s paramount that institutional investors are introspective and ask whether such risks are ones they wish to be exposed to.

What are your long-term professional goals?

I enjoy working in institutional investment management and wish to continue this trajectory. As a young professional, I aspire to becoming more knowledgeable in myriad asset classes and investment strategies, being more attuned to market dynamics and their implications, and seeking innovative, efficient means of evaluating portfolios and investment opportunities—all in the hope of becoming a better steward of capital.