Investment analyst
SIO is the professional body that represents the investment industry in Scotland. Since our founding nearly ten years ago, we’ve helped an enormous number of graduates begin challenging careers in our industry by educating them about our sector and providing links to companies, jobs and training.
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An investment analyst undertakes research to provide information and investment ideas to fund managers. The information that analysts provide enables fund managers to make decisions relating to the investment portfolios they manage.
Some analysts work for investment management companies, providing information to in-house fund managers; others work for stockbrokers and investment banks, where their research assists their employer's clients, usually fund managers/hedge funds.
Analysts and fund managers working in the UK may research investments globally. The principal UK investors (apart from individuals) are:
Investment analysts may be involved in a broad range of activities and disciplines, which vary according to the nature of the employer. Essentially, they need to develop an understanding of financial information, such as:
They must also develop expertise in interpreting such information and the implications it has for investment decisions.
An analyst may have a set of companies to research and get to know in depth in order to make informed recommendations to fund managers. These are usually companies in a specific industrial sector, such as retail, pharmaceuticals or utilities, or in a specific geographical area, such as Europe or East Asia.
Work activities usually include:
SIO is the professional body that represents the investment industry in Scotland. Since our founding nearly ten years ago, we’ve helped an enormous number of graduates begin challenging careers in our industry by educating them about our sector and providing links to companies, jobs and training.
Search for jobs with Scottish Investment Operations.
SIO is the professional body that represents the investment industry in Scotland. Since our founding nearly ten years ago, we’ve helped an enormous number of graduates begin challenging careers in our industry by educating them about our sector and providing links to companies, jobs and training.
Search for jobs with Scottish Investment Operations.
Although this area of work is open to all graduates, a degree in one of the following subjects may increase your chances:
Knowledge of other degree subjects may also be relevant, depending on your area of research; for example, life sciences will be relevant to work in pharmaceuticals.
Most employers seek a 2:1 or a first. Most will also require a minimum of 300 UCAS points at A-level (or equivalent).
Postgraduate qualifications are not essential, although a relevant Masters can help. Humanities students in particular may well find that a relevant Masters degree is helpful.
Pre-entry experience, such as work experience or vacation work in a financial institution or specific industry, is highly beneficial. Most financial companies use summer internships to pre-select graduate recruits. Competition for these is often more intense than for graduate vacancies, as there are fewer placements. London-based companies recruit across Europe and competition is high.
Candidates will need to show evidence of the following:
Computer literacy is essential, especially Excel, although some computer skills can be acquired during training. Language skills are also an advantage.
Participation in relevant student societies, e.g. those related to investment, economics and business, and evidence of an interest in the market, such as reading the financial press or running a shadow portfolio of securities, will demonstrate your interest in investment and impress employers.
Closing dates for entry to investment banks, stockbrokers and specialist fund management companies (also known as investment management and asset management) may be as early as the October of your final year and rarely later than the following January. Some companies, particularly the big investment banks, run structured graduate training programmes and recruit to them annually. Others may offer trainee positions as and when they are required.
For more information, see work experience and internships and search courses and research.
SIO is the professional body that represents the investment industry in Scotland. Since our founding nearly ten years ago, we’ve helped an enormous number of graduates begin challenging careers in our industry by educating them about our sector and providing links to companies, jobs and training.
Search for jobs with Scottish Investment Operations.
Training varies according to the nature and, particularly, the size of the company. Larger companies are likely to offer a structured training programme for graduate trainees. On-the-job training will be a significant feature. A trainee will usually be assigned to a specific team or to an individual within the team, e.g. a senior analyst.
Analysts in front-office roles, such as advising and dealing in securities, derivatives and investments, take Chartered Institute for Securities & Investment (CISI) qualifications. These include regulatory examinations that must be passed before analysts are legally entitled to give financial advice.
The Investment Management Certificate (IMC) of the Chartered Financial Analyst (CFA) Society of the UK (CFA UK) , which covers the regulations that investment companies and their staff must adhere to in the UK, is a minimum requirement for those working in the investment management field. Graduates joining investment management companies are, therefore, likely to take the certificate during their training.
Most of the investment banks now require their analysts to take the Chartered Financial Analyst (CFA) programme, which leads to a CFA charter. The CFA programme originated in the USA and has growing recognition globally. It is administered by the CFA Institute . Completing the CFA programme generally takes four years.
Employers in the investment management area often assist employees with their studies, offering financial support and time off for study and examinations. The IMC is a requirement of the Financial Services Authority (FSA) but it is also in the employer's interest to encourage staff to develop their skills and knowledge.
SIO is the professional body that represents the investment industry in Scotland. Since our founding nearly ten years ago, we’ve helped an enormous number of graduates begin challenging careers in our industry by educating them about our sector and providing links to companies, jobs and training.
Search for jobs with Scottish Investment Operations.
New graduates tend to spend their first three years as analysts, after which the bank decides whether or not to renew their contracts and consider them for promotion to associate level. After two to three more years, the next rung of the ladder is vice president and being the lead analyst on some of the smaller listed companies. Most analysts continue their careers as an investment analyst with the aim of becoming the lead analyst in a particular sector.
Other possible routes include:
Progression within a company will depend upon its size. In small investment firms, sometimes known as boutiques, opportunities to develop may not always arise. An analyst may choose to apply to other firms to progress or develop new skills. Relocation to another country, or to another major UK city, may be required to progress within a company or to a different role with a new employer.
SIO is the professional body that represents the investment industry in Scotland. Since our founding nearly ten years ago, we’ve helped an enormous number of graduates begin challenging careers in our industry by educating them about our sector and providing links to companies, jobs and training.
Search for jobs with Scottish Investment Operations.
Typical employers include:
The nature of the employer will determine the range of an analyst's activities. In larger firms, investment analysts may work as part of a team producing a summary of research or actually be involved in research and project and client management. In smaller firms, individual analysts may produce reports on their own.
More than most businesses, investment banking offers graduates the opportunity to spend some time abroad, whether through secondments, rotations or assignments. These opportunities are more likely with larger firms, such as the big investment banks. Emerging markets are becoming of particular importance and smaller offices are opening in Moscow, the Middle East and Africa. Language skills are important in a number of locations.
Specialist recruitment agencies can be helpful and eFinancialCareers is particularly useful. Direct approaches to companies may also be worth a try. The Association of Private Client Investment Managers and Stockbrokers (APCIMS) has a list of member companies on its website, as does the Association for Financial Markets in Europe (AFME) (now incorporating LIBA, the London Investment Banking Association) and Scottish Investment Operations (SIO) .
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SIO is the professional body that represents the investment industry in Scotland. Since our founding nearly ten years ago, we’ve helped an enormous number of graduates begin challenging careers in our industry by educating them about our sector and providing links to companies, jobs and training.
Search for jobs with Scottish Investment Operations.
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