Jobs .. Economy and Business .. Investment Manager

Nature of work

The main role of a corporate investment manager is to advise companies, institutions and governments on how to achieve their financial goals and implement long and short-term financial plans. A corporate investment banker works in dedicated teams focusing on specific transactions or market sectors. He/she also works alongside other related professionals such as lawyers and accountants. A typical corporate finance deal involves two stages:

  Origination: Assessing a deal's desirability, which is sometimes an innovative idea from the bank rather than the client. Financial models are used to simulate possible outcomes. This requires a deep understanding of a sector.

* Execution: Structuring and negotiating the detailed terms of a deal often in liaison with other professionals.

Many investment managers deal in three main areas:

* Mergers and acquisitions: Assisting clients with expansion to increase profitability, safeguard market position, diversify, and so on. A corporate investment banker manages the transaction process and assesses the target organisation and the impact of the deal. This involves knowledge of legal and regulatory issues in addition to sound financial knowledge and an in-depth understanding of the client's industry.

  Debt capital markets: Working with lenders such as financial institutions, agencies and public and private companies to support client debt. This includes restructuring debt, refinancing debt and raising new debt.

  Equity capital markets: Advising clients on how much capital to raise from where and when.

Although dealing with different specific business areas, project teams liaise with one another during the two phases of a deal in order to obtain relevant specialist information and market intelligence.

Typical activities on a day-to-day basis include:

  Thoroughly researching market conditions and developments.

  Identifying new business opportunities.

  Carrying out financial modelling then developing and presenting appropriate financial solutions to clients.

  Liaising with the chief executive and chief finance officers of large organisations.

  Co-ordinating teams of professionals including accountants, lawyers and Public Relation consultants and working closely with them.

Environment of work

An investment manager is increasingly keen to attract a diverse workforce. Most have internal support networks for under-represented groups.

The working environment can be extremely stressful as high expectations for targets are set. The industry is also strongly connected to the economy, and job availability and the amount of job losses fluctuate depending on how healthy the economy is

Many investment managers have global offices and offer trainees the chance to work overseas within the first two years. Once qualified, an investment banker may spend significant time working abroad

Professional life

Most graduates begin in analyst roles. These are two to three-year trainee positions after which they progress to associate level though candidates with MBAs may have direct entry. Associates typically have a team of analysts working for them.

Although responsibility increases with seniority, an analyst is still put on a steep learning curve and, in order to progress, he/she is expected to demonstrate more than just analytical skills. Additional competencies include strong leadership potential, sophistication of judgment, an understanding of client motivation and industry as well as expertise in the commercial context of his/her work. Being pro-active and gaining experience in as many areas as possible from an early stage, demonstrates commitment and a desire to move upwards.

Performing well not only leads to good bonuses and internal recognition, but also attracts outside attention - headhunting is common within the sector. High performers are in demand and it is not unusual for individuals or whole teams to be poached by other banks. Headhunting aside, regular moves between banks are possible. Experienced investment bankers may also move into senior management positions in industry, commerce or government.

It is also possible to enter investment managers after training as an accountant or lawyer. Specialist industry knowledge is highly valued, as is a range of talents, including quantitative skills and general financial knowledge.

The average starting salary is approaching the xxxxxxxx

 

Getting the job

An investment managers is interested in graduates from all disciplines, not just those with finance-related degrees. Standards are high and companies usually ask for at least a  degree with a strong, consistent, academic performance

Employers also look for commercial awareness and knowledge of financial markets. A second language may be useful, but is by no means essential.

The recruitment process normally has several tiers - an online application form, numerical and verbal reasoning tests; first interview/assessment centre and final interviews.

Competition for positions is fierce, so preparation and planning are essential if  a candidate wants to succeed at each of these stages.

Experience gained in back office functions within an investment bank also demonstrates a long term commitment to working within the investment banking environment

Skills

  Proven strong numerical and analytical skills.

  Excellent teamworking and team leadership skills.

  Communication and interpersonal skills.

  Strong project and time management.

  Dedication, energy and commitment.

  Self-confidence and ability to make difficult decisions.

  The ability to work under pressure and to cope well with stressful situation.

  Being, ambitious and confident.

  Being motivated and determinat.

Sources and references

  www.investopedia.com

  www.investment-jobs.com

  targetjobs.co.uk

  Arab Standard Classification of Occupations, 2008, Ed. Arab Labor Organization.

Summary

An investment manager provides a range of financial services to companies, institutions and governments. He/she manages corporate, strategic and financial opportunities including mergers, acquisitions, bonds and shares, lending, privatisations, and initial public offerings. A corporate investment banker also advises and leads management buyouts, raises capital, provides strategic advice to clients, and identifies and secures new deals.

An investment management is frequently used as a catch-all term. In reality, banks are made up of many divisions, and investment bankers perform a range of different functions within them. Traditionally, investment banking encompasses corporate finance, as well as mergers and acquisitions (M&A). The definition has blurred in recent years and may also include trading bonds and shares.