Education programmes of job
Financial Markets MSc Banking
Financial Economics and Banking MSc
Economy MSc
Nature of work
An investment analyst may be involved in a broad range of activities and disciplines, which vary according to the nature of the employer. Essentially, he/she needs to develop an understanding of financial information, such as: Company accounts.
Sector data.
Statistics.
Economics;
Relevant political events.
He/she 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 Gulf countries.
Work activities usually include:
Analysing financial information relating to specific companies, e.g. company results, profit and loss and cash-flow statements.
Regular communication with the management of the companies and their investor relations team, usually over the telephone but sometimes at their premises, e.g. at company result meetings.
keeping up to date with market developments, new investment products and all other areas that can affect the markets, e.g. movements in the economies of relevant countries.
Considering how the economic implications of factors such as natural disasters, weather, wars, etc. might affect the performance of companies and funds.
Monitoring the financial news using specialist media sources.
Writing research reports and investment ideas to be sent to clients.
Ensuring that they meet the numerous compliance regulations.
Maintaining regular communication with clients by telephone, email and in person, including updating fund managers/hedgefunds on investment ideas and summaries of research.
Making presentations and recommendations as to which funds should be included in fund managers' portfolios.
Environment of work
Working hours can be long, e.g. 10 hour days Working within a team of analysts is common. Initially he/she will support the lead analyst and it may take several years before you cover companies yourself.
Meeting deadlines, long working hours and working under pressure may be stressful.
Travel is often required to visit company managements.
Professional life
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:
Progressing into management, supervising others and/or taking on responsibility for an investment area or type of fund.
Continuing to develop expertise in a chosen field and becoming recognised for specialist knowledge, expertise and results.
Becoming a manager in charge of investment in a specific organisation. e.g,. an insurance company or in-house pension fund;
Becoming a specialist sales person. This role is often based on the trading floor and involves relationship building for a particular sector.
Moving to a hedge fund to do a similar role on the buy side.
Moving into investor relations.
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.
Range of typical salaries :xxxxx – xxxxx
Getting the job
These colleges majors are closest related to this career. Mathematics.
Statistics.
Economics.
Accounting.
Knowledge of other degree subjects may also be relevant, depending on his/her area of research. For example, life sciences will be relevant to work in pharmaceuticals.
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.
Certifications provide an advantage in the job market because they show professional competence in a specialized field of investement. Investment analysts seek certifications from a variety of professional societies.
The certifications are:
CIIA Certified International Investment Analysts
AFA Accredited Financial Analyst
Skills
Candidates will need to show evidence of the following: The ability to research, analyse and evaluate.
The ability to work under pressure, e.g. producing reports to deadlines.
Numeracy.
strong written and oral communication including the ability to present effectively.
self-confidence, drive and tenacity.
An interest in current affairs and an appreciation of their impact on the market.
The ability to work effectively in a team and being Initiative.
An entrepreneurial mind set.
Good attention to detail.
Computer literacy is essential, especially Excel, although some computer skills can be acquired during training. Language skills are also an advantage.
Sources and references
www.aciia.org, Association of Certified International Investment Analysts www.financialanalyst.org, AFA Accredited Financial Analyst
www.prospects.ac.uk
Arab Standard Classification of Occupations, 2008, Ed. Arab Labor Organization.
Summary
An investment analyst undertakes research to provide information and investment ideas to fund managers. The information that an analyst provides enables fund managers to make decisions relating to the investment portfolios he/she manages.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.
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:
Company accounts.
Sector data.
Statistics.
Economics.
Relevant political events.
He/she must also develop expertise in interpreting such information and the implications it has for investment decisions.