Investment analysts study the performance of stocks and shares, to provide information to help stockbrokers and fund managers make decisions about the best investments for their clients.

They can work for:

• in-house fund managers
• investment management companies
• investment banks
• firms of stockbrokers.

Their duties may include:

• researching how their target companies are performing financially
• keeping up-to-date with political and economic developments that may affect financial markets
• monitoring the financial press
• examining company accounts
• analysing data
• producing reports for fund managers to use.
   

Hours and Environment

Investment analysts work long, irregular hours which can include weekend work. The London Stock Exchange opens at 8am, so investment analysts are usually at work by 7am.

They are mainly office-based, but may also travel to conduct research and meet clients. They may sometimes travel abroad if dealing with overseas clients.

Skills and Interests

To be an investment analyst you should:

• be able to analyse complex information
• understand business, economics and accounts
• have excellent written and spoken communication skills
• have good mathematical skills
• be interested in current affairs
• be able to work under under pressure and to tight deadlines
• be confident and determined
• work well as part of a team but also act on your own initiative.

Language skills - especially German, Japanese and French - can be useful if working with overseas clients and markets.

Entry

You will usually need a good degree (normally 2:1 or above) in a relevant subject such as:

• finance
• maths or statistics
• business studies
• accountancy
• economics.

Please check with colleges or universities for degree entry requirements.

Most analysts start as graduate trainees in investment banks or firms of stockbrokers. Some companies offer internship placements for university students to gain experience before graduating.

Some investment analysts need in-depth knowledge of specialist sectors, so you may find it useful to have experience in areas such as industry, engineering or life sciences.

Training

You will normally be trained on the job, often as part of a structured graduate training programme. You will usually begin by working with a senior analyst or team of analysts.

You will also usually study for a professional qualification from the United Kingdom Society of Investment Professionals (UKSIP), or the Securities and Investments Institute (SII), such as:

• UKSIP Investment Management Certificate
• SII Certificate in Securities and Financial Derivatives.

After around three years' experience, you could progress in the industry by taking more advanced professional qualifications, such as:

• UKSIP Chartered Financial Analyst (CFA) qualification through UKSIP
• SII Diploma.

You should also keep up to date with new procedures and regulations throughout your career. UKSIP and SII both provide short courses and training events for continuing professional development.

See UKSIP and SII websites for more information about their qualifications.

As an investment analyst you will deal with mainly with fund managers and stockbrokers rather than directly with clients, but you may still need to gain a qualification that meets Financial Services Authority (FSA) standards (such as the UKSIP and SII exams mentioned above). Please see the Financial Services Skills Council website for a full list of FSA appropriate examinations.

Opportunities

Although some investment analysts work in small UK-only firms, most employers are now international companies. Many jobs are based in London, but there are opportunities in other cities such as Edinburgh, Manchester, Leeds and others. Work is also available overseas at other major financial centres.

Promotion depends on past performance, and competition can be fierce. With experience, it is possible to move into other roles such as fund manager or stockbroker, or to become self-employed.

Annual Income

Figures are intended as a guideline only.

Starting salaries for investment analysts are around £25,000 to £30,000 a year.
Experienced analysts earn around £60,000 to £70,000.
Some analysts can earn more than £100,000.

There may also be extra payments and bonuses based on personal or company performance.

Salaries in London may higher than in the rest of the country.

Further information

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