Investment Analyst

Investment analysts study the performance of companies and industries. Information they source informs stockbrokers, traders and fund managers to help them make good decisions about clients' investments.

There are broadly two types of investment analyst:

• Sell-side analysts research individual companies for private investors and unit trust fund managers, studying a company's annual reports and financial statements to assess the company's outlook.
• Buy-side analysts look at investment opportunities for pension funds, investment banks, and insurance and life assurance companies.

Analysts tend to specialise in one industry sector or geographic region. As well as researching companies, they consider different factors, such as economic and political stability, changes in currency values and significant movements in commodity prices.

Investment analysts generally work Monday to Friday. They often start around 7am, staying until after 6pm, although this varies depending on time zones for markets being analysed. Mostly office based, they may travel in the UK and overseas.

Salaries range from £28,000 for junior analysts to £130,000 a year or more for senior and highly experienced analysts, with bonuses often available.

An investment analyst should be:

• inquisitive, with excellent research and analytical skills
• aware of global economics, current affairs, business and financial markets
• good at communicating and preparing presentations
• able to work independently and as a team
• decisive, with an eye for opportunities.

Analysts work in large financial institutions, including investment banks, stockbrokers and specialist fund or asset management firms. Most UK jobs are in London, with some opportunities in major cities. Competition for jobs is high.

Most investment analysts have a 2.1 degree. Studying economics, accountancy, maths and statistics is particularly relevant, but employers specify their own preferences. A second language may be useful. Increasingly, investment analysts have a postgraduate qualification. Although rare, there may be opportunities to enter junior research positions with A levels or equivalent. The Diploma in business, administration and finance may be relevant for this area of work.

New entrants follow an induction programme. Most training is on the job, working alongside experienced analysts. Employers often encourage analysts to study for relevant professional qualifications offered by the Chartered Institute for Securities and Investment, CFA Society of the UK and Association of Certified International Investment Analysts.

Promotion depends on performance. Successful analysts can usually become a vice-president within eight years, and then executive director. Analysts can move between the sell and buy side or specialise in a sector. Opportunities to travel and work abroad can be widespread.

Further details