Investment Management
- Description
- Tasks
- Skills
- Useful Knowledge
- Entry Qualifications
- Professional Qualifications
- Trends
- Resources
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Investment management is focused on increasing the value of assets on behalf of clients. These assets could include equities (shares), bonds, property and cash. Clients can be institutions who have large amounts of money to invest, or individuals. Wealth managers are sometimes called Private Bankers and their clients are generally high net worth individuals. Investment managers use different strategies to invest and they have to consider the asset allocation and construction of portfolios. Integral to their role is their relationships with investment analysts, who research and identify potential and hopefully lucrative growth and income opportunities that meet clients’ investment goals. Anyone working in investment management must adhere to regulations set by the Financial Services Authority (FSA).
Salary
A trainee investment manager can expect to earn an annual salary of approximately £28,000. When fully qualified, and with the right experience and skills you could progress to earn in excess of £100,000 per annum. This does not include potential bonuses and additional benefits. Salaries may vary based on location and employer.
- Developing investment strategies to meet agreed investment objectives
- Implementing an investment strategy, liaising with clients and dealing with their queries about the strategy
- Analysing the risk and return profile of asset types, monitoring markets relevant to the fund portfolio and the performance of competing funds
- Developing awareness of the tax environment within which specific investments and investors operate
- Constructing risk profiles for proposed client portfolio changes
- Preparing investment portfolio data for client reporting
- Reviewing, restructuring (as appropriate) and reporting on individual and corporate portfolios
- Monitoring and overseeing investment operations and administration activities (this activity may depend on the size of the organisation)
- Networking to maintain relationships with existing investment clients and foster new profitable relationships
- Analytical and strong investment evaluation skills
- Risk and quantitative analysis skills
- Outstanding networking and relationship management ability
- Excellent numerical reasoning
- Business communication and interpersonal skills
- Confidence and commitment
- Persuasive and credible
- Decision making and ability to act on own initiative
- Taking responsibility for decisions
- Teamwork skills
A new entrant will not always be required to have this knowledge. Employers usually provide training to acquire skills for:
- Sound knowledge and understanding of investment markets and different products
- Good knowledge of fund structures and asset allocation techniques
- Thorough understanding of the sector in which a fund is positioned
The main route into investment management is through a formal graduate programme. Some progress from investment analysis roles. Employers will require entrants to be numerate and typically ask for a 2.1 degree. Any degree discipline may be accepted, but some employers prefer a management, business, economics, financial or numeracy orientated subject. Each employer specifies exact academic requirements and preferred subject.
Investment management is a regulated function. One of the following qualifications is required to operate unsupervised and entrants may be expected to complete these within a set timescale:
- CFA Society of the UK (CFA UK) Level 4 Investment Management Certificate (IMC)
- Chartered Institute for Securities & Investment (CISI) Level 3 Certificate in Investments (appropriate for those working in wholesale investments)
- CISI Level 4 Diploma in Investment Advice (meets RDR compliance requirements for people advising retail clients on packaged investment products and Securities & Derivatives)
These qualifications meet the Financial Services Authority (FSA) full qualification requirements up to and after 1 January 2013. Please contact the FSA on 0845 606 9966.
With several years’ experience, investment management professionals may progress towards more advanced professional qualifications, such as:
- Chartered Financial Analyst (CFA) program
- CISI Level 6 Certificate in Private Client Investment Advice & Management (PCIAM)
- CISI Level 7 Masters in Wealth Management
Opportunities for fund and asset managers exist predominantly with investment management companies, banks, investment banks, insurance companies and pension funds. Additionally, wealth managers are found in private banks. London, Manchester, Aberdeen, Glasgow, Dundee and Edinburgh are key locations for this role, although some investment management roles may be found in other major financial centres. Most positions are based in the UK. However, due to the global nature of funds there may be opportunities for secure secondments and permanent positions in investment divisions overseas. Most global banks and fund management firms have offices in key financial districts, such as New York, Tokyo and Sydney, and in the main European centres of Paris, Frankfurt, Milan and Madrid.
