Investment manager

Investment managers work in the financial sector, managing equity funds, fixed interest stocks and company shares, currency or property on behalf of clients looking for the best return on their investment. Employers include fund and asset management groups, insurance companies and the investment management divisions of banks.

Work activities

Investment managers buy, sell and manage equity and fixed income funds, stocks and shares, cash deposits and currencies, or property, on behalf of clients who are looking for the best possible return on their investment, consistent with the risks they are prepared to run. The investment management industry manages investments for a wide range of clients. These can be divided into wholesale – the bigger institutions and corporates – and retail – private individuals and small businesses and organisations where the level of protection for client assets is higher.

Managing portfolios (collections) of assets, whether for a single pension fund or for a unit trust with thousands of investors, is essentially the same job and, in many firms, one manager could be running a handful of different portfolios of investments for pension funds, unit trusts, charitable foundations and high net worth individuals. Investment management can either be discretionary (where the client delegates investment decisions to the manager) or non-discretionary (where the client retains more control over investment decisions).

Investment managers make decisions about what to buy and sell to achieve the best balance for the fund. They often work closely with, and take advice from, investment analysts, in order to make those decisions. A number of investment managers conduct their own research. This can involve visiting companies, in-depth analysis and other forms of research such as talking to industry specialists. There is usually also an element of client service. Investment managers write reports and newsletters for investors and will need to answer questions about the performance of their funds.

Some investment management companies running complex investment portfolios might require their senior staff to provide technical training to some of their larger clients. Senior investment managers might also have responsibility for client relationship management and new business generation. This is likely to include writing detailed business proposals and could involve giving presentations to potential clients. Investment managers need to maintain a broad, up-to-date knowledge of the relevant investment markets. There are also likely to be some staff management responsibilities.

Personal qualities and skills

As an investment manager, you’ll need to:

Take decisions calmly and rationally.
Understand world business and financial affairs.
Be capable of evaluating complex financial information.
Understand your clients’ requirements.
Work as part of a team.
Be aware of analytical trends and current activity in the financial markets.
Liaise effectively with clients and gain their confidence.

You should have:

Excellent verbal and written communication skills.
Good judgement.
An eye for detail.
Financial knowledge.
Time-management skills.
Business experience.
Negotiating skills.
IT skills.

Foreign language skills can also be helpful. For many posts, you will need supervisory skills for managing teams of people.

Pay and opportunities

The pay rates given are approximate. According to job site Payscale, investment managers earn between £35,000 and £109,000, at an average of £66,000.

Salaries are generally increased by performance-related pay and bonuses. Other benefits could include private health care, gym membership, medical insurance, and life and pension cover.

Investment managers often work long hours, which could include early mornings and late evenings.

Employers are fund and asset management groups, pension funds, life assurance companies, unit and investment trusts, the investment management divisions of banks, and stockbrokers. There are also openings with large companies that manage their own investment portfolios, with some local authorities and with major charities. Opportunities for investment managers occur in some larger towns and cities throughout the UK. However, most work is located in London, with a significant number of posts in other major financial centres, particularly Edinburgh and Glasgow.

Where are vacancies advertised?

Vacancies are advertised in national newspapers, on financial job boards and on employers’ websites.

Entry routes and training

To become an investment manager, you usually need financial management experience in, for example, accountancy, banking, economics or insurance, and usually a relevant degree. Some degrees include investment and financial analysis. There are also postgraduate courses in investment and in investment analysis. People might start their career as an investment analyst; others might enter as a trainee investment manager, progressing to manager within a few years.

You could also begin a career in this profession by undertaking a level 6 (higher) apprenticeship in the role of financial services professional.

Investment managers can progress by taking responsibility for larger or higher-risk funds. Some might become directors or partners in their organisation.

Rehabilitation of Offenders Act: working as an investment manager is an exception to the Rehabilitation of Offenders Act 1974. This means that you must supply information to an employer about any spent or unspent convictions, cautions, reprimands or warnings, if they ask you to. This is different from other careers, where you only have to reveal information on unspent convictions if you are asked to.

Qualifications

For entry to a relevant degree course such as economics, statistics, maths, finance or accountancy, the usual minimum requirement is:

Two to three A levels.
GCSEs at grades 9-4 in two to three other subjects.
English at either level.
Maths at A-level for degrees in maths or statistics.
Maths at GCSE grade 6 or above if not taken at A-level, for degrees in economics. Some universities require/prefer A-level maths.

Alternatives to A-levels include:

Edexcel (BTEC) level 3 National qualifications.
International Baccalaureate (IB) diploma.

Adult opportunities

Age limits; it is illegal for any organisation to set age limits for entry to employment, education or training, unless they can show there is a real need to have these limits.

Adult applicants usually need a relevant degree and professional experience in accountancy, economics, banking, broking or insurance. Some entrants have a background working in investment as, for example, a researcher or analyst, or have other financial management experience. Experience or knowledge of particular industrial and business sectors is an advantage.

If you don’t have the qualifications needed to enter your chosen degree course, a college or university Access course (for example, Access to economics, statistics or accounting) could be the way in. These courses are designed for people who have not followed the usual routes into higher education. No qualifications are usually needed, but you should check this with individual colleges. Postgraduate courses in investment can be taken, usually following a numerate or other business-related degree.

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