Top Investment Management Roles: Most Desirable Positions

Investment management is a lucrative and fast-paced career that offers a range of sought-after positions. From analysts to managers, these roles come with high earning potential and the opportunity to work with diverse clients. With the right blend of education, experience and skills, professionals can guide clients' financial decisions, manage complex portfolios and even navigate high-stakes deals. So, what are the most sought-after jobs in investment management?

Investment Analyst

Job Description

There is usually some level of direct interaction between the investment analyst and the management of the companies they are researching or similar key players, such as stockbrokers, fund managers, and stock market traders. Analysts often travel frequently and may spend a few years at a foreign location to build local knowledge and forge professional networks.

Qualifications

A bachelor's degree in finance or business is the most common minimum requirement for an investment analyst. However, degrees in accounting, statistics, and economics may also be accepted by prospective employers. MBAs and higher degrees in math or financial disciplines are common, especially among analysts who move into management positions.

Many employers also require a few years of practical experience in lower-level analyst positions and economic modelling in related industries. The primary certification for investment analysts in the US is the Chartered Financial Analyst (CFA) designation, which is highly regarded in many areas of the financial industry.

Career Path

The most common career path for investment analysts is to move into a senior investment analyst position or a portfolio manager position. After gaining experience as a portfolio manager, the next step is either a senior portfolio manager or chief investment officer. Other investment analysts become independent investment consultants, offering their expertise to financial firms on a freelance basis after gaining several years of experience and developing a network of industry contacts.

Salary and Benefits

The current median salary for investment analysts is just over $67,000, according to Payscale.com in October 2022. Bonus and profit-sharing structures are common, with bonuses as high as $20,000 and profit-sharing up to $12,000. Commissions up to $11,000 annually are also reported. There is a dramatic difference in salary with experience, with entry-level salaries typically under $60,000, while 10 to 20 years of experience can bring salaries of $100,000 and over.

Job Prospects

The job prospects for investment analysts are solid, with a projected growth rate of 9% through the year 2031, according to the BLS. The work is demanding, requiring long hours and frequent travel, but the pay and benefits are good, and a majority of current analysts report high job satisfaction.

Investment Manager

Roles and Responsibilities

Skills and Qualifications

Excellent communication skills, the ability to obtain and sustain a client's trust, analytical skills to interpret market information, and the ability to understand financial data are all important skills for investment managers.

A bachelor's degree in a field such as financial management, economics, business, statistics, finance, mathematics, or accounting is typically required to become an investment manager. Popular options to advance in this career path include becoming a CFA or CAIA Charterholder or earning an FRM designation or a master's degree in business management or administration.

Career Prospects

According to the U.S. Bureau of Labor Statistics, there were over 650,000 financial manager jobs in the U.S. in 2020, with a projected employment growth of 17% from 2020 to 2030.

Salary

The salary for investment managers varies depending on location and experience. In the United States, Glassdoor reports that annual salaries range from $51,000 to $172,000. The U.S. Bureau of Labor Statistics reports a median annual salary of between $83,664 and $134,180 for financial analysts and financial managers in 2020.

Challenges

Investment management is a competitive and demanding field. Investment managers need to be able to cope with stress and thrive in a fast-paced, ever-changing environment. They may also need to be available outside of regular working hours to address client concerns or monitor market conditions.

Sales and Client Relations

Client relationship managers work with senior executives, sales managers, technical managers, finance directors, and others who make or influence sales decisions. They also may work directly with clients to address problems or overcome other obstacles. They monitor industry trends to identify new sales opportunities and to brief the product development and sales teams to meet client needs. They use data to establish revenue targets and identify the resources needed to meet them. Research and analysis of competitor trends are also important to assess potential threats to the firm's relationships with clients.

Organizing training, planned maintenance, and other services to help clients get better and more efficient use from products or services is another role for client relationship managers. They might also help set up online ordering and payment systems that simplify the commercial arrangements with clients.

Investor Relations

IR is typically part of the public relations department, but in some companies, it may be managed by the public relations or corporate communications departments. In smaller companies, IR functions are often outsourced to independent investor relations firms. IR professionals need strong communication skills and the ability to develop and maintain business relationships. They must also have a solid understanding of financial reports, analytic methods, and financial data tools.

A typical day in IR involves analyzing data and industry trends for upcoming presentations, meetings with finance teams, and attending events with key shareholders. IR professionals also need to stay informed about current and upcoming issues that may impact the company, such as fiduciary duty, organisational impact, and stock-trading patterns.

IR plays a crucial role in crisis management, such as corporate downsizing, changes in management, product liability issues, and industrial disasters, as these events can significantly impact the company's share price. The Sarbanes-Oxley Act of 2002 increased the importance of IR by implementing new requirements for corporate governance and regulatory compliance, with a strong focus on accuracy in auditing and public disclosure.

IR professionals can make a significant impact on a company's success, especially during mergers, IPOs, or SPACs, by ensuring transparency, compliance, consistency in communication, and effective relationship building with investors.

Portfolio Manager

The role requires a range of skills, including ideation, research, communication, and risk management. A portfolio manager must be able to conduct in-depth research and analysis, interpret data, and make timely investment decisions. They must also be able to communicate complicated strategies in simple terms to their clients.

To become a portfolio manager, a bachelor's degree in finance, business, economics, or a related field is typically required. Many portfolio managers also possess additional certifications, such as the Chartered Financial Analyst (CFA) designation, and/or licenses from the Financial Industry Regulatory Authority (FINRA).

The average base salary for a portfolio manager in the US was $128,350 as of December 2023, according to Glassdoor. However, salaries can vary depending on factors such as experience, company, location, and type of portfolio managed.

Frequently asked questions