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Between 2006 and 2009, 0.6% of working doctoral graduates, or 35 employed doctoral graduates, are known to have been working as financial analysts six months after graduation.

Job description

Financial analysts are classified in the ‘other common doctoral occupations' cluster of doctoral employment.

A financial analyst undertakes research to provide ideas and information to fund managers. The information analysts provide enables fund managers to make decisions relating to the investment portfolios they manage. Some analysts work for investment management companies, providing information to in-house fund managers; others work for stockbrokers and investment banks, where their research assists their employer's clients (usually fund managers). Analysts and fund managers working in the UK are likely to research investments globally.

The principal UK investors (apart from individuals) are:

  • banks and major companies
  • investment trusts
  • life assurance companies
  • pension funds
  • unit trusts.

Typical work activities

Analysts may be involved in a broad range of activities and disciplines, which vary according to the nature of the employer. Essentially, they need to develop an understanding of financial information, such as:

  • Company accounts
  • Statistics
  • Economics
  • Relevant political events

They must also develop expertise in interpreting that information and the implications for investment decisions. An analyst may have a set of companies to research in depth in order to make informed recommendations to fund managers. These are usually companies in a specific industrial sector, such as retail, pharmaceuticals, or utilities, or in a specific geographical area, such as Europe or the Far East.

Typical work activities include:

  • Researching and analysing financial information relating to specific companies e.g. a new set of accounts, profit and loss and cash flow statements
  • Conducting regular meetings with the management of the companies, sometimes at their premises e.g. to discuss issues arising from the accounts
  • Keeping up to date with market developments, new investment products and all other areas that can affect the markets e.g. movements in the economies of relevant countries
  • Considering how the economic implications of factors such as natural disasters, weather, wars, etc. might affect the performance of companies and funds
  • Monitoring the financial news using specialist media sources, producing summaries of research for fund managers
  • Making presentations and recommendations regardingwhich funds should be included in portfolios, and meeting regularly with fund managers
  • Maintaining liaisons with the management of companies and with fund managers, often by phone.

Entry requirements

A degree in one of the following subjects may increase your chances:

  • Mathematics
  • Statistics
  • Economics
  • Accounting

But, overall, any doctoral graduate who can demonstrate the necessary skills, regardless of discipline, can enter the profession.

Candidates will need to show evidence of the following:

  • High levels of numeracy, and the ability to research, analyse and evaluate
  • The ability to work under pressure - to produce reports to deadlines, for example
  • Communication skills including the ability to present effectively, self-confidence, drive and tenacity
  • An interest in current affairs, and an appreciation of their impact on the market
  • Initiative, and the ability to work effectively in a team.

Computer literacy is essential, although some computer skills can be acquired during training, and additional language skills may also be useful. Evidence of an interest in the market, such as reading the financial press or running a shadow portfolio of securities, will demonstrate your interest in investment and impress employers.

Salary

  • After five to eight years, salaries rise to £65,000 - £100,000, with bonuses of 40% - 150% possible.
  • Typical salaries at senior levels can be £110,000 - £130,000, with bonuses of up to 200% of salary (salary data collected July 2009).

Sector and disciplinary information

Sector information

Doctoral graduates in this occupation were known to be working in the following sectors:

Disciplinary background

Most entrants have undergraduate degree qualifications, but this is an area where high numeracy can be a real benefit and so doctoral graduates with demonstrably excellent skills in the area may find themselves at an advantage.

The most common disciplinary backgrounds for doctoral graduates (2006-2009) entering financial analysis were:

Career stories

Dr Norman Dalgleish 

Financial planner, Turcan Connell

"The investment world's a strange world where you deal with large sums of money, but you are very, very divorced from the person whose money it is. What I wanted was to be closer to that individual person and really that was when I decided to become a financial advisor, the job I do today."

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