Investment management

The investment management sector is integral to the financial services industry, focusing on the professional management of various securities and assets to meet specified investment goals for investors. These investors may include institutions, such as insurance companies, pension funds, corporations, and individual clients. 

Investment management encompasses a broad spectrum of services, including portfolio management, asset allocation, and financial analysis. Firms within this sector range from large multinational corporations to boutique advisory firms, offering diverse opportunities for careers. 

Portfolio management 

Portfolio management involves the strategic planning and execution of investment portfolios tailored to the risk and return preferences of clients. Major players in this area include firms such as BlackRock, Legal and General, and Fidelity Investments. Roles within portfolio management include portfolio managers, research analysts, and investment analyst. These positions require a strong understanding of financial markets, analytical proficiency, and the ability to make informed investment decisions under varying market conditions. 

Asset allocation 

Asset allocation is a critical process in investment management, where the primary goal is to balance risk and reward by distributing investments across different asset classes, such as equities, bonds, and real estate. Companies like UBS, Schroders, and Aberdeen Standard Investments lead in offering asset allocation services. Professionals in this field, such as asset allocation analysts and financial planners, need to possess strong analytical skills, a deep understanding of market dynamics, and the ability to forecast future market trends. 

Financial analysis 

Financial analysis is another key component of investment management, involving the evaluation of financial data to guide investment decisions. This includes analysing financial statements, market trends, and economic indicators. Renowned firms like JP Morgan Asset Management, Goldman Sachs Asset Management, and PIMCO are known for their robust financial analysis capabilities. Roles such as financial analysts, risk analysts, strategists and quantitative analyst/researchers are crucial in this segment, requiring exceptional analytical skills, attention to detail, and proficiency in financial modelling. 

Alternative investments 

The investment management sector also includes alternative investments, such as hedge funds, private equity, and real estate. These investments often seek higher returns and involve more complex strategies. Firms like Capula Investment Management, Man Group and Brevan Howard, Bridgewater Associates, KKR, and The Blackstone Group are notable players in this space. Careers in alternative investments, such as hedge fund managers, private equity associates, and real estate investment analysts, demand a high level of expertise, strategic thinking, and the ability to navigate complex financial instruments. 

Fintech 

The UK investment management sector is also at the forefront of technological innovation. Fintech is one of the UK’s strongest startup sectors and successfully disrupting the traditional banking and financial services industry. The rise has led to the development of robo-advisors, AI-driven investment strategies, and blockchain-based asset management. Companies like Checkout.com, Revolut, Monzo and SumUp are in the top 10 in early 2024. Professionals looking to enter this space should have a keen interest in technology, data analysis, and a forward-thinking mindset. 

For students and graduates aiming to enter the UK investment management sector, numerous pathways exist. Internships, graduate schemes, and entry-level positions provide essential experience and exposure. Networking through industry events, professional associations, and leveraging university career services can also facilitate entry into this competitive field. The sector not only plays a crucial role in the economy but also offers a dynamic and fulfilling career path for those equipped with the right skills and ambition. 

Typical employers: 

• Asset management firms (Legal and General, Insight, Schroder, UBS and Blackrock.  

• Financial analysis (JP Morgan, Goldman Sachs and PIMCO) 

• Alternative investments (Capula, Man Group, Brevan Howard and Bridgewater) 

• Fintech (Checkout.com, Revolute, Monzo and SumUp) 

• London Stock Exchange 

Roles: 

• Asset management (portfolio manager, investment analyst, financial planner) 

• Financial (financial analyst, risk analyst) 

• Alternative (hedge fund manager, private equity associate, real estate investment analyst)  

• Fintech (data analyst, AI) 

• Actuary

Investment management qualifications 

Investment management is a specialised field, and obtaining relevant qualifications can boost your career prospects. Certifications such as the Chartered Financial Analyst (CFA) and the Chartered Alternative Investment Analyst (CAIA) are known in the industry. Additionally, courses offered by the Chartered Institute for Securities and Investment (CISI) and other financial training providers can be beneficial for both newcomers and seasoned professionals. There are also masters level qualifications you can look at.  

Skills 

Specific skills will vary between different jobs, but a career in investment management is likely to require the following: 

Recruitment process 

Major investment management firms have structured graduate schemes, with finance specialists in demand across various sectors. These firms typically have well-defined and widely advertised recruitment processes, often starting in the autumn term before graduation for roles beginning the following summer. 

Smaller boutique organisations are more likely to recruit on an as-needed basis. 

If you're interested in working for a specific company, visit their website and follow them on social media. Engaging with them through social media can provide insights into their culture and values. 

Attending University of Nottingham careers and employer talks can help you learn about potential employers and connect with recent graduates to understand what the roles entail. 

Vacancy sources: 

• City Jobs 

• eFinancialCareers 

• BrightNetwork 

• Asset management company websites 

• Specialist recruitment firms 

• Alumni networks and career services 

The future of the investment management sector in the UK looks promising, driven by several key trends and developments. Technological advancements, particularly in fintech, are revolutionising the industry, with innovations such as artificial intelligence, machine learning, and blockchain enhancing investment strategies and operational efficiencies. The growing emphasis on sustainable and responsible investing is also shaping the future landscape, as investors increasingly seek to align their portfolios with environmental, social, and governance (ESG) criteria.

Additionally, the UK's strong regulatory framework continues to evolve, promoting transparency and protecting investors while adapting to the challenges posed by a globalised market. The sector is expected to attract a diverse range of talent, with skills in data science, cybersecurity, and sustainable finance becoming increasingly valuable. As the industry navigates post-Brexit opportunities and challenges, the UK's position as a leading global financial hub remains robust, with London retaining its status as a premier centre for investment management. Overall, the sector is poised for dynamic growth, driven by innovation, sustainability, and a resilient regulatory environment. 

Gaining relevant work experience can be highly beneficial. Here are some opportunities:  

• Easter insight days and spring weeks: These are part of firms' ‘early talent identification’ programmes, often leading to summer internships and full-time job offers. 

• Summer internships especially finance internships  

• Online work experience through Forage, BrightNetwork or Chartered Insurance Institute (Financial Services Programme) 

• Part-time, holiday, or voluntary work: valuable experience can be gained through work in a financial or business setting. 

• Optional Placement Year - enhance your CV with a placement year in industry where you can gain invaluable experience at the cutting edge of business. The Witty Entrepreneurial Scholarship is for budding entrepreneurs in their placement year.  

• Nottingham Internship Scheme - provides a range of internship opportunities through partnerships with local and national businesses. 

• Attend the Management, Finance and Consulting Fair (held annually in autumn term) 

• Student Union - get involved with NEFS (Nottingham Economics and Finance Society) 

• Get involved in activities, especially positions of responsibility in societies or sports teams – there are so many, you're bound to find one that interests you! 

• Sports Leaders - develop practical and transferable life skills that you can then take forward in the career of your choice

• Nottingham Advantage Award - offers interesting extracurricular modules to develop your employability. With over more than 300 modules across our three campuses in the UK, China, and Malaysia. 

• Nottingham Consultancy Challenge - offers the chance to gain hands-on experience managing a short-term project for a local business or charity as part of a multi-disciplinary team. 

• Digital Marketing Academy - will allow you to learn about and develop a wide range of industry-specific skills with experienced professionals from leading digital agencies.   

• Enactus Nottingham - is a not-for-profit, student-led organisation that works to transform the lives of people in need through the power of business. They do this by setting up social enterprises that provide employment and their by-product does both social and environmental good.  

• Digital Centre of Excellence - take industry-recognised digital qualifications by Microsoft and SAP alongside your course, which will develop your digital skills and help you stand out to future employers.