Details of Desk Research:
An investment analyst undertakes research to provide information and investment ideas to fund managers. The information that analysts provide enables fund managers to make decisions relating to the investment portfolios they manage. Job Description:
An investment analyst undertakes research to provide information and investment ideas to fund managers. The information that analysts provide enables fund managers to make decisions relating to the investment portfolios they manage. These types of information can be found by studying public records and filings by the company, as well as by participating in public conference calls. Additional information can also be received in small group or one-on-one meetings with senior members of management teams. However, collecting information can be difficult and potentially illegal due to legislative changes brought upon by corporate scandals in the early 2000s. Some analysts work for investment management companies, providing information to in-house fund managers. Others work for stockbrokers and investment banks where their research helps employer’s clients, e.g. fund managers/ hedge funds. Analysts and fund managers working in the UK can research investment globally. Some of the key UK investors include: pension funds, life assurance companies, unit trusts, investment trusts, banks and hedge funds. In fact, investment analysts are often employed by mutual and pension funds, hedge funds, investment banks and may other businesses. Investment analyst read financial statements and analyst commodity prices, sales, costs, expenses in an investment bank. In Investment banks, investment analysts work in teams to analyse the future prospects of companies that want to sell shares to the public for the first time. Investment analysts also work in mergers and acquisitions departments, preparing analysis on the costs and benefits of a proposed merger or takeover. There are buy and sell side analysts. Generally, the analyst would meet with company officials to gain a better insight into a company’s prospects and to determine the company’s managerial effectiveness. Some investment analysts, called rating analysts who are employed by rating agencies evaluate the ability of companies or governments that issue bonds to repay their debt. On the basis of their evaluation, a management team assigns a rating to a company’s or government’s bonds. Other investment analysts perform budget, cost and credit analysis as part of their responsibility.
Type of work they undertake:
Investment analysts are involved in a range of activities which varies according to the nature of the employer. One of the key roles they need to undertake understands the financial information, such as: company accounts, sector data, statistics, economics and relevant political events. Investment Analysts also need to be able to develop expertise in interpreting such information and know the implications that the information has on the investment decisions. An analyst may have a set of companies for which they conduct research in order to get to know in depth of the market so they can make informed recommendations to fund managers. Usually, investment analysts study an entire industry, assessing current trends in business practices, products, and industry competition. They must abide by the new regulations or policies that may affect the industry, as well as monitor the economy to determine its effect on earnings. As stated earlier, analysts may be required to work in a range of activities which could have a broad range. Some of the works they usually undertake are as follows: * analysing financial information relating to specific companies, e.g. company results, profit and loss and cash flow statements; * regular communication with the management of the companies and their investor relations team, usually over the telephone but sometimes at their premises, e.g. at company...
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