SFU-009 - Module 1 (Chapters)

Hello, and welcome, I’m Hannah Williamson, an Investment Manager, and I’m your industry expert guiding you through this Springpod For Universities Online Career Readiness Experience, in association with The University of Liverpool. As somebody who has worked in this field for a long time, I’m really excited to invite you to and encourage you through an opportunity that could seriously boost your career prospects. Throughout this experience, you’ll be provided with a deep dive into the Finance Industry, learn about what it means to work as an Investment Manager, and get hands-on experience with the hard skills of ‘Investment Advisory’. I’d like to say this—I wish I’d had such an opportunity back when I was studying! Being competent in Investment Advisory will give you a real competitive edge - after all, hard skills are the currency of today’s workplaces. Employers are on the lookout for candidates who not only understand the fundamentals but can also walk into a job on day one ready to contribute meaningfully. By completing experiences such as this, you’re one step closer to being that candidate. In addition, we’ll focus on the all-important soft skill of Analytical Reasoning. Mastering Analytical Reasoning will increase efficiency, foster innovation, and enhance communication. What’s not to like? You’ll get the chance to complete industry-validated, work-based activities that mimic real-world tasks, complete with learning objectives, model answers, and learning outcomes. By the end of the experience, you’ll earn a certificate of completion - a valuable addition to your CV that shows employers you’re not just another graduate but a job-ready candidate who stands out. Speaking from personal experience, the blend of these technical skills and interpersonal insights can set you apart from the rest. When I started out, I had to learn many of these lessons on the job. This experience gives you the advantage of developing them before even stepping into the workplace. I’m really looking forward to seeing where your Investment Management journey takes you, and guiding you along the way! Warm regards,

Hannah Williamson Investment Manager

Shaping your future

Let's start with the basics of the Finance industry. In the next four chapters, we'll explore the key areas and roles you can pursue within this field, along with the latest industry trends. Be sure to take notes as there's a quiz at the end!

Chapter 1

Chapter 2

Chapter 3

Finance Industry

What is Investment Management?

Hard Skill: Investment Advisory

Start

Chapter 1

Index

Finance Industry

The Finance Industry is a vast and multifaceted sector that encompasses various disciplines aimed at managing money, investments, and financial planning. It involves the application of financial theories, practices, and tools to drive economic growth, ensure financial stability, and maximise returns. Here is an overview of the Finance Industry, including its key areas, roles, and trends.

What we'll cover...

What are the key areas of this industry?

What job roles can I pursue?

What are the current trends?

Conclusion

Chapter 1

Key areas

What are the key areas of the Finance Industry?

Asset Management

Corporate Finance

Investment Banking

Retail Banking

Financial Planning

Wealth Management

Risk Management

Insurance

Chapter 1

job roles

What job roles can I pursue in the Finance Industry?

Investment Banker

Portfolio Manager

Financial Analyst

Risk Manager

Identifies and mitigates financial risks.

Analyses financial data to support business decisions.

Manages investment portfolios on behalf of clients.

Assists clients in raising capital and provides financial advisory services.

Insurance Underwriter

Corporate Finance Officer

Financial Planner

Wealth Manager

Manages a company’s financial activities.

Assesses risk and determines insurance policy terms.

Helps individuals and businesses plan their financial futures.

Offers financial planning and investment advice to individuals.

Auditor

Loan Officer

Evaluates, authorises, and recommends approval of loan applications.

Reviews financial statements and ensures regulatory compliance.

Click the job roles to reveal more info!

Chapter 1

Current trends

What are the current trends in the Finance Industry?

Fintech Innovations

Digital Transformation

Sustainable Investing

Cybersecurity

Regulatory Changes

Globalisation

Data Analytics

Customer Experience

Remote Work

Chapter 1

Conclusion

So, in conclusion…

The Finance Industry is a dynamic and evolving field that plays a crucial role in driving economic growth and ensuring financial stability. It spans various disciplines, each with its unique focus, tools, and applications. As technology advances and global financial environments change, the Finance Industry continues to adapt and innovate, providing valuable insights and solutions to improve financial performance and stability.

Chapter 1

Chapter 2

Chapter 3

Finance Industry

What is Investment Management?

Hard Skill: Investment Advisory

Start

Chapter 2

Index

Investment Management

Great job on completing chapter one! In chapter two, we'll dive into a career in Investment Management, exploring the role in detail.

What we'll cover...

What is an Investment Manager?

What are the key responsibilities?

What are the skills and tools needed?

What career path and education are ideal?

Summary

Chapter 2

What is an investment manager?

What is an Investment Manager?

An Investment Manager is a professional responsible for managing assets and investment portfolios on behalf of clients, which can include individuals, companies, or institutions. This role involves researching, selecting, and monitoring investment opportunities to achieve financial goals and optimise returns. Here is a detailed overview of what an Investment Manager is and what they do: Investment Managers focus on developing and implementing investment strategies to grow and protect their clients' wealth. Their goal is to maximise returns while managing risk and ensuring alignment with the clients' financial objectives. In the world of finance, Investment Managers play a crucial role in helping clients navigate the complexities of the investment landscape. Effective investment management can lead to significant financial growth, enhanced portfolio performance, and better risk management.

Chapter 2

Key responsibilities

What are the key responsibilities of an Investment Manager?

Performance Monitoring

Portfolio Management

Research and Analysis

Strategy Development

Client Communication

Chapter 2

Key SKILLS & TOOLS

What are the skills and tools needed to be an Investment Manager?

KEY SKILLS

COMMON TOOLS

Analytical Skills

Financial Analysis Software

Risk Management

Portfolio Management Software

Communication

Market Data Platforms

Financial Knowledge

Risk Management Tools

Decision-Making

Reporting Tools

career path & education

Chapter 2

What career path and education are ideal for becoming an Investment Manager?

Educational Background:

Career Progression:

Entry-level Investment Managers can advance to roles such as Senior Investment Manager, Portfolio Manager, or Chief Investment Officer (CIO). Specialisations within the field include roles like Equity Analyst, Fixed Income Analyst, and Quantitative Analyst.

Investment Managers often have degrees in fields such as finance, economics, business administration, or accounting. Many also pursue advanced degrees like an MBA or certifications such as the Chartered Financial Analyst (CFA) designation.

Chapter 2

summary

So, in summary…

In summary, an Investment Manager plays a pivotal role in managing assets and investment portfolios to achieve financial goals. By focusing on research, analysis, and strategic decision-making, they provide valuable services that drive financial growth and risk management. The work of an Investment Manager spans from market research and security selection to portfolio management and client communication, requiring a combination of analytical, financial, and communication skills.

Chapter 1

Chapter 2

Chapter 3

Finance Industry

What is Investment Management?

Hard Skill: Investment Advisory

Start

Chapter 3

Index

Hard Skill: Investment Advisory

Investment Advisory is a crucial hard skill for Investment Managers, enabling them to provide expert guidance and recommendations on investment decisions to clients. This skill is essential for developing tailored investment strategies that align with clients' financial goals, risk tolerance, and market conditions.

What we'll cover...

Introduction to Investment Advisory

Assessing Client Profiles for Investment Planning

Crafting Personalised Investment Strategies

Monitoring and Adjusting Investment Portfolios

Evolving Strategies for Changing Markets

Chapter 3

Hard Skill: Investment advisory

Assessing Client Profiles for Investment Planning:The initial step in investment advisory involves comprehensive client assessment.Investment Managers employ a variety of methods to gather qualitative and quantitative data about their clients, including financial statements, risk tolerance questionnaires, and personal interviews.

Crafting Personalised Investment Strategies:With the client profile established, Investment Managers synthesise the information to create personalised investment plans.This process includes asset allocation, security selection, and diversification strategies. Investment Managers use tools like financial modelling, portfolio optimisation, and scenario analysis to design portfolios that meet clients' needs. For instance, they might allocate a higher proportion of assets to equities for a young client seeking growth, while favouring bonds for an older client prioritising income and capital preservation.

This research focuses on understanding financial objectives (retirement planning, wealth accumulation, income generation), risk appetite (conservative, moderate, aggressive), time horizons (short-term, medium-term, long-term), and personal circumstances (age, income, expenses).

Chapter 3

Hard Skill: INVESTMENT ADVISORY

Monitoring and Adjustment Investment Portfolios: These investment plans are then implemented and monitored to ensure alignment with clients' goals.Investment Managers regularly review portfolio performance, market conditions, and client circumstances to make necessary adjustments. They provide detailed reports and updates that highlight key metrics such as portfolio returns, risk measures, and market outlook. For example, an Investment Manager might rebalance a portfolio in response to market volatility or changes in a client's financial situation.

Evolving Strategies for Changing Markets: Regular validation and updates of investment advisory strategies are essential as market conditions and client goals evolve.Investment Managers should continuously monitor new investment opportunities, economic developments, and regulatory changes to refine their advisory approach, ensuring it remains accurate and relevant. This iterative process allows for ongoing improvements to investment strategies, maintaining alignment with the dynamic financial landscape.

Chapter 3

Hard Skill: INVESTMENT ADVISORY

In Summary...Investment Advisory is a fundamental hard skill for Investment Managers that involves meticulous client assessment, investment planning, and ongoing portfolio management. By developing detailed and personalised investment advice, Investment Managers can provide actionable recommendations that effectively address clients' financial goals and challenges, ultimately enhancing their financial well-being and investment success.

That's a wrap!

Well done! You have completed module 1.

Chapter 1

Chapter 2

Chapter 3

Finance Industry

What is Investment Management?

Hard Skill: Investment Advisory

Start

Start

Start

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Shift towards remote work and virtual collaboration in financial services. Utilisation of online platforms for communication and project management.

Portfolio Management

Asset Allocation: Distributing investments among various asset classes to balance risk and return.Security Selection: Choosing specific investments, such as stocks, bonds, or mutual funds, based on thorough research and analysis.

Financial Analysis Software: Bloomberg Terminal, Morningstar Direct.

Risk Management

• Focus: Identifying, assessing, and mitigating financial risks.
• Applications: Credit risk analysis, market risk management, operational risk assessment.
• Tools: Value-at-Risk (VaR) models, stress testing, risk assessment matrices.

Research and Analysis

Market Research: Analysing market trends, economic data, and financial news to identify investment opportunities.Security Analysis: Evaluating the performance, risk, and potential of individual securities or assets.

Analytical Skills: Ability to analyse financial data, market trends, and investment opportunities.

Adoption of digital technologies to enhance operational efficiency. Integration of cloud computing, AI, and IoT in financial services.

Communication: Strong communication skills for explaining investment strategies and performance to clients.

Expanding use of big data and analytics to drive decision-making. Leveraging AI and machine learning for predictive analytics and risk management.

Strategy Development

Investment Strategies: Developing long-term and short-term investment strategies tailored to client objectives.Economic Forecasting: Predicting economic trends and market movements to inform investment decisions.

Insurance

• Focus: Providing risk management through insurance products.
• Applications: Underwriting, claims management, policy administration.
• Tools: Actuarial software, policy management systems, claims processing systems.

Investment Banking

• Focus: Assisting clients in raising capital and providing advisory services.
• Applications: Underwriting, mergers and acquisitions advisory, trading securities.
• Tools: Financial modelling, valuation techniques, pitch books.

Portfolio Management Software: Aladdin by BlackRock, Charles River.

Increasing importance of cybersecurity measures to protect financial data. Implementation of advanced security protocols and threat detection systems.

Risk Management: Expertise in assessing and managing investment risks.

Reporting Tools: Excel, custom reporting dashboards.

Market Data Platforms: Reuters Eikon, FactSet.

Decision-Making: Proficiency in making informed investment decisions based on research and analysis.

Wealth Management

• Focus: Offering financial planning and investment advice to high-net-worth individuals.
• Applications: Estate planning, tax optimisation, retirement planning.
• Tools: Financial planning software, investment management platforms, tax software.

Enhanced focus on improving customer experience through personalised services. Utilisation of customer journey mapping and advanced CRM systems.

Performance Monitoring

Tracking Performance: Continuously monitoring the performance of investment portfolios and making adjustments as needed.Risk Management: Assessing and managing investment risks to minimise potential losses.

Expansion of financial markets and cross-border transactions. Focus on managing currency risks and regulatory differences.

Growing focus on environmental, social, and governance (ESG) criteria in investment decisions. Adoption of green finance and impact investing strategies.

Heightened regulatory scrutiny and compliance requirements. Implementation of new regulations such as GDPR and MiFID II.

Financial Knowledge: Deep understanding of financial markets, instruments, and economic principles.

Asset Management

• Focus: Managing investments on behalf of clients.
• Applications: Portfolio management, asset allocation, risk management.
• Tools: Portfolio analysis software, financial ratios, performance metrics.

Corporate Finance

• Focus: Managing a company’s financial activities.
• Applications: Capital budgeting, financial forecasting, mergers and acquisitions.
• Tools: Discounted cash flow analysis, financial modelling, capital asset pricing model (CAPM).

Risk Management Tools: Value-at-Risk (VaR) models, stress testing software.

Client Communication

Reporting: Providing regular updates and detailed reports on portfolio performance to clients.Advisory: Advising clients on investment decisions and strategies based on their financial goals and risk tolerance.

Financial Planning

• Focus: Helping individuals and businesses plan their financial futures.
• Applications: Budgeting, retirement planning, tax planning.
• Tools: Budgeting software, retirement calculators, financial planning tools.

Retail Banking

• Focus: Providing banking services to individuals and small businesses.
• Applications: Personal loans, mortgages, savings accounts.
• Tools: Customer relationship management (CRM) systems, loan origination software.

Increasing integration of technology in financial services. Emphasis on mobile banking, blockchain, and robo-advisors.