Research Analyst

WHAT IT IS

Key Role Dimensions

Monitoring market trends and political, economic and regulatory developments: Process large amounts of quantitative and qualitative information to identify possible external influences on investment return.

Presenting findings and recommendations to key decision makers: Inform the work of Portfolio Managers, Investment Bankers, stock and bond traders/salespeople, etc.

May work as part of a larger research team: May be assigned specific research tasks and required to assimilate findings with those of colleagues.

Focus Areas

Research Analysts usually focus on one primary area such as an industry, geographical area or type of financial product. Consequently, the broad title ‘Research Analyst’ may refer to a variety of more specific roles, such as Financial Analyst, Investment Analyst, Securities Analyst or Equity Analyst. 

Research Analysts tend to align to one of two sides of a financial transaction:

• ‘Buy-side’ Analysts: Work for organizations that have money to invest (e.g. pension funds, mutual funds, insurance companies) and conduct research to recommend new opportunities for investment. 
  
  
• ‘Sell-side’ Analysts: Work to help organizations such as banks and wealth management firms sell financial products or services (e.g. stocks, bonds) and provide rationale for investment opportunities (i.e. buy/sell recommendations).

WHAT IT TAKES TO SUCCEED

Key Job Accountabilities

Research Analysts generally:

Conduct research and analysis:

• Monitor financial news using specialist media sources; analyze/understand and summarize data on companies, industry sectors, etc.; and conduct research with subject matter experts as required.
• Work with team members to synthesize data on market changes, new investment products and other developments that may affect markets and investment opportunities.
• Use financial modelling and financial analysis to support research reports, including forecasting, cost-benefit and statistical analysis.
• Maintain databases/spreadsheets of industry and company-specific data.

Create reports and present findings:

• Compile research findings to write summary reports, create visual representations of data and make presentations and recommendations to management and/or clients.

Knowledge, Skills & Experience

Must-haves:

• Excellent financial analysis skills
• Excellent Research/Analysis & Statistical Modelling Skills: Identify data sources and review, compile, analyze and synthesize market, financial, academic and other data
• Knowledge of investment products (e.g. mutual funds, stocks, securities) and current affairs (e.g. political events, recent mergers, market and sector trends)
• Knowledge of regulatory and legislative policy and procedures for the financial sector
• Knowledge of financial services business functions and operations
• Team collaboration and information-sharing skills
• Demonstrated Out-of-the-Box Thinking: Creative and innovative decision making

Nice-to-haves:

• Deep segment experience (e.g. experience in oil and gas or degree in related field)

Education & Credentials

Entry-level positions typically require:

• Undergraduate university degree

In the fields of:

• Mathematics
• Statistics
• Economics
• Accounting
• Business
• Computer Science

More senior positions require:

• Graduate degree

In the fields of:

• Business Administration (MBA)
• Economics

 Employers in different segments may require candidates to possess one or more of these designations:

• Certified International Investment Analyst (CIIA®) 
• Chartered Financial Analyst (CFA®)
• Chartered Investment Manager (CIM®) 
• Chartered Professional Accountant (CPA) 

Additional training may include courses such as:

• Investment Management Techniques (IMT)
• Portfolio Management Techniques (PMT)
• Technical Analysis Course (TAC)
• Financial Risk Management Course
• Canadian Securities Course (CSC®)

Professional associations may include:

• CFA Institute
• Association of Certified International Investment Analysts