Welcome back to another issue of ‘Career Guides Weekly’ by Career Guides.

Today we’re talking about the roles and responsibilities of analysts, associates, vice presidents & executive directors, and managing directors at investment banks.

Keep in mind, for each division of an investment bank (investment banking, asset management, sales and trading, operations, technology, finance, etc.) the actual day-to-day work will differ across the ranks.

However, broadly speaking, the expectations and responsibilities will be similar. The more senior you become, the more weight and impact your decisions will have on the team/business.

As a use case, we’ll be looking at these roles through the lens of the asset management division.

With that, let’s dive in!

🧠 From Analyst to Managing Director - Roles & Responsibilities Explained

Analysts

Years of Experience: 0-3 years (based on performance).

Analysts are entry-level positions typically working under the guidance of more senior team members.

Responsibilities include conducting research, compiling and analysing data, keeping up-to-date on market trends, preparing reports, creating pitch books and slides for internal and external meetings, relationship management and more.

Some firms and divisions will allow analysts to be promoted to associate level after 2 years, others require 3 years of experience minimum.

Associates

Years of Experience: 3-5 years (based on performance).

An associate is a mid-level position that involves working closely with senior team members to either execute investment strategies, monitor portfolio performance, or manage client relationships.

Associates may also conduct research and analysis to identify investment opportunities and prepare reports for clients. They typically have strong communication skills and a deep understanding of financial markets and investment strategies.

Associates still do some of the grunt-work, but they can also delegate a lot of it to their juniors. At this level the focus is on becoming a specialist in your role to ensure promotion to vice president / director level after 2 or so years.

Vice Presidents / Directors

Years of Experience: 5-9 years (based on performance).

A vice president or executive director is a senior-level position that involves managing a team of associates and analysts, overseeing investment strategies and portfolios, and/or maintaining and growing existing and new client relationships.

They work with senior leadership to develop and implement business strategies and ensure the firm's goals are met. They may also be responsible for managing risk and compliance with regulatory requirements. As such, staying up to date with regulatory changes impacting the industry is imperative in this role.

Most investment banks have more vice presidents / directors than analysts, associates and managing directors. The reason for this is that if you perform well on the way up to vice president or executive director you’ll typically get promoted. However, the outperformance level required to reach the next level (managing director) is hard to meet. As such, only the ‘cream of the crop’, a very limited number of individuals, can make it to the top rung of the ladder in banking and finance.

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Introduction To Asset Management

Managing Directors

Years of Experience: 9+ years (based on performance).

A managing director is the highest leadership position at most firms. Some firms do have ‘partners’ who are above managing directors but I’ll have to do a separate post on partners in the future.

Managing directors oversee the overall direction and strategy of the business or team, manage a team, and build relationships with key clients and investors.

They work with senior leadership (Partners, Global Heads, COOs, CFOs, CEOs, etc.) to set business goals and develop new business initiatives.

They have extensive experience in the division they work in, strong leadership and communication skills, and a deep understanding of financial markets and investment strategies/client relationship building.

Managing directors are expensive employees for investment banks with pay packages ranging from hundreds of thousands to multi-millions. But it’s worth remembering, they’re often called ‘rainmakers’ for good reason - they’re responsible for bringing in millions, if not, tens of millions in revenue to the business/division.

Important note: Once again, it's important to mention that specific responsibilities can vary depending on each individual organisation, and the particular role and division in question. To add, some firms might have different job titles and responsibilities than those listed above.

I hope you found this post informative and educational (you can let me know using the green box below) and that you’ve learnt something new about the titles and roles so often used across the world of banking and finance.

Thanks for reading and I’ll see you in the next one.

Afzal

PS. If you aren’t already, you can follow me on LinkedIn for daily posts on career tips and insights.

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