Completing this week’s In Focus series on Wealth DFM, looking at career development opportunities for young professionals in the investment world
Investment management remains one of the most intellectually rewarding and impactful corners of financial services, but with an ageing workforce and growing concerns over succession, firms are under increasing pressure to attract and develop the next generation of talent. In the final part of Wealth DFM’s In Focus series on career development, industry leaders share how they are widening access, nurturing ambition and building the future pipeline of investment professionals.
For many looking in from the outside, investment management can still carry an aura of prestige: a career built on analytical rigour, long-term thinking and the opportunity to shape financial futures. It is an industry that offers intellectual challenge, commercial reward and, increasingly, a wider range of pathways than the traditional stereotypes might suggest.
Yet beneath that positive image lies a pressing structural challenge. Like much of financial services, the investment sector is grappling with an ageing workforce, with many senior professionals approaching retirement and questions growing louder over who will step up to lead the industry in the decades ahead.
The issue is not simply one of replacement, but renewal. Firms must compete harder than ever for talented graduates and school-leavers, while also broadening the appeal of the profession to groups who may never have considered it an option. From improving access and visibility to creating more meaningful development opportunities, the focus is increasingly on building a stronger, more diverse talent pipeline.
In this final instalment of Wealth DFM’s In Focus series on career development, industry leaders from across the sector explain why investing in future talent is no longer optional – but essential to the long-term health and resilience of the industry.
Penny Cole, chief people officer at Quilter, told us how her organisation is committed to opening up our industry to talented young people and helping them see the breadth of careers available in investment and wealth management.
She said:” If we want to attract the next generation of professionals, we need to create meaningful opportunities for them to understand the sector, build confidence and see a place for themselves within it.
“Earlier this year, we hosted our first insight event focused on careers in investment and wealth management for women. It brought together colleagues from across Quilter with individuals exploring their future career options
to share practical, real-world insight into the profession and to demystify what a career in our industry can look like. Participants had the opportunity to work through investment scenarios, explore client interactions, hear directly from colleagues about their career journeys and take part in networking and Q&A sessions.
“The feedback was extremely positive. Attendees told us they left with a stronger understanding of the industry, greater confidence in considering a career in investment management and a clearer sense of the different routes available to them.
“Building a broader and more diverse talent pipeline requires us to be intentional about awareness, access and encouragement. This insight event was an important step in helping talented young people better understand the opportunities available, gain practical insight and develop the knowledge and confidence to take their first steps into the profession.”
Derek Stuart, a founding partner at Artemis and chair of The Artemis Charitable Foundation, says:
“Asset managers need to look further afield for talent and do more to nurture it. One way we’ve contributed is with the Artemis Profit Hunt, which is now in its eighth year. It introduces Year 12 students from London schools in lower-income catchments to the world of work and financial markets. The programme – run in partnership with Arrival – helps students develop essential skills, such as communication and teamwork, and practice these in an office environment. They work in teams to manage a portfolio of five stocks over the course of six months and are mentored by Artemis colleagues. They meet with them monthly in the office to discuss their portfolios and trading strategies. During the competition, they also meet and quiz a CEO from a leading company. We host a careers evening about other aspects of the fund industry too. The team with the best performing portfolio wins work experience at Artemis.
“The programme has also been rewarding for our colleagues, who love engaging with these bright, enthusiastic students. It has opened up career paths for some of the students – showing them the opportunities available in the financial sector – but also helped them with other more general skills required in any career. Alumni are now working across many of our major financial institutions, including at Artemis. More generally, the programme has helped alumni feel more confident in saving and investing – 56% are already investing in the stock market and 95% plan to; 84% are the first in their family to invest and 59% have helped a family member to invest. It’s life changing.”
Joe Bauernfreund, CEO and CIO of Asset Value Investors (AVI) comments: “As an employer, we have a responsibility to support career development and build a culture where, if the firm succeeds, younger employees share in that success. At AVI, we deliberately seek to hire junior analysts fresh from university. What we look for is simple: someone interested in the stock market and companies, analytical in their approach to situations, and able to construct an argument which can withstand scrutiny.
“Once someone joins the firm, we encourage development by giving them a degree of responsibility quickly, such as partnership on investment ideas in the portfolio. One of the best things that can happen to a young analyst is to go through a market correction. It teaches humility, but if you have an honest, robust framework for thinking about valuations, you can make good decisions to navigate it and come out a better investor.
“It is important to create a supportive environment where people feel remunerated and valued for their contribution. If we have done well, it has a little to do with me and a great deal to do with the team behind it. We hope to continue growing the team, giving younger team members more responsibilities, and supporting the development of the next generation in investment management.”
