Investment Research > Analyst

Business Description

What is Investment Research?

Investment Research is about understanding companies and their business environment. Through this process we help our internal and external clients allocate their capital to achieve the best risk-adjusted investment returns possible. With over 350 Investment Research Analysts covering over 3,100 companies worldwide, Citi Investment Research is an industry leader in equity research globally. We provide our clients with comprehensive research analysis of companies, industries and the world's economies, enabling them to make informed and profitable investment decisions. We also provide clients with comprehensive quantitative analysis on both an industry and company-specific level. 

What service do we provide to our clients?

Our clients are formed of external and internal groups. External clients include institutional investors at pension funds, unit trusts and hedge funds. Our Equity Sales and Trading force, Private Bank, and Private Client Group form our internal constituencies.
Our client base is very diverse and their requirements vary wildly. Our Investment Research Analysts need to be highly flexible. On a given day, our Analysts may be required to give clients an immediate assessment of breaking news that is moving a company's share price, as well as provide a detailed analysis of long-term industry trends within the sector. Our Analysts have to remain in constant contact with clients in order to provide best-in-class service.

What product/groups do we cover?

We are one of the few companies in our industry that provide full industry coverage on both a global and a regional level, based around the major stock market sectors including Financials, Consumer, Pharmaceuticals, Telecoms, Industrials and so on. In addition, we provide macro analysis of markets, economies and quantitative analysis of securities. We also have teams dedicated to providing specialized research on Accounting & Valuation topics and on Socially Responsible Investing.

Roles of an Analyst

In order to give you a better understanding of Citi Investment Research (CIR), we asked our current graduates to describe (in their own words) the areas in which they work.

Investment Research …In simplest terms
CIR (formerly "Equity Research") provides equity market investment advice on specific stocks, sectors and the market as a whole. Fundamental stock analysis is at the heart of the business, building recommendations on companies which must then be transferred to the client. Idea generation is crucial; research is a process of deciding upon a stance with reference to a stock or sector, putting the case on paper, and broking the story to the buy-side.

Investment research in simplest terms is all about stock broking; we advise clients on which stocks to buy and sell. After performing a detailed financial analysis on a company and looking at the drivers behind the stock price, we take a view on whether we think the stock is currently under or over valued, and this decides whether we rate the stock as a "buy," "hold," or "sell." Through our understanding of the companies and industries that we research, we aim to be the primary source of information on the 2600 stocks under coverage globally for our internal (namely our equity sales and trading force) and external (e.g. asset managers and hedge funds) clients. 

Why work in CIR?

 

Citi boasts one of the top two research houses in the City, and the breadth of its stock coverage gives superior leverage to the vast majority of competitors. Working in research gives board-level access as well as daily client contact, with external fund managers as well as the internal Sales force. The skills acquired are varied and valued, the transferable ability to value a company, write reports and sell your story, alongside in-depth sector knowledge. 

Roles an Associate may undertake in CIR:

In CIR an Analyst is referred to as an Associate, a Research Analyst is someone with a deep level of knowledge and expertise in their research area, a title you will be inspiring to achieve!

A. Company and Client interaction - two contrasting aspects to the role. In order to arrive at an investment opinion, teams must be fully acquainted with the companies they cover, be it a hotel operator, a bank or a house builder. As such, associates are involved with the research of companies’ day-to-day operations, historical performance and future prospects - data collation and site/management visits are a vital part of the process. Associates work alongside the lead analysts in this assessment, and the subsequent client contact, where buy-side investors are advised and informed of the conclusions drawn.

B. Report creation - the tangible product of what CIR does. Associates are involved in the writing of a variety of research that is sent to clients on a regular basis. From short ‘flash’ notes to detailed company and sector reports, each team produces written investment advice to the client base. Associates support the lead stock analysts on all types of research, with the aim of gaining their own stock coverage and "making the calls" themselves once they have learned the fundamentals of stock picking and valuation. The skill set required is again invaluable; the ability to formulate and argue a clear, concise and logical case complements the numerical side of the job.

C. Stock Valuation and Financial Modelling - Our views on a company's share price are derived from thorough analysis of the company and its industry, and from this we form an opinion on whether we think a stock is under-or-overvalued at that point in time. In order to come to this decision, the analyst must understand all aspects of the company and the drivers behind the current and future share price. All this knowledge is formalized into a financial model which forecasts key financial items allowing us to use valuation techniques such as discounted cash flow analysis. A Research Associate will be involved in this process by performing valuation techniques such as the DCF, keeping forecasts up to date, enhancing the models or creating new ones. Research Associates start by helping Analysts with covering stocks and will not have any stocks under coverage themselves, however, over time Associates will eventually build up knowledge and experience to cover stocks of their own.

D. Idea Generation - The best way we can add value to clients is by providing them with unique and actionable ideas. It involves discovering aspects of a company that has not yet been picked up or focused on by competitors, and delivering that information so that a client can act on it, whether that means buying or selling the stock. Associates will at first be providing assistance to the lead analyst on a stock, but over time they will be involved in the investment debate to a greater extent and be able to take views on where they see share prices moving, voicing their opinion in the research produced, and talking to clients internally and externally to promote their ideas.

Our Programmes

Citi Investment Research in EMEA has two programmes you can apply for:

• Full Time Programme

• Summer Internship

Full time Programme:

The Analyst programme begins in late August in London. The Programme commences with an intensive ten week training course as detailed below. Our programme is participative, ensuring that you play a full part in the learning experience, thus making the training business relevant, stimulating and effective.

Social and networking activities will be included throughout the programme.

Once you have completed the training, you will be assigned to one desk. This decision is reached through your preferences and the requirements of our business. Our goal is to ensure that every Analyst is placed in a position that best pairs their skill sets and personal interests with the needs of the Firm. A buddy will also be allocated to you to give you an informal support network that will aid your integration into your new department.  

Pre-Programme

Before joining the programme, you will be asked to complete a knowledge assessment to ensure that you build a foundation in or brush up on your knowledge of financial mathematics, accounting and economics concepts.

To do this, we offer you:

• Access to online training

• Optional places on training courses at our training centre in London

• Further reading for those of you on the move and unable to easily access the web.

Induction

Your programme starts with an Induction to Citi Markets & Banking designed to introduce you to the history of Citi, our Shared Responsibilities and the current and future strategic direction of the company. You will also participate in a Teamwork Offsite Event, with Analysts across all business streams. This aims to instil a team spirit and introduce you to the Citi culture of innovation and integrity. 

Technical Skills

You will then be engaged in a four-week intensive classroom based training delivered by external corporate training consultants. Topics will include: Economics, Financial Maths, Risk Management, Technical Analysis, Accounting and Modelling for Financial Instruments, Excel and VBA, Capital Structure and Investment Management, Understanding Equity Markets, Contemporary Equity Analysis, Equity Finance, Convertibles and Equity Derivatives.
Part of your assesment will include exams in these areas which you will be required to pass.

FSA Module

This three-week module will prepare you for the SII exams required for FSA approval. It consists of tutorials, mock exams, and self-study in order to prepare you for the SII exams required for FSA approval.  

Post-Programme

You will have ongoing access to the analyst portal for 12 months. This includes recordings, precourse e-learning and additional selected chapters. You will also be able to participate in all appropriate Learning & Development opportunities via our internal Business University, which spans across markets, products, business skills and networking.

Summer internship:

The London office Summer Internship Programme runs for ten weeks from the end of June.
You will start the Internship with an induction to Citi along with 200+ Summer Analysts joining Citi Markets & Banking divisions in London.

The initial three-day training includes:  

• a review of important processes that you should know as a new employee to Citi

• an Introduction to Global Financial Markets and Citi. This course provides the opportunity for you to identify and explain the main business areas of an investment bank, Citi’s products and services as well as engage in interactive trading simulations and portfolio management 

• specific business presentations

• a teamwork event

After the initial training you will then be assigned to a desk within Investement Research where you will be allocated a project/projects to work on.

Throughout the summer we will continue to provide you with training and networking opportunities to help you gain an in depth knowledge of the whole of Citi. These events include a weekly Business Presentation series, networking opportunities with senior managers and various internwide social events. A buddy will be also allocated to you to give you an informal advice and support network over the summer with us.

During the programme, we will be evaluating you for a full-time position for the following year.

We do this through:

• a mid-term evaluation

• a project presentation to senior management

• a final term review 

This is a two way process, providing you with the opportunity to evaluate whether this is where you want to take your career as well.

Who we are looking for

Employing the most talented candidates is fundamental to achieving our business goals. We aim to provide candidates with the necessary skills to successfully develop and maintain profitable client relationships, have superior financial knowledge and strive to strengthen our market share.

We look for highly motivated individuals with strong academic performance, excellent communication skills and a solid quantitative ability. We welcome applications from all backgrounds – we will provide you with the training to succeed in our business. We look for the drive and enthusiasm of quick learners with a range of interpersonal skills. With an ever-increasing international environment, language skills are also an advantage.

Some of the key skills we look for are:

• creative problem solvers 

• a detail-orientated approach

• solid quantitative ability

• ability to work under pressure on multiple projects

• an ability to work independently and in a team

• a desire to work in a demanding and ever-changing environment

• high levels of self-motivation and initiative 

• superior relationship-building skills

• a commitment to integrity and ethical decision making 

Where in EMEA:

 
Most positions are in the London Office; occasionally we may hire to Frankfurt, Paris & Milan. Please keep an eye on the website for updates.

Recruitment Process

We open for applications on the 3rd September 2007

The application deadlines are:

Analyst Programme: 4th November 2007

Summer Internship Programme: 20th January 2008

Please note, we recommend early applications.

Our interview process for the full time programme will commence in October/November 2007, for summer internships it will commence in January 2008.

Full Time Analyst

Below is an outline of the recruitment process from application received to offer:

Stage 1: Application is reviewed by Graduate Recruitment and the Business

Stage 2: Invited to an online Numerical Reasoning Test

Stage 3: Further screening by business

Stage 4: First-round interviews:
               Two 1:1 competency-based interviews,
               Numerical Reasoning Test

Stage 5: Assessment Centre:
               Three 1:1 competency-based interviews with Managing Directors & Directors,
                Written Case Study Analysis/Presentation and Group Discussion

Stage 6: Offer extended by Graduate Recruitment

Summer Internship

Below is an outline of the recruitment process from application received to offer:

Stage 1: Application is reviewed by Graduate Recruitment and the Business

Stage 2: Invited to an online Numerical Reasoning Test

Stage 3: Further screening by business

Stage 4: Assessment Centre:
               Three 1:1 competency based interviews with Managing Directors & Directors,
               Numerical Reasoning Test,
               Written Case Study Analysis/Presentation & Group Discussion

Stage 5: Offer extended by Graduate Recruitment

Where

Our EMEA (Europe Middle East and Africa) headquarters are based in London. The majority of our positions are based in London; however, occasionally we recruit into other locations across our region. Please keep an eye on the website for updates.

Stats on Citi in London:

Location? Canary Wharf, London.
Employees? 10,000 are based in London.
What divisions? Invesment Banking, Corporate Banking, Global Capital Makets, Global Transaction Services, Technology, Operations, HR.
How many Analysts? 200+ across all business areas.

 

Our People

Amy Crofton MEng Materials, Economics and Management, St Edmund Hall, Oxford. Graduate

What advice would you offer prospective candidates on transitioning from school to the workplace?

Don't rely on other people to teach you everything you need to know, being proactive actually makes life easier for yourself in the long run. My team are great, and are happy to answer all the questions I throw at them, but until you are a bit more experienced in the job, I would advocate writing everything down. The learning curve is steep, so I think to keep up it is important to get organised if you are to progress quickly. People don't mind answering a question once, but when you ask for the third time they might not be so keen!

If asked about your career at a dinner party, how would you describe it?

 

In very basic terms, my job is to tell people what shares to buy and sell. I cover the food retail sector so I focus on the Pan-European supermarket stocks, and it is our job to know everything there is to know about them. We try to recognise long-term industry trends, as well as shorter-term trading opportunities, and communicate our ideas to our clients. It’s a job that I think requires just the right combination of analytical work (so you use your academic brain) and client contact (so you need the ability to communicate and build relationships).

How would you describe your team and the people you work with?

I can honestly say the reason I chose Citi was primarily because of the people I met during my internship. My direct team are fantastic to work with, and make every effort to help me learn and get better at my job. The internship and graduate schemes are both awesome fun and give you the opportunity to make friends with people from all over the bank.

What other groups do you liaise with regularly within the Firm?

Investment research works most closely with the trading floor, as we liaise constantly with our specialist sales teams and other general sales people (who help market our ideas and published work). Within our division, although most sector teams are quite specialized, we also regularly consult other related sectors about issues that might affect our stocks, or ideas that may have read-through to other sectors. 

What outside influences have the most bearing on what you do day to day, and how do they affect you? (e.g., economic news, world markets, company data, etc.)?

On a day-to-day basis, the most important things to react to are news headlines related to our stocks, and reported sales and earnings numbers. For instance my sector (Pan Euro Food Retail) is currently subject to lots of speculation of corporate activity, and so headlines regarding the actions/intentions of major shareholders tend to move the share price. It is also important to understand the read-across from one company's news to other stocks. Longer term, trends in more macro measures, such as food inflation, consumer confidence and oil prices etc., also have a bearing on our sector/company views.

What non-work related activities do you get involved in through Citi (community, mentoring, charity)?

One of the great things about joining such a huge firm is the range of "extra curricular" activities it can provide! During my internship I started playing polo with Citi Polo club, and now I play for Citi Netball one lunchtime a week, and Citi mixed hockey after work. Our hockey team recently went to Sheffield to compete in the Corporate Games and we are now unofficially the 13^th best corporate hockey team in the UK!

How did your summer internship help you make the decision to pursue a career at Citi?

Before my internship, I had no idea what I wanted to go into long term, and knew very little about the opportunities available within Citi. The internship allowed me to get a proper taste of working life, and a better idea of where my strengths (and weaknesses) lie. I also met a lot of people on my internship who had interned/worked at other banks and they convinced me that Citi was unlike any other bank and was genuinely a friendlier and nicer place to work.

Sergio Fernandez Master in European Business, ESCP-EAP; BA (Hons) Business Studies and Finance, University of Westminster Associate

What advice would you offer prospective candidates on transitioning from school to the workplace?

My advice would be to forget about student life. It might sound harsh, but the truth is that the workplace is a completely different environment to University. You need to be prepared to learn fast, work hard (sometimes under strong pressure) and give the most of you. Student life is over, but you should be ready for a far more challenging and fulfilling life!!!

What do you consider Citi's competitive edge?

I would basically consider two aspects: Citi’s global reach and its Employees. Citi has a strong presence in almost every region, delivering a wide range of very competitive products to some of the most exigent clients in the market. And these products and services would never exist if it weren’t for Citi people. Citi does not only employ people with different backgrounds, taking diversity and equal opportunities very seriously (no matter what race, religion or sexual orientation you are), but also hires the best professionals in the market, taking special emphasis on training and personal development.

How would you describe your team and the people you work with?

My workplace is very peculiar. I am based in the Madrid office and although I work for the Spanish Small/Mid Caps team, the Madrid research office is itself a broader team formed of different Spanish analysts of various sectors (Utilities, Construction, Banks…). We are all very different, with diverse backgrounds, nationalities and personalities, but we all benefit from the experience and knowledge of each other. I consider myself very lucky for working with a driven and pleasant team formed by some of the best professionals in this sector.

What other groups do you liaise with regularly within the Firm?

Within Citi we liaise mainly with Sales and Trading, but also with corporate marketing. Externally we are in constant contact with institutional investors and the senior management of the different companies we cover.

How do you apply your degree to what you're doing now?

I obtained a Master's in Business at ESCP-EAP where we covered basic concepts which are very handy on my day-to-day job. However, most of the skills necessary for my role have been learned on the job. I am constantly learning new things on a daily basis especially from the senior analysts in my team.

What skills have you found to be the most useful in your position?

Extreme attention to detail, the ability to multi-task and analytical skills are always very important…but not useful if you are not motivated and determined to give your best.