Fidelity Specific Qs Flashcards
Why do you want to work for Fidelity International?
My key motivation for applying to work at Fidelity is the opportunity to work for a global investment manager who are committed to creating value.
I am drawn to the track record of investing for the long term, with the view to always act in the interest of the client. This is because I am most motivated when I can see the long term impacts of my research and work and I am a strong believer that acting with integrity is the best way to retain clients.
The history of rewarding employees for intelligent risk taking and the emphasis on a healthy work life balance is an attractive working environment. I believe I would thrive in a culture where employees are judged by the quality of work done and not just the quantity of hours.
The scheme of encouraging employees to give back with things like charity events is something I would be excited to get involved in.
Finally, the environmental awareness that Fidelity shows towards managing energy usage is a very positive initiative in a world where climate change is a huge problem to tackle.
What is Asset Management?
Asset management firms manage funds for both individuals and companies to help clients achieve their financial goals.
They research and purchase products in different asset classes such as stocks, bonds and derivatives on behalf of clients, with the goal of making a return on the initial investment.
Fund Managers invest multiple clients’ money into funds with the aim of growing the value of investments in the fund. This gives them access to higher value options with better capital appreciation prospects, as well as mitigating the associated risk.
These pooled funds can be channelled into property, shares, bonds or other assets depending on the financial objectives of their clients. For example, the stock market can deliver fast returns, whereas property is ideal for long-term asset management.
Make money by annually charging clients a fee based upon the value of the assets that they manage or administer for them.
What is the difference between Asset Management and Investment Banking?
Financial firms can be crudely split down the middle – those on the ‘buy’ side and those on the ‘sell’ side.
As asset management companies strive to grow a portfolio for their clients, their primary role is making smart purchasing decisions that will increase the overall value of their clients’ funds.
This differs greatly to investment banks, brokerages and insurance firms, which focus on giving access to funds being sold – such as stock purchases, insurance policies and mergers and acquisitions.
Due to the nature of these firms, they also tend to work with larger companies, whereas many asset management firms will work with high-wealth individuals.
What is Multi Asset?
Multi-asset class investments increase the diversification of an overall portfolio by distributing investments throughout several classes.
This reduces risk (volatility) compared to holding one class of assets, but might also hinder potential returns. For example, a multi-asset class investor might hold bonds, stocks, cash and real property, whereas a single-class investor might only hold stocks. One asset class might outperform during a particular period of time, but historically, no asset class will outperform during every period.
Unlike balanced funds, which typically focus on meeting or beating a benchmark, multi-asset class funds are composed with the aim of achieving a certain investment outcome, such as exceeding inflation.
Their broad options for investing, ranging across securities, sectors, real estate and other types of securities, give them enormous flexibility to meet their goals.
Many are actively managed, meaning a person or group of people make decisions based on the dynamics of the market in order to maximise returns and limit risk.
Why Finance/Asset Management?
I naturally enjoy working in a fast paced environment which is why a career in the sector of banking and finance appeals to me.
I also enjoy working with numbers and solving problems, so using a combination of problem solving and numerical skills to invest people’s money effectively is something I am eager to be involved in.
I am eager to get involved in such a broad industry which offers a great opportunity to build a broad range of skills and go on to specialise eventually. The opportunity to work on a variety of asset classes presents an excellent opportunity to do this.
This combined with the volume of qualifications that can be obtained in the industry such as the CFA qualification make it an exciting career choice for me.
Finally the level of job satisfaction I believe I would obtain working in the industry is very high. I am particularly motivate when I can see the impact of my work in real terms. Therefore seeing the results of advice or investment is something I would find greatly rewarding.
Why Multi Asset?
I attracted to the Multi Asset division because I am always looking to gain new skills, so working across a range of asset classes is an excellent opportunity to do this.
Why do you want the graduate role at Fidelity International?
The broad remit of the multi asset graduate programme is a particular draw for me to the role. I have always been someone who is hungry to improve and learn new skills, so the chance to work on a range of asset classes is a great opportunity to do this.
Furthermore, the rotational nature of the programme reinforces that this is an excellent chance to learn different research capabilities.
I am always eager to take on responsibility, so the potential to work with senior colleagues and have an active role in research meetings excites me.
I would love the chance to utilise my excellent communication skills and build on them to convey my opinions on markets and industry insights.
I am a highly motivated individual so the opportunity to complete qualifications, such as the chartered financial analyst, is something I would be eager to take advantage of.
