Sometimes described as the rocket scientists of the funds industry, quants or quantitative analysts, are specialists who apply advanced mathematical and statistical methods to solve financial and risk management problems. They develop and run complex models used by firms to make decisions about issues such as investments, pricing, risk and so on.
Quants who work directly with traders, providing them with pricing, trading and risk analysis tools, are sometimes referred to as front-office quants. These are the more highly paid but more stressful roles. Quants who work in the back office tend to be more involved in trading strategy research, risk management and model validation.All financial institutions are required by law to constantly manage market, credit and other risks.
While an accountancy qualification is generally a necessity for these roles, employers also want to hire people with an interest in and flair for the funds industry with a desire to progress and carve out long-term careers in the area. Fund lawyers draft the various organisational documents necessary to establish an investment fund. These include private placement memorandums which set out the terms of the investment, minimum investor requirements, risk factors, the identity of the investment manager and the strategy to be employed by the fund. Setting up a fund requires significant tax and finance industry knowledge and expertise, and funds lawyers often find themselves work in teams alongside tax and finance professionals.