Paragraph by paragraph
I am applying for the Equity Analyst role on Schroders' UK mid cap team, and I would like to make the move from sell side research to the buy side. I have worked at Barclays Investment Bank since 2021, covering 15 FTSE 250 companies, after two years in valuations at KPMG.
The move, said plainly
He names the role and says outright that he is moving from the sell side to the buy side. The reader doesn't have to work it out from his CV.
My research has supported buy and sell recommendations worth about £300m. I built the DCF and comparable company models our team now uses, which cut the time to produce a valuation by around 30%, and each quarter I present earnings previews to more than 20 institutional clients.
What he covers and what he built
Fifteen FTSE 250 companies tells a mid cap team he knows their part of the market. The model and the client previews show research skills and the ability to explain a view.
I have also worked on due diligence for three M&A transactions with a combined enterprise value of £850m, so I am used to the confidentiality rules that come with live deals.
Deal work, kept general
Due diligence adds corporate finance experience. The value is the combined enterprise value, and no deal or company is identified.
At KPMG I prepared financial models and valuation reports for audit and advisory work, and analysed the accounts of more than 30 clients, finding £15m of possible cost savings.
Why the KPMG years help
KPMG work on accounts is useful to an equity analyst, because reading a set of accounts closely is the basis of good research.
I have passed Levels I and II of the CFA Program and I am a Level III candidate. I studied economics at the LSE. For the interview I could prepare a pitch on a UK mid cap company of your choice.
CFA progress and an offer
The CFA sentence follows the CFA Institute's rules for candidates. CV summaries often say "CFA qualified" when they shouldn't, so check yours uses the same wording as the letter. The pitch offer is specific and practical.
What you may say about the CFA Program
The CFA Institute's Standard VII(B) controls how members and candidates refer to the CFA designation. Investment firms know the rules, and getting them wrong suggests carelessness about compliance.
| Don't write | Write |
|---|---|
| CFA qualified, or CFA Level II | Passed Level II of the CFA Program |
| CFA (Level III) | Level III candidate in the CFA Program |
| Expected to complete the CFA in 2027 | Nothing about a completion date. Candidates may not state one. |
| CFA after your name | Only once you hold the charter. |
In the UK, the Investment Management Certificate, offered by CFA Society of the UK, is another qualification many asset managers recognise for junior investment roles.
For a headhunter or an online form
Many analyst roles at asset managers go through headhunters, who send a short note to the client. This version leads with the coverage and the CFA status, worded correctly.
Finance numbers that hold up
- Say what the number is: recommendations worth £300m, a combined enterprise value of £850m and clients with £4bn of assets are three different things. Don't let one stand in for another.
- Give your part: "my research supported recommendations" is accurate for an analyst; "I made £300m of decisions" isn't.
- Process figures count: a faster model or a shorter turnaround is a result that is clearly yours.
- Performance: if you quote how your calls did, give the period and the benchmark, and only use published research.
Other finance roles and how to begin
Graduate analyst
Give your degree, an internship and one piece of analysis you did yourself.
I graduate in economics this summer, and during my internship I built the comparables model for a retail sector note my team published.
FP&A or corporate finance analyst
Show budgets, forecasts and the decisions your analysis supported.
I run the monthly forecast for a £400m revenue business, and this year my analysis supported the decision to close two loss making sites.
Credit analyst
Give the portfolio, the type of borrowers and how you assess risk.
I cover a portfolio of 40 mid market corporate borrowers, writing the annual credit reviews and watching covenants each quarter.
Moving from audit to investment
Show how your accounting work helps you value companies.
After three years auditing listed companies, I want to use what I know about reading accounts to value them.
Senior analyst or portfolio manager
Talk about decisions you made or influenced and how they performed against a benchmark.
I manage a £600m UK equity income fund with one other portfolio manager, and it has beaten its benchmark in four of the last five years.
From the sell side to the buy side
Asset managers hire analysts to help make investment decisions, so your letter should show you think like an owner of the shares.
- Coverage: name the sector or index you know, such as FTSE 250 mid caps, because buy side teams are built around them.
- Conviction: be ready to talk about a call you got right and one you got wrong, and what you learned from each.
- The pitch: many buy side interviews include a stock pitch, so offering one shows you know the process.
- Compliance: never use anything in an application that isn't public, including from research distributed only to clients.
Five mistakes in financial analyst letters
"CFA qualified" before the charter
It breaks the CFA Institute’s rules on referring to the designation, and readers who hold it will notice.
Write the levels you have passed and that you are a candidate.
Mixing up big numbers
Assets under management, deal value and recommendation value are different measures.
Say what each figure is.
Naming deals or clients
It raises questions about how you handle confidential and inside information.
Give the number and size of deals only.
Claiming the decision
Portfolio managers and clients make the decisions, so claiming them overstates your role.
Say your research supported the recommendation.
No view of the market
A buy side team wants to know you can form an opinion.
Offer a pitch or mention the part of the market you know best.
Length, tone and the compliance check
- Length: one page. Oliver's letter is about 205 words.
- Tone: precise and confident, with every number defined.
- Compliance: read it once as your compliance team would. Nothing should identify a client, a deal or unpublished research.
- Qualifications: the CFA line worded as the rules allow, and your degree with the university.
The main points from this page
- 1Describe CFA progress as levels passed and candidacy, with no completion date.
- 2Say what every big number measures.
- 3Show your part: research supports decisions.
- 4Keep deals, clients and unpublished research out.
- 5For the buy side, show you can form and defend a view.
Frequently asked questions
Can I say I am CFA qualified if I have passed Level II?
No. Under CFA Institute Standard VII(B) you can say you passed Level II and that you are a Level III candidate, but you can’t imply a partial designation.
Can I say when I expect to finish the CFA?
No. Candidates may not state an expected completion date.
What should a financial analyst cover letter include?
The role and firm, your coverage or area, one or two results with what each number measures, the models and work you do, your qualifications worded correctly and why you want the role.
How do I move from the sell side to the buy side?
Show the sector you know, that you can form a view, and offer a stock pitch for the interview.
How long should a financial analyst cover letter be?
One page, about 250 words, with every figure defined.