Careers in Finance v2

8/6/2019 Careers in Finance v2

1/33

Confidential


2/33

Confidential

CAREERS IN FINANCE


3/33

Confidential

Want to be where the money is? Finance puts you

right in the thick of it! Youll find a variety of careers

that have to do with the management, analysis, and

protection of finances for both individuals

businesses

OverviewofFinance

3

CAREERS IN FINANCE

Accountant

Financial

Analysts

Financial

examiners

Personal

Consultants

Financial

Managers Sales Agents

Credit Analysts

Treasurers

Andmanymore


4/33


5/33

Confidential

Portfolio & Asset Management

The buy-side

Traditional Investment Managers

Mutual Funds

Alternative Investment Managers

Hedge Funds

Private Equity

Venture Capital

Portfolio Management

5

CAREERS IN FINANCE

Portfolio

managers

typicallyhandle

othersmoney

andearna

spread


6/33

Confidential

Research & Analysis

Sell-side & Buy-side Analysis

Research equity or fixed-income markets

Analyze company and industry fundamentals

Predict earnings and cash flowsDetermine appropriate valuations

The Start of a Career in Finance

Sell-side

Associate Junior/Association-Analyst Analyst

Buy-side

Assistant Analyst Portfolio Analyst Portfolio

Manager

Research Analysis

6

CAREERS IN FINANCE

Equityanalysts

typicallyhavea

giftfor

mathematical

analysisand

number

crunching,

proficiencywith

computers,above-average

writingskills,a

stronginterestin

economictrends,

andhigh

standardsof

personalintegrity


7/33


8/33

Confidential

Providing liquidity to firms clients

Portfolio management (hedging)

Knowledge of current economic environment andmarket conditions

Knowledge of flows being executed in the market

Maintaining views on potential movement ofunderlying instruments

Pricing and execution

Trading

8

CAREERS IN FINANCE


9/33

Confidential

Work for a company to help it find money to run the

business

Grow the business

Make acquisitions

Plan for firms financial future

Manage any cash on hand

Corporate Finance

9

CAREERS IN FINANCE

Financial Analyst

Credit Manager

Cash Manager

Treasurer

BenefitsOfficer

Controller

Investor

Relations

Officers


10/33

Confidential

Provides banking services to individuals, small

businesses and large organizations

More people are employed in the commercial

banking sector than any other part of the financialservices industry

Opportunities to learn about business, interact with

people, and build up a clientele

Starting at the branch level, you might start out as a

teller to a wide variety of other services such as

leasing, credit card banking, international finance

and trade credit

CommercialBanking

10

CAREERS IN FINANCE

Credit Analyst

LoanOfficer

Branch Manager

TrustOfficer

MortgageBanker


11/33

Confidential11

INVESTMENTBANKING


12/33

Confidential

Investment banking is an intense, life-absorbing

career path thats not for everyone

Potential rewards attract the brightest and most

competitive individuals from the strongestbackgrounds, so getting in is difficult

Its definitely worth doing if you get the chance

Decide if its for you: Work/life balance

Family vs. career

Geography

InvestmentBanking

12

CAREERS IN FINANCE

Theinvestment

bankingbusiness

isnotoriously

competitive

Investment

bankingisseeing

massive

consolidation

Investmentbankingisoneof

themostglobal

businesseson

earth


13/33

Confidential

InvestmentBanking VariousDivisions

13

CAREERS IN FINANCE

Typical GlobalInvestment Bank

Investment

Banking

Function

Investment

Management

Function

Research

Function

Sales &

Trading

Function

Prime

Brokerage

FunctionProducts

- M&A

- Cap. Markets

- StructuredProducts

Industries

- Energy

- Financial

Institutions

- Telecom/ Media

- Technology

- Retail/ Consumer

- Industrials

- Power& Utilities

Products

-Investment

Management

Products

-Risk Management

Products

-Portfolio Allocation

Strategies

-Alternative

Investment Strategies

- Provide Equityand

Credit Researchto

Institutional Clients

- Coverabout70-

80%oflisted

companiesinthe

country

- Other Services:

Economists,

Productexperts

Bundledservices

offeredtoHedge

Fundsandother

Institutionalclients

-Global Custodian

-Securities Lending

-Financingand

Margin-Portfolioreporting

-Cash Management

- Marketmaking

- Institutional

equitiessegments

- Fixed Income

Products

- CurrencyProducts

- DerivativeProducts

- Commodities


14/33

Confidential

InvestmentBanking ServicesOffered

14

CAREERS IN FINANCE

Services Offered Work Profile

Mergers & Acquisitions

Equity Raising

Debt Raising

Leverage Buyouts

JV / Alliances

Restructuring

Valuations

Financial Modeling

Preparing Prospectus

Roadshows

M&A Documentation

Interactions with Company

Professionals

Revenue Sources

Advisory Fees

Capital Raising Fees

Underwriting Fees


15/33

Confidential

Director and Managing Director

Vice President

Associate

Analyst

Intern

Word Processing, Research Support and Other

Secondary-Support Divisions

HierarchyinaTypical InvestmentBankingDivision

15

CAREERS IN FINANCE

Smallhierarchy

Hardworkmakes

iteasiertoclimb

uptothe

Directorposition

inlessthan8

years


16/33

Confidential

Financial analysis

Industry and company research

Developing client presentations

Valuation (Financial Modeling)

Marketing materials, management presentations

and road show involvement

Analyst Responsibilities

16

CAREERS IN FINANCE


17/33

Confidential

12-15 hour days

Multi-tasking

Lots of menial grunt work and micromanagement

Meetings and conference calls throughout the day

Sacrifice your personal life and health for this career

Very common to be forced to cancel vacations and

miss holidays/birthdays when needs arise

WhatYou Should Expect

17

CAREERS IN FINANCE


18/33

Confidential

Fun Resources

18

CAREERS IN FINANCE


19/33

Confidential

19

EQUITY RESEARCH


20/33

Confidential

Equity Research

20

CAREERS IN FINANCE

HedgeFunds/MM

Equity

ResearchDepartment

Sales &

Trading Desk

=ThinkTank

Produceresearch

ideas(reports)and

distributesitto

theirclients

Buy Side:

Money Managers

at

Hedge Funds Mutual Funds

Individual

Stock/Bond

buyers

Sell Side

Internalsalespeople

(salesand

tradingdesks)

Proprietary

tradingdesk


21/33

Confidential

Equity Research ServicesOffered

21

CAREERS IN FINANCE

Services Offered Work Profile

Independent Research

Coverage of Equities

Credit Research

Valuations

Financial Modeling

Make Research Reports

Research Notes

Recommendations

Interactions with Company

Professionals

Revenue Sources

Sharing Trading Fees

Fee from Sale of

Research


22/33

Confidential

Industry research reports

Overview summary of the industry

Market trend/conditions, Past and future outlooks

Current industry leaders and lagers

Company-specific reports (3 types)

Initiation of coverage: Company information, forecast

model, and risk factors

Update: Explain movement in the stock,

change/confirm earnings estimate, news frommanagement

Change in rating

Notes on importance events

Industry and company related

Equity ResearchProducts

22

CAREERS IN FINANCE

Ratings

Downgrade

(Underperform)

Lowerexpected

earningspower,

diminished

growth

Hold(Neutral)

Donotexpectmuchgrowth,

potential

problems

Upgrade

(Outperform)

Betterexpected

earnings,smartacquisition,

beneficiallong

termtrends

startingto

develop


23/33

Confidential

Basic Structure

Associate isjunior to Analyst

Who gets their name on reports?

Analyst runs the group

Is the one in charge of making investmentrecommendations

Within the Equity Research Department

Structure looks similar to banking

Not all analysts are MDs Most regarded talent sits on SSC

HierarchyinaTypical Equity ResearchDivision

23

CAREERS IN FINANCE

Smallhierarchy

Hardworkmakes

iteasiertoclimb

uptothe MD

positioninless

than10years


24/33

Confidential

Work hard & learn quickly

Comp skills (Word, Excel, PP)

Good writing skills are mandatory

Good communication skills

Good listeners and ask good questions

MBA is not mandatory to advance

Enjoy analyzing companies and trying to outsmart

other people

Formulafor Success

24

CAREERS IN FINANCE


25/33

Confidential

Buy Sidevs Sell Side Analysts

25

CAREERS IN FINANCE

Buy-Side

Assetmanagerswho

representindividualand

institutionalinvestors

Buyassetswiththegoal

ofincreasingclientwealth

Makemoneyfrom

performancecommission

andmaintenancefees Useonlypublicinformation

Sell-Side

Representinstitutionswhowanttoraisecapital

Selldebtandequity

productsandresearchtothebuy-side

Makemoneyoffoftradingcommissionsandtransactionfees

Haveaccesstoprivateinformation

Sell-sideprofessionalsissue,recommend,tradeand "sell"

securitiesfortheinvestorsonthebuy-sideto "buy" fortheirclients.


26/33

Confidential

26

PrivateWealth Management


27/33

Confidential

Assist client in constructing investment portfolio

strategy

Assist Clients in obtaining financing, selling assets,

tax efficiencies

Recommend and place trades on behalf of client

Estate and retirement planning

Helping clients obtain financial goals

PrivateWealth Management

27

CAREERS IN FINANCE


28/33

Confidential

Upside

Very entrepreneurial with nearly unlimited upside

Work/Life balance, especially once established

Relationship focused

Geographic flexibility

High demand for wealth management services

Downside

One of the most stressfuljobs available

Market takes away gains, hurts pay and angers clients Very hard to get established, high rate of failure

Highly competitive work environment, competitors in

same office

UpsideandDownside

28

CAREERS IN FINANCE


29/33

Confidential

CFA vs MBA (FINANCE)

29

CAREERS IN FINANCE

CFA

Financespecific

Masteroftrade

Costeffective

MBA

Generalized

Jackofalltrades

Expensivestudy


30/33

Confidential

A good analogy is that the curriculum of the CFA

program is a foot wide and a mile deep while the

curriculum of MBA programs are a mile wide and a

foot deep

If you plan on working in finance, the CFA programwill provide a wealth of knowledge. However, if your

career path veers out of finance, the chances that

you'll be able to utilize the curriculum are limited

In contrast, an MBA program is likely to provide

exposure across numerous fields of study thatcan be applied in almost any position, whether

in finance or not

CFA vs MBA (Finance)

30

CAREERS IN FINANCE


31/33

Confidential

The advantage of an MBA is that the knowledge

obtained in the program is valuable in other industries

outside of the investment world

The great disadvantage is cost - both the direct

cost of the program and the loss of income that

results from a two-year hiatus

The advantages of the CFA program are the ability to

acquire specific investment related skills at a relatively

low cost.

However, it is arduous, requiring a commitment oftwo years and 1,000 study hours + to complete it

Because of the commitments both in time and

money, few go on to acquire both the graduate

degree and the certification

CFA vs MBA (Finance)

31

CAREERS IN FINANCE


32/33

Confidential

Global InvestmentBanks

32

CAREERS IN FINANCE


33/33

Confidential

Educational:

NYT Dealbook: http://dealbook.blogs.nytimes.com/

Wall Street Journal: http://online.wsj.com/home-page

Seeking Alpha: http://seekingalpha.com/

MarketWatch: http://www.marketwatch.com/

Bloomberg: http://www.bloomberg.com

Investopedia: http://investopedia.com/

Recreational:

Wall Street Oasis: http://www.wallstreetoasis.com/ Dealbreaker : http://dealbreaker.com/

BankersBall: http://www.bankersball.com/

IBankingFaq: http://www.ibankingfaq.com/

Resources

33

CAREERS IN FINANCE

Documents

Careers in Finance v2