Discover this place Shape your world TM

Discover this place Shape your world TM

Open doors to a career in finance

Open doors to a career in finance

Master of Science in FinanceMaster of Science in Finance

MS Finance

Agenda

• Employment opportunities for finance graduates

• Graduate degrees in finance

• The Vanderbilt MSF

• Next steps

MS Finance

The Vanderbilt MS Finance

Employment Opportunities for Finance Graduates

MS Finance

Employment• The employment market for graduates is

improving.• Hiring of 2013 graduates is expected to increase

13% over 2012*.• Most sought after majors are:

1. Finance2. Computer and Information Science3. Accounting4. Business Administration/Management5. Mechanical Engineering

* NACE Job Outlook Survey 2013

MS Finance

Jobs in Finance• Many different roles in finance:

– Investment banking– Investment management– Investment research– Sales and trading– Real estate finance– Private wealth management– Advisory services – Corporate finance– Etc…

• Can be hard to decide which is best for you.• Important to take the time to explore all of your options and

work towards making a decision.

MS Finance

Investment Banking• Investment banking covers a range of different roles, including:

– Investment banking or corporate finance– Sales and trading– Research

• The investment banking division includes:– Capital markets (raising funds via issuing equity or debt)– Mergers and acquisitions (advisory role for bidders or

targets)• Generally organized along industry coverage (e.g. healthcare)

and product coverage (e.g. M&A or leveraged finance)• Investment banking requires long hours and lots of flexibility.• Often have very structured analyst programs.• Viewed as an excellent launching pad for other finance roles.

MS Finance

Investment Management• Investment managers seek to grow capital and generate

income for their clients.– Involves researching and analyzing potential investment

opportunities and allocating clients’ funds according to their investment objectives.

• Client may be retail (individuals) or institutional (companies and municipalities).

• Includes hedge funds, mutual funds, pension funds, university endowments, etc.

• Investment managers are on the “buy-side”.• Also known as asset management.

MS Finance

Private Wealth Management• Provide banking, asset management, insurance and

fiduciary and tax services to high net worth individuals.• Coordinate a network of bankers, investment managers and

other specialists.– Interact with multiple divisions.

• Communication and “people” skills are very important.

• UK / Vandy MSF graduates– Sam Gillespie ’13 (JP Morgan, New York)– Tony Cox ’09 (Goldman Sachs, Atlanta)

MS Finance

Investment Research• Conduct “fundamental” research:

– Analysis of factors and trends driving an industry’s growth prospects

– Analysis of companies within an industry– Company-specific financial analyses and forecasts– Valuation of companies’ securities

• Activities include gathering information, writing reports, and selling research to clients.

• Can be “buy-side” or “sell-side”.• You need to write well and be okay with an early start!

MS Finance

Corporate Finance• Many different roles when working inside a corporation:

– Divisional Financial Analysis– Corporate development and strategic planning– Treasury– Cash management

• Dealing with financial decisions of the company.• Combination of finance and accounting skills is important.• Often corporate roles have a better work/life balance than

other roles in finance.

MS Finance

Real Estate Finance• Involves buying, selling, leasing, management, and

development of property.• Network is extremely important and the working

environment can be less corporate than other finance roles.

• UK / Vandy grads:– Jonah Hescock ’10 (Healthcare Realty Trust, Nashville)– Ken Vereen ’11 (Deutsche Bank, Jacksonville)– Dallas Rose ’12 (Goldman Sachs, Dallas)

MS Finance

Finance Recruiting• Most but not all entry level jobs are called “analyst”

positions.– “Associate” in investment research.

• Many firms have 2 year analyst programs.

• The recruitment cycles for different finance jobs are not the same.– Investment banking: Sept-Oct– Corporate finance: Oct-Dec– Investment research and real estate: just-in-time

• Networking is the number one way that people land jobs in finance.

MS Finance

Where to find out more information

• Websites:– www.vault.com– www.wetfeet.com– www.careers-in-finance.com– www.mergersandinquisitions.com– www.streetofwalls.com– www.wallstreetoasis.com

• Visit your undergraduate career services center

• Start talking to people– UK alumni– Local firms

• Get an internship

MS Finance

The Vanderbilt MS Finance

Graduate Business Degrees

MS Finance

Graduate Business Degrees• MBA

– Established and well known.– Generalist business degree, will include classes on

strategy, marketing and accounting as well as finance.– Can specialize in one or two areas.– Generally requires work experience.– Usually a 2 year degree with summer internship.– Usually a terminal degree.– MBAs go into jobs that require work experience. Often

called an “associate” in finance.

MS Finance

Graduate Business Degrees• MSF

– Designed for recent graduates with little to no work experience.– Focused on financial economics and analytical skills.– Usually 1-1.5 years.

• Financial Engineering programs– More quantitative than MSF.– Often run by a math department.– May require work experience.– Graduates target heavily quantitative finance roles (“quants”).

• PhD– 5 year research degree.

MS Finance

MS Finance degrees• MSF degrees are increasingly common but are still

relatively new.• Attractive to:

– Students with a non-finance major who want to transition into finance

– Students who want additional finance training in a graduate b-school setting

– Students from “non-core” recruiting schools who want access to a broader recruiting market

– Students seeking a “brand” on their resume and to broaden their network

• Lots of different programs available

MS Finance

Things to keep in mind• When choosing a business school some things to

think about are:– Size– Location– Career management resources– Alumni base– Curriculum—electives vs “lock step”– Faculty– Brand– Cost

MS Finance

How to find the best school for you

• Do your research– School website– US News & World reports– FT rankings (mostly European schools)

• Talk to people and ask lots of questions– Alumni– Admissions personnel– People like me

• Go for a visit

• Decide what is important to you and whether the school can help you achieve your goals

MS Finance

The Vanderbilt MS Finance

Vanderbilt MSF

MS Finance

Goals of the MSF• Develop a strong finance backbone in one year

• Gain practical finance and business skills, such as:– Portfolio theory– Derivative pricing– Asset pricing– Firm valuation– Risk management

• Work side-by-side with experienced MBA students from a variety of backgrounds and learn from their experiences

• Expand your career opportunities in a competitive field

MS Finance

The MSF Curriculum• 32 hours of coursework

• A strong core of required courses with a variety of advanced MBA electives

• 7-week modular system

• You can take more courses and have more flexibility to customize your degree

• I will work closely with you to design your curriculum to suit your career goals

MS Finance

August Orientation• MSF students arrive on campus in late July / early

August and attend intensive classes for two weeks.

August "Kick Off" and Orientation

Financial Economics I (MGT 401)

Communications and Professional Development (MGT 404)

MS Finance

Fall Semester• Modules I and II are mostly MSF “core” classes:

• Students with prior accounting classes may be exempt from Introduction to Accounting.

Module 1 Module 2

Financial Economics II (MGT 402) Corporate Value Mgmt (MGT 432a)

Financial Modeling (MGT 405) Derivatives Markets (MGT 435c)

Introduction to Accounting (MGT 311) Elective

Econometrics (MGT 403)

MS Finance

Spring Semester• Modules III and IV are all electives:

Module 3 Module 4

Elective Elective

Elective Elective

Elective Elective

Elective Elective

MS Finance

Customize Your Degree

• Active Portfolio Management• Advanced Financial Reporting• Advanced Spreadsheets• Bond Markets• Business in the World Economy• Corporate Financial Policy• Corporate Restructuring• Derivative Securities Valuation• Equities Markets• Ethics in Business• Federal Income Taxation of M&A• Financial Data Analysis• Financial Institutions

• Financial Reporting• Financial Statement Analysis• Game Theory & Business

Strategy• Intl. Financial Markets &

Instruments• Launching the Venture• Mergers and Acquisitions• Negotiation• Real Estate Financial Analysis• Real Estate Investment &

Development Analysis• Risk Management• Taxation of Corporations &

Joint Ventures

Choose from a variety of electives, including:

MS Finance

Discover Your Career Path• Quantitative Finance Track

– Sales & Trading, Investment Research, Proprietary Trading, Private Equity, Investment Banking and Risk Management

– Asset/Investment Management/Brokerage, Treasury and Securities, Insurance, Mortgage Banking

• Corporate Finance Track

– Corporate/Industry Finance: Divisional Financial Analysis, Corporate Development & Strategic Planning, Treasury, Cash Management

– Commercial Banking, Credit Card Services and Operations

• Other

– Real Estate

– Consulting

– Financial Economics/Finance PhD preparation

A selection of likely career paths includes:

MS Finance

Spring Semester• Quantitative finance track:

Module 3 Module 4

Risk Management (MGT 532) Quantitative Portfolio Mgmt (MGT 539g)

Financial Data Analysis (MGT 539a) Derivative Valuation (MGT 535a)

Fixed Income Markets (MGT 435b) Elective

Elective Elective

MS Finance

Spring Semester• Corporate finance track:

Module 3 Module 4

Corporate Financial Policy (MGT 432b) Financial Statement Analysis (MGT 513)

Fixed Income Markets (MGT 435b) Elective

Elective Elective

Financial Reporting (MGT 411)

MS Finance

Career Management • What is the Career Management Program?

– Personalized support to help you meet your career goals – A multi-step series of interactive workshops and

coaching sessions that prepare you for all steps of the job search

• Goals of the program are:– To help you be successful in pursuing your career goals– To build skills necessary to plan and conduct a

successful career search

MS Finance

Career Management • What is the Career Management Program?

– Professional Development and Communications class– Resume and cover letter review– Mock interviews– One-on-one coaching and career advice– MBA Peer coaches– Networking treks: Wall Street, Houston, Asia

• Professional clubs at Owen are another important career resource– Finance club– Consulting club– Max Adler Student Investment Fund

MS Finance

The Vanderbilt MS Finance

What to do next

MS Finance

Next steps• Learn more about finance careers

– Internet– Career center– Tap into your network– Internships

• Visit Vanderbilt to learn more about MSF– Next campus visit day is Monday March 18.– Attend class, meet current students, experience b-

school.– Welcome to attend on any other day.– Contact: msfinance@owen.vanderbilt.edu