Careers - Induction to Finance

Roger Howgego/Richard Smith

July 2010

Agenda

• Roles and Functions

• How to Apply/Timing

• Preparation before Application

• Reasons for Rejection

• Your Strengths as a Candidate

• Career Progression

• Impact of Downturn on Recruitment

• Information Sources for Further Reading

Central Bank + Regulators + Treasury

Stock Exchange + Custodian Bank + Brokers - Clearers

CAPITAL USERS UNIVERSAL/INVESTMENT BANKS CAPITAL PROVIDERS

IssuersGovernment

CorporateSupranationals

Corporate Finance

Capital Markets(Trading Floor)

InvestorsAsset Managers

Hedge FundsPrivate EquityPrivate Wealth Management

BorrowersCorporates

RetailMortgages

Commercial Banking

LendersRetail

Institutional Corporations

Overview

Corporate Finance

Industry Specialist Groups

M&A

Geographic teams

Debt/Equity Capital Markets

Capital Markets

Equity and FICC

Sales – Geographic product

focus

Trading – Product focus

Research – Industry (Eq.)

Credit/Quant Strategic (FICC)

Prime Broker

Support

Risk

Finance

Treasury

Operations

Legal

Compliance

HR

IT

Project Finance, Commercial Loans, Correspondent/Retail banking

Investment/Universal Banks

Boutiques

Commercial

Greenhill, Jefferies, Close Brothers

Lloyds Banking Group, Barclays Bank, Sumitomo

Participants

IB/UB Barclays Capital, JP Morgan, Goldman Sachs, Deutsche Bank, Nomura, Standard Chartered

Hedge Funds

Private Equity

Private Wealth Management

Brevan Howard

3iKKR Permira

Barclays Wealth, Pictet

Asset ManagersBlackrock

PimcoJP Morgan Asset management

Investment Consultants

Regional Development Banks

Advisory/Accounting

Regulators

Rating Agencies

Towers WatsonMercer

IBRD (World bank)IFC

EBRD

PwCErnst & Young

DeloitteKPMG

SECBAFIN

FSA

MoodysS&PFitch

Finance division of corporates

SAB MillerShell

Diageo

Participants

Interdealer brokers

Information providers

Custodian banks

Public sector

Sovereign wealth funds

IcapTulllets

BloombergThomson Reuters

Northern TrustState Street

BoNY Mellon

Bank of EnglandFederal Reserve

ECB

Norges BankADIA

Australian Future Fund

Participants

How to Apply/Timing

• Formal programs, full time and internships/the milk round

• Analyst vs. associate

• On line process/cover letter and CV

• Lateral hires – company websites

• Network – main route to opportunities

• Direct approach – company websites

• Search firms/employment agencies http://www.newlifenetwork.co.uk/

• Advertised roles – www.efinancialcareers.com & company websites

FTSE 100

Preparation Before Application

• Thorough research of company to include:– Business divisions

– Structure and ownership

– Recent corporate history (earnings/events/personnel)

– Share price

– Recent transactions

– Competitors

– Value proposition/mission statement

• The role and how it fits into the organisation and contributes to revenues

• The markets in your chosen area of interest

• Current affairs and developments

Reasons for Rejection

• Spelling mistakes

• Copy and paste errors

• Grammar

• Poor presentation – fonts /alignment

• Too much irrelevant information

• Too little relevant information

• Poorly constructed cover letter

Your Strengths as a Candidate

• Differentiate yourself/ unique selling point

• Don’t forget language/cultural skills

• Highlight historic exposure to financial industry

• Personal investing/portfolios of any sort

• List any relevant books/journals/trade magazines read

• Demonstrate financial markets awareness – clubs, societies

• Dissertations or projects of a financial nature

• Relevant work experience or internships

Career Progression

ANALYST

ASSOCIATE

VICE PRESIDENT

SENIOR VICE

PRESIDENT

MANAGING

DIRECTOR

• Financial analysis

• Teamwork skills

• Complex modelling

• Client contact

• Leadership

• Team leadership

• Increased client contact

• Workflow responsibility

• Project leadership

• Revenue generation

• Training for MD role

• Firm leadership

• Strategic planning

• Personnel direction

Impact of the Downturn on Recruitment

• Fewer places and more competition

• Thorough preparation and commitment even more crucial

• More attrition should create openings

• Closure of entry level programs not an option

• More targeted approach

• One off roles

• All year round activity

• Internships have become even more important than before

Information Sources for Further Reading

• Individual company websites (www.gs.com, www.ms.com)

• www.efinancialcareers.com (available in paper form)

• www.ft.com

• www.bloomberg.com

• www.investmentfunds.org

• www.bis.org

• www.bba.org

• http://village.albourne.com/

ASSET MANAGERS

Aegon Asset Management Lazard Asset Management Alliance Bernstein* Legal & General Allianz Global Investors* Lloyds TSB Group Amundi (Agricole/SocGen) Man Group/GLG Axa Asset Management Mellon Financial Baring Asset Management Morley Fund Management (Aviva Group)* Bank of New York Mellon Natixis Asset Management BP Investment Management Nomura Asset Management Blackrock/Barclays Global Investors* Optiva BNP Paribas Asset Management Northern Trust Capital Group Orbis CDC Ixis Asset Management Pension First Cigna Pictet Asset Management Citigroup Asset Management Pimco Credit Suisse Asset Management Prudential Deutsche Bank Asset Management Putnam Investments European Investment Fund – (EIB Affiliate/SME Lending)

Rathbones

Fidelity Resolution (Britannic) Foreign and Colonial Sandford Bernstein Franklin Templeton Santander Asset Management Fortis Schroder Investment Management GE Asset Management SIG – Susquehana International Group GE Capital State Street Global Investors Generali Group Smith and Williamson Global Asset Management (GAM) Swiss Re Goldman Sachs Asset Management* Threadneedle HSBC Asset Management UBS Asset Management Henderson Global Investors Vanguard ING Group Zurich Financial Services Intesa Invesco Asset Management Scotland: Investec Baillie Gifford Intesa Asset Management Scottish Mutual Insight Investment Management Scottish Widows JP Morgan Asset Management* Standard Life* *Firms that have a graduate program Further Information Sources: Investment Management Association www.investmentuk.org European Fund and Asset Management Association www.efama.org

INVESTMENT/UNIVERSAL BANK LIST

American Express Macquarie Bank of America Merrill Lynch Morgan Stanley Barclays Capital Mitsubishi UFJ Securities BBVA Mizuho BNP Paribas Nomura Credit Agricole Investment Bank (CIB) Royal Bank of Canada Capital Markets CIBC World Markets Royal Bank of Scotland Citigroup NM Rothschild Credit Suisse Group Rabobank Daiwa Securities Sanpaolo/Intesa Deutsche Bank Societe Generale Goldman Sachs Standard Chartered GE Capital Standard Bank (South Africa) HSBC Sumitomo Mitsui Banking Corporation ING Bank Banco Santander Investec UBS JP Morgan Chase Unicredit Lazard Further Information Sources: British Bankers Association www.bba.org.uk Or country/city specific bankers associations

BOUTIQUE/NICHE BANKS Alix Partners – Financial Restructuring Jeffries & Co Alvarez & Marsal – Financial Restructuring Lexicon Partners Altium Moelis Ambrian Natixis Augusta & Co NM Rothschild Blackstone Noble Group Blackwood Capital Nomura Code – Life Sciences Focus Bishopsfield Partners (Structured Fin) North Square Capital Broadpoint Gleacher Numis Securities Bryan Garnier & Co Ondra Partners Caliburn Partnership Oriel Securities Cavendish Corporate Finance Pactum Advisors Cenkos Securities Panmure Gordon Centreview Partners Perella Weinberg Partners Chanin Capital Piper Jaffray CLOSE BROTHERS Mid-Cap Specialists Qatalyst Partners Coller Capital – (Secondary PE) Renaissance Capital Collins Stewart Richmond Park Partners Compass Advisors Sagent Advisors Cowen & Co D E Shaw Evercore Shore Capital Evolution Group Spayne Lindsay EXOTIX (Illiquid Specialists) Stamford Partners – Food & Drink Fenchurch Advisory Partners Stone Key Partners Gordon Brothers Grant Samuel & Assoc Distressed Debt Greenhill Trafalgar Am Gresham Partners Oaktree Cap Man Hatch Corporate Finance Alchemy Special Ops Hawkpoint Partners Troika Dialog Houlihan Lokey- M&A Advisory William Blair Ingenious Corp Finance- Media Preqin – Data Provider Investec Hemscott Rankings

Further Information Sources: www.afme.eu

www.liba.org.uk

PROFESSIONAL SERVICE FIRMS Ernst & Young KPMG Deloitte PwC BDO Stoy Hayward Grant Thornton

ISLAMIC BANKING The Islamic Bank of Britain – Retail European Finance House European Islamic Investment Bank Gatehouse Bank of London and Middle East

INFORMATION SOURCES FOR FURTHER NAMES AFME (Assoc. Financial Markets in EU) www.afme.eu SIFMA (Securities Industry and Financial Markets Association)

www.sifma.org

European Bankers Association International Financial Services London www.ifsl.org Financial Stability Board – BIS Subsidiary Basel Committee on Banking Supervision ICMA – International Capital Markets (Stock Exchanges)

OTHER FINANCIAL INSTITUTIONS

SUPRANATIONALS

African Development Bank IBRD - World Bank – Washington Asian Development Bank IFC - International Finance Corp. –

Washington/London/Paris Bank For International Settlements InterAmerican Development Bank –

Washington EBRD – European Bank For Reconstruction And Development

Crown Agents - UK

European Investment Bank DFID- Department For International Development

Kreditanstalt Fur Weideraufbau

CENTRAL BANKS

Bank of England European Central Bank – Frankfurt All Countries have a central bank usually located in the capital city

RATING AGENCIES

Fitch Standard and Poors Moodys DBRS

REGULATORY BODIES ICFR – International Centre for Financial Regulation

FSA - Financial Services Authority

SEC – Securities & Exchange Commission Most developed countries have an equivalent

INVESTMENT CONSULTANTS

Aon Consulting Fortune Asset Management (Close

Brothers Sub)

Barrington Partners MSCI Barra/Riskmetrics

Cambridge Associates Redington Partners

Duff & Phelps Towers Watson

Russell Investments Chatham Financial

Hewitt Associates Scorpio Partnership

Mercer Investment Consultants FTI Consulting

Mourant Q Finance

INFORMATION PROVIDERS

Bloomberg Euromoney Thomson Reuters Fidessa Financial Times Institutional Investor

INTER-DEALER BROKERS/TRADING HOUSES

BGC Partners GFI ICAP/Refco Citi Index Cantor Fitzgerald CMC Markets EXOTIX (Illiquids) MF GLOBAL Tullet Prebon Mako Capital Tibra CTC

CLEARING HOUSES

LCH Clearnet Euroclear

PRIVATE EQUITY/VENTURE CAPITAL

www.bvca.co.uk www.evca.com Plus country specific associations in most western economies

INSURANCE COMPANIES Association of British Insurers www.abi.org.uk

Lloyds Market Association Insurers/Reinsurers/ Brokers www.insurancecareers.cii.co.uk Chartered Insurance Institute RSA Swiss Re Munich Re

FINANCE DIVISIONS OF CORPORATE ENTITIES

Unilever Shell BP BT Diaego Siemens Nestle BMW Vodafone EDF Trading Glencore RWE Trading Total

INDEPENDENT RESEARCH HOUSES

TOP 10 IN EUROPE Redburn Partners New Street Research Autonomous Research BCA Research Absolute Strategy Research Capital Economics Helvea Auerbach Grayson Arete Research Druganalyst Research

Further Information Sources: European Assoc. Of Independent Research Providers http://www.euroirp.com/

PRIVATE BANKING Spears WMS - Publication www.spearswms.com

Societe Generale Private Bank

UBS Private Bank Dresdner Credit Suisse Private Bank RBS - Coutts Lombard Odier Darier Hentsch Barclays Wealth Julius Baer Zurich Kantonal Bank Pictet & Cie Bank Leu Vontobel Wachovia UBP - Union Bancaire Privee Berry Asset Management Sarasin Brewin Dolphin Deutsche Bank Cazenove Capital Management JP Morgan P.B GAM London Ltd Goldman Sachs Jupiter Asset Man Citigroup P.B. Newton Inv Man Merrill Lynch Rothschild P.B. Bank Of America Ruffer Llp HSBC Republic Schroders P.B. ABN Amro SG Hambros BNP Paribas P.B Veritas A.M. Morgan Stanley Dean Witter

FAMILY OFFICES

Sandaire Genspring Family Office (Fla) Marcuard Family Office (Zurich) Pitcairn (Penn)

HEDGE FUNDS (EUROPE)

TOP 25 Blackstone/Barclays Global Investors The Children’s Investment Fund Man Investments Cheyne Capital Man. Bluebay Asset Man. Lansdowne Partners Winton Capital Man. Brevan Howard Asset Man. ADI Gestion (Paris) Bluecrest Capital Man. Alternative & Quantitative Investments

(UBS) (Zurich) Sloane Robinson M&G Investments HSBC Polygon Investment Man Marshall Wace Dexia Asset Man. (Paris) Gartmore Investment Spinnaker Capital CQS (UK) RAB Capital Aspect Capital Brummer & Partners (Stockholm) London Diversified Fund Man. AIMA.Org Hedge Fund Assoc www.thehfa.org https://village.albourne.com/user/news.pcg Search Firms www.newlifenetwork.co.uk/executive-and-

senior-managerial-search-firms-C109.html