A New Journey
AUSTRALIA’S FINANCIAL STRATEGY IN AN UNCERTAIN ISSUE 141 GLOBAL ECONOMY George Street Review |
Inside... 4 5
CHAIR’S REPORT Courtney Olden WHAT NOW FOR INVESTORS Dylan Gonzalez
6
THE WOLFY Edward Langley
8
BRW YOUNG RICH LIST Courtney Olden
10
A NEW ERA IN BUDGETING Jonathan Colak
11
TOP YOUNG TRADERS Kingsley Advani
EDGE SERIES REVIEW 12 BIG Reinhold Schmidt
14
GET SPARE $$ BILLS Sarah Campbell
16
WHAT THE FINANCE Mark Johnman
17
CHANGING TIMES FOR FED Sally Moore
18
GRABBING THE BATON FINSIA
20
NEW YEAR, NEW YOU Jessica Howe
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JAPAN GOES FOR GOLD Joy Du
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GEORGE’S NEXT GAMBLE Andrew McNaught GRAD SEASON GUIDE
24 Courtney Martin - CDC | George Street Review
From the Editor
If it doesn’t challenge you, it won’t change you.
W
ith 2013 in the past, Summer almost over and a fresh faced committee, this edition is all about new journeys, new experiences, new challenges, new opportunities, and more importantly, embracing this moment as a time for change. I was recently reading an article by business guru, Seth Godin, where he explained the economy now gives us more leverage than ever before, making it the perfect time for transformation and the perfect time to start doing work which really matters. He made me realise that sometimes polishing or improving ourselves might not be the key to making things better; we may just have to press the reset button and reinvent the game and reinvent ourselves. Reinvention is exciting and addictive (once you get started). Over Christmas I’m sure you were all seduced by the excitement of your New Year’s Resolutions. You’ll conquer 2014 as a new person with new motivation and new attitudes. You’ll be more productive. More friendly. More stylish. You’ll exercise everyday and eat organic foods. You won’t leave assignments to the last minute. You will cut down on coffee and red bull. But in reality, how many of these have you kept so far? And now you’re thinking to yourself ‘meh, who cares, I’ll be committed next year’. Just because the year is now progressing on (very, very fast) doesn’t mean you cannot re-start your reinvention now. Empower yourself to understand your worth, your potential, your uniqueness and your strengths and weaknesses, and commit yourself to becoming the best version of yourself and the best at what you want to do. Just like you made the decision to come to Bond, and to have one too many shots before Dons, make your reinvention a priority and make the decision to commit to your transformation. I would like to thank Mark for all his hard work in assisting me in editing this edition, and I’d like to wish every student the best of luck for all your remaining assessments and exams. To keep up to date with everything BIG, visit: www.bondinvestmentgroup.org https://www.facebook.com/BondInvestmentGroup Sending love and light to you all.
Brigette xoxo Brigette Foot Publications Director
George Street Review |
Chair's Report Welcome to the first issue of George Street Review for 2014! First things first For the Bond Investment Group members I haven’t had the privilege of meeting yet, I would like to formally introduce myself as the new Chair of BIG. Your 2014 BIG Committee (in both size and personality) have hit the ground running and many of you will have already seen the yellow BIG logo plastered all over approved and unapproved poster locations, or seen some of our team swanning about campus in their signature black and yellow BIG shirts.
technical skills.
I began the year feeling the pressure given the BIG shoes (sorry, last one) the incredible Jenna Wong left behind to fill, but I am excited for you to see the Group continue to grow in the coming year.
The Week Just Gone We hope you’re all keeping up to date with the market place and the latest on the deals as they happen through The Week Just Gone. If you’ve missed the memo, sign up to receive updates on the homepage of our website or visit our Facebook page.
The Current BIG Committee Introducing this semester’s team: Deputy Chair (Media): Mark Johnman Deputy Chair (Events): Reinhold Schmidt Secretary: Deborah Horsley Treasurer: Joy Du Corporate Relations Director: Jonathan Colak Social Media Director: Dylan Master IT Director: Kingsley Advani Publications Director: Brigette Foot Promotions Director: Jessica Howe Events Officers: Sally Moore, Edward Langley and Andrew McNaught General Officer: Sarah Campbell file:///C:/Users/Brigette/AppData/Local/Temp/Hello.pdf This semester so far BIG Edge Series To kick off 2014 we were really excited to bring back the BIG Edge Series during weeks 4-6. The BIG Edge is a series of three seminars designed to introduce students to the world of trading. It was standing room only in the Macquarie Trading Room for all three seminars, and it was fantastic to see so much interest in the technical aspects of trading. Stay tuned George | George Street Street Review Review for4 |more events in the coming year to further develop those
Stock Trade Competition traight after BIG Edge we launched into the BIG Stock Trading Competition. The Competition is currently running and there will be some great prizes for the most successful Bondie come Friday Week 12. Godspeed to all of you that have already signed up – we look forward to seeing your progress throughout the next few weeks!
What to look forward to Speaker Series We are so fortunate to host Ben Southall at our first Speaker Series for 2014. He’s an adventurer, digital journalist, social media guru, and a guy that sometimes sleeps in his Land Rover. You might also know him as the lucky scoundrel that managed to snag the Greatest Job in the World as caretaker of the Great Barrier Reef. We hope you’re as excited as we are to hear his incredible story and his take on how to find and make the most of your competitive edge. Next semester Semester 142 is shaping up to be a huge one with the return of the Investment Banking Competition and the annual Titans of Industry Forum. We won’t divulge the juicy details just yet, but watch this space for phenomenal guest speakers, opportunities to make industry contacts, and guidance in developing skills you’ll need come grad-interview time. Here’s hoping you came out of mid-sems alive, and as always, think BIG! Courtney Olden Chair
What now for Aussie Investors? Where to from here? DYLAN GONZALEZ Shareholders have proved to be more than happy to sacrifice growth for safety in the postmining boom. The trend at the moment seems to be the desire to secure a sustainable dividend that outweighs what you can get from a term deposit. The key to this strategy is to look for growth at a reasonable price. A useful way to begin this search is by examining some of the key sectors and industries of the share market.
BANKS High growth and banks don’t go together. The sector’s growth profile in the coming years is estimated at around 7-8%, and closer to 6% over the longer term. But not all banks are equal. Some have earnings profiles dominated by capital, which has not served them well during recent years. However, analysts expect capital earnings to soon pick up.
ENERGY Energy is the standout corner of the market for large earnings –it has the highest growth expected in the coming couple of years (28% annually on average). As the mining boom fades, an energy boom, centred on multi-billion dollar natural gas projects throughout Queensland and Northern NSW, is expected to emerge by 2015. Although future growth expectations are high, so too is the risk, with extreme environmental concerns surrounding natural gas threatening the long-term viability of these projects.
MINING It would take a brave investor to plunge into the rapidly decelerating mining sector, with the country’s largest gold miner, Newcrest Mining (NCM) recording an 88% slump in its half-year profit to $40 million. However, that’s not to say that the recent glimpses of value couldn’t reward the bold stock picker, with Australia’s second largest resource company, Rio Tinto (RIO), issuing a better than expected full year underlying profit for the 12 months from December 2012 - December 2013.
INFORMATION TECHNOLOGY Unfortunately, Australia does not boast an extensive technology sector. Investors would need to look overseas to get a decent exposure to this fast-growing sector of the global economy.
HEALTHCARE Great growth prospects can be found within this sector. Most companies within this segment look expensive on price, but once future growth expectations are factored in, it can be seen why investors view them as good options.
George George Street Street Review Review | |5
The Wolfy BY EDWARD LANGLEY
| George Street Review
H
ollywood has always had a very powerful ability to generate interest amongst young people in something otherwise thought to be quite dull. Through special effects, attractive leading men and women, and some level of embellishment, films coming out of Tinseltown have always captured the imagination of the world in ways that other mediums can only dream of. With fast cars, promiscuous women and non-stop action, blockbuster movies have always opened our eyes to passions we didn’t know we had; however brief they may be. Recently, one such movie has brought about a new wave of intrigue in the world of finance; a spectacle not experienced since Oliver Stone persuaded everyone that “greed is good” when he brought out Wall Street in 1987. Martin Scorsese’s The Wolf of Wall Street, based on the autobiography of now world famous stockbroker Jordan Belfort, has introduced young men and women everywhere to both the wonders and dangers of life on Wall Street.
in finance; in fact in some respects it is not an accurate depiction at all. But to some extent the hardworking attitude and drive to succeed possessed by the characters depicted in Scorsese’s work demonstrate exactly the qualities essential to flourishing in a world ruled by profits and percentages. The role of a stockbroker may be diminishing in modern day trading, but the role of a good salesperson will always be vital to a company’s wellbeing. Jordan Belfort’s “sell me this pen” experiment speaks to far more than just dishonestly pushing penny stocks to wealthy businessmen. Whilst the technological age has brought about an increased reliance on computers to analyze trends and dictate company decisions; the smooth as silk dealers who used to rule Wall Street will always still have a crucial role in the finance world. And
“THE ONLY THING STANDING BETWEEN YOU AND YOUR GOAL IS THE BULL**** STORY YOU KEEP TELLING YOURSELF AS TO WHY YOU CAN’T ACHIEVE IT.” - JORDAN BELFORT -
Whilst the less than ideal fate of “Wolfy” should, at least on some level, act as a lesson in the perils of self-indulgence, it seems that the majority of movie-goers are coming away with a different attitude; an insatiable appetite for wealth and success. Wooed by the crystal white Ferrari, the 41 metre long yacht, and above all the gorgeous second wife, teenagers and young adults everywhere are yearning for the lifestyle of a high rolling Wall Street tycoon. However, it’s not only a love of excess that Scorsese’s work has garnered in its audience; people also seem to be developing a newfound affinity with the world of finance. Whether by opening up a CommSec account, downloading the ASX iPhone app or just discussing penny stocks with Dad at the dinner table, this new breed of stock market enthusiast bodes well for business faculties and employers Australia wide.
while “The Wolf” may not be the most exemplary role model for ambitious young men and women, his story has at least introduced them to a sphere that they may well go on to rule; a sphere in which determination and tenacity have always thrived.
The Wolf of Wall Street may not be the most accurate portrayal of what awaits those who undertake a career George Street Review | 7
New Additions
to the
BRW
YOUNG RICH LIST ...and how on earth they did it
2013 SAW SOME IMPRESSIVE NEWCOMERS TO THE BUSINESS REVIEW WEEKLY’S YOUNG RICH LIST, AND YOU MIGHT BE SURPRISED BY HOW THEY GOT THERE. BY COURTNEY OLDEN The list only features Australians with self-made money aged 40 and under. Looking at the current list, it appears we’ve either got to become very good at sport, jump on the tech-train, or divorce a media mogul if we want any chance at an invitation to the Young Rich club. Keep up to date with the latest additions at www.brw.com.au. Here are a few rising stars that made it cut for the first time in 2013:
Wealth: $40 million
Erica Baxter
Wealth: $40 million
Lilly and Tom Haiken
UNSW graduate Allon made his debut onto the Young Rich list by pulling a couple of clever party tricks. He co-founded Urban Compass, a website that seeks to simplify the process of finding a rental apartment in New York City; sold a search engine algorithm to Google; and created a tool to analyse | George Street Review social activity on the internet and sold that to Twitter.
A big settlement from her recent divorce from billionaire James Packer has pushed the Australian singer and model straight to the top half of the list.
I’ll forgive you for not recognizing the Haiken name, but I won’t forgive you for being ignorant of their money-making chain of chocolate stores. This couple are the proud owners of the Australian Max Brenner franchising rights.
Ori Allon
Wealth: $40 million
Patrick Coughlan Wealth: $26 million
Tim Gurner Wealth: $26 million
Geoff Ogilvy Wealth: $25 million
Patrick earned his spot on the list by turning over distressed pubs with his rich larrikin mate John Singleton and childhood friend Rod “Ned” Kelly. His first acquisition was the Grosvenor Hotel in Sydney’s Waterloo and now the group holds nine pubs in Sydney and two in Brisbane.
Gurner is a major residential property developer in Melbourne. This entrepreneur started early, starting his first business, a gym, at 20.
It turns out Ogilvy isn’t bad with a 6-iron. Winning the US Open ensured he made the list last year
Simon Crowe
Tammy May
Ricky Ponting
Wealth: $23 million
Wealth: $20 million
Wealth: $20 million
We love our burgers and Crowe took that idea and ran with it, founding the Grill’d chain of gourmet burger restaurants and laughing all the way to the bank.
May founded MyBudget, a personal finance and debt relief company which is set grow further in the coming year, perhaps ensuring May’s place on list.
Tasmanian born Punter Ponting continues to rake in the coin as a successful commentator and is still highly attractive to sponsors. He just made the age limit at 39.
George George Street Street Review Review | |9
A new era in
Budgeting By Jonathan Colak
A budget is the first step to financial freedom and security. Once you know how to setup a proper budget, you can plan your life better, sit back, and have a secure future. Here are some tips to budgeting better in 2014.
1. IDENTIFY YOUR INCOME Find out your actual income. This may be your weekly or monthly salary, money from your parents or student welfare payments.
2. IDENTIFY YOUR EXPENSES These are the recurring necessities that you pay each month. For most students this includes: - Rent or accommodation expenses - Fuel - Groceries - Eating out - Bills
3. ALLOCATE THE REMAINING INCOME For most people, completing the first two steps is easy. It’s what you do with the money after paying expenses that determines how well you are at budgeting. There are three things that the leftover money can be budgeted to: •- Buffer: This is something my mum taught me. There will always be unexpected expenses each month that you won’t plan for. By maintaining a good buffer account, some petty cash savings, you will be prepared for any nasty surprises. •- Savings: Ideally you will want to allocate around 20% of your income to savings, regardless of how much you war. What you do with those savings is completely up to you. You can invest it, trade it, put it into high interest earning account or buy antiques. As long as you don’t spend it. 10 | George Street Review • - Bonuses: This is where you can spoil yourself with any leftover money. Don’t go too crazy; allocate maybe $60 to spend on something special for yourself.
The Top Young Traders, Bankers And Dealmakers BY KINGSLEY ADVANI
Lucas Duplan
Luis Alvarado
22 | Founder of Clinkle
29 | Investment research analyst, Wells Fargo Private Bank
Lucy Baldwin
Sam Barnett
29 |Managing director, Goldman Sachs
Tracy Britt Cool
29 | Financial assistant to the chairman, Berkshire Hathaway
24 | Founder, SBB Research Group
Leigh Drogan
27 | Founder, Estimize
George Bachiashvili 28 | Founder, Georgian Co-Investment Fund
Ganesh Betanabhatla
28 | Managing director, Talara Capital
Fred Ehrsam
25 | Cofounder, Coinbase George Street Review | 11
think BIG
The BIG Edge Series A review of the three sessions... REINHOLD SCHMIDT
different types of analysis and different instruments and timeframes that traders can work with.
This Semester saw the return of Bond Investment Group’s Edge Series, a set of three finance seminars run by the BIG Committee. It was targeted at all students who study finance or a business related degree, or who have an interest in finance and trading.
The final session was presented by Courtney Martin from the Career Development Centre and was focused around career options for commerce students. As the most of the participants were in the first two years of their degree, the focus was on introducing some of the potential career pathways in accounting, finance and economics.
The BIG Edge Series used the experience of alumni, staff, older students and the advice of firms to educate students on the principle aspects of trading and to develop skills and knowledge that can be directly applied to their careers. Each session focused on educational content and also character building activities.
Finally, from all of the team at Bond Investment Group, we would like to extend our sincerest thanks to Dr Vanstone and Courtney for sharing their expertise at the BIG Edge Series. To all of those who came along, thank you for participating in the BIG Edge Series and we hope to see you all at future BIG events. And remember, always…
The first session was run by one of the BIG members, who educated those attending about the key concepts of investing and trading. Some of the topics that were covered included common market phrases like long and short, the difference between fundamental and technical analysis, as well as a brief promotion of the ASX Share Market Game. This game will help students further expand upon their experience in the market without having to risk any of their own money.
Plan the trade and and trade the plan!
The next session was delivered by Dr Bruce Vanstone, a staff member at Bond and an active trader himself. His session further expanded on concepts learnt in the first session, as he took the students down the path that led him to become a trader. Dr Vanstone explained the difference between discretionary and systematic traders, | George Street Review 12 | 12 George Street Review
IMPORTANT DATES TO REMEMBER:
• Investment Banks: applications close on 3 April. J.P. Morgan will be on campus on 13 March from 2pm-4pm in the CDC Seminar Room. • Management Consultants: varying closing dates for applications. Check their websites now. • The Big 4 Professional Services Firms: varying opening dates and rolling recruitment. Ernst & Young, Deloitte and KPMG will be attending the Careers Fair on 27 March in the Sports Hall. • Big 4 Roadshow (Ernst & Young, Deloitte, KPMG and PwC) will be on campus on 11 March from 3-5pm. • PwC will be at Wednesday By The Water on 5 March with their ice cream van.
PLAN THE TRADE AND
TRADE THE PLAN George Street Review | 13
Get Spare $$ B BY SARAH CAMPBELL
2014. New year. New semester. New uncertainties. There is
simple solution to this is to take out $20 / $50 from an ATM and
one constant in all of this. The absence of money. So whether
pay the old fashioned way.
it was a new years’ resolution or you couldn’t afford to attend the Physical a few weeks ago, here’s some tips to tape up
5. Pay your bills at a constant rate: For
that hole in your wallet.
example, pay your phone bill on the 3rd of every month and
1. Find a steady (legal) income
your rent on the 15th, don’t wait until the day that it’s due just in case you have had to catch more taxis than expected that
Whether it’s from a job, donations from your parents or you
week. There’s nothing worse than having to pay an overdue fee!
have a whole lot of couches you can search for coins in;
Reminders on your phone and sticky notes all over your walls
earning money is a top priority. Take note of how much you
are always a good way to remember bills.
are receiving on a monthly or weekly basis.
2. Write a list
6. Set two weekly goals:
#1: Minimum SAVINGS this week – make it challenging, but
#1: Things you HAVE to pay: phone bill, ticket to Titans,
not impossible. At the end of the week you should put this in the
rent, Palaver ticket. Keep note of whether they are weekly
online account.
costs or one off.
#2: Maximum SPENDINGS this week – Again, make this
#2: Things you WANT to pay:– Max Brenner*.
challenging but achievable. If you have any left over at the end
3. Create an online savings account If
of the week: put it into your online account and then come see me and I’ll give you a pat on the back. The more money in that
you haven’t already got internet banking, then you’re missing
online account, the more interest you’ll earn on it (I think I score
out. The best way to manage online banking is to create an
$1 every 3 months!!).
esaver account. This is not directly linked to your magical money card and will help to keep money safe from accidental
These two goals should add up to be your total income… if they
spending. Putting money in my secret account has the same
don’t you might need a calculator! The war between spending
effect on me as hiding $5 notes all through my room (this is
and saving is a major part of pretty much everyone’s life. The
an alternative option).
key is to have enough for those really inconvenient, but really
4. Cash is your friend, PayPass is not
necessary expenses. May the money be with you!
Limit the amount that you use on your *caution: mum joke
* If this is in your ‘HAVE to pay’ list, then it may be time to
approaching* ‘spendings’ card. But seriously, using a card
reconsider your priorities or shout me some.
makes it feel like you’re not actually spending real money. A
14 | 14 George | George Street Street Review Review
Bills...
“I like my money right where i can see it... hanging in my closet” - Carrie Bradshaw George Street Review | 15
BY MARK JOHNMAN
What do these words even mean? Arbitrage
The simultaneous purchase and sale of an asset in order to profit from a difference in the price. It is a trade that profits by exploiting price differences of identical or similar financial instruments on different markets or in different forms. Arbitrage exists as a result of market inefficiencies and provides a mechanism to ensure that prices do not deviate substantially from fair value for long periods of time.
Bait and Switch
would affect the purchased entity or the seller after the sale has been completed. In summary, due diligence can be described as a way of preventing unnecessary harm to either party involved in a transaction.
Future
A financial contract obligating the buyer to purchase an asset (or the seller to sell an asset), such as a physical commodity or a financial instrument, at a predetermined future date and price.
A dishonest marketing tactic in which a marketer advertises a very attractive price/rate/term that is really a teaser rate meant to attract customers. Once the customer comes into the store/office to inquire about the advertised price/rate (the “bait”), the advertiser will attempt to sell the customer a more expensive product (the “switch”).
Money Markets
Blue Chip
A fund operated by an investment firm that raises capital from shareholders to invest in stocks, bonds, options or money market securities. These funds offer investors the advantages of diversification and professional management.
A stock considered reliable with regard to dividend income and capital value.
Derivative
A security whose price is dependent upon or derived from one or more underlying assets. The derivative itself is merely a contract between two or more parties. Its value is determined by fluctuations in the underlying asset. The most common underlying assets are stocks, bonds, commodities, currencies, interest rates and market indexes. Examples of derivatives include futures contracts, forward contracts, options and swaps.
Dividend
A portion of a corporation’s assets paid to stockholders on a per-share basis. Preferred stock is supposed to pay a regular and prescribed amount. Common stock pays varying amounts when declared.
Due Diligence
Offers to purchase an asset are usually dependent on the results of due diligence analysis. This includes reviewing all financial records plus anything else deemed material to the sale. Sellers could also perform a due diligence analysis on the buyer. Items that may be considered are 16 | George Street Review the buyer’s ability to purchase, as well as other items that
A segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. The money market is used by participants as a means for borrowing and lending in the short term, from several days to just under a year.
Mutual Fund
Option
A contract that entitles the buyer to buy (call) or sell (put) a predetermined quantity of an underlying security for a specific period of time at a pre-established price. The primary difference between options and futures is that options give the holder the right to buy or sell the underlying asset at expiration, while the holder of a futures contract is obligated to fulfil the terms of his/her contract.
Security
A financial instrument that represents: an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option. A security is a fungible, negotiable financial instrument that represents some type of financial value. The company or entity that issues the security is known as the issuer.
The BIG Picture:
Changing Times for the Fed BY SALLY MOORE The Fed recently farewelled the longserving Ben Bernanke, who guided the central bank through the turbulent times of the GFC, and moved into a new era with the appointment of Janet Yellen as the new chair. Dr Yellen is the first woman to take this position, and boasts an impressive background in economics in both teaching and advisory positions, with the special focus of her academic writings being on the causes and implications of unemployment. Dr Yellen is notable not only for her broad approval from both domestic and world economic leaders, but also for her connection with the realities of the average American in today’s world, reflected in both her speeches and her writings: “when you’re unemployed for six months or a year, it is hard to qualify for a lease, so even the option of relocating to find a job is often off the table.” In the first few weeks of her new role, Dr Yellen has emphasised that we won’t see any drastic changes in the Fed’s policies at the present time, commenting that she “expect[s] a great deal of continuity in the [Fed’s]
approach to monetary policy”. She has spoken about her support for continuing quantitative easing- the buying of assets by the governmentas a way to stimulate growth in the economy. The US’s continuing problems of low inflation and high unemployment will be the issues that the Fed will target, with Dr Yellen being particularly concerned with the large number of Americans who have been long-term unemployed or who are working part time, when they would prefer to have full time positions. She observes that the labour market is still in the recovery period, stating in her prepared remarks for congress that “the unemployment rate is still well above levels that Federal Open Market Committee (FOMC) participants estimate is consistent with maximum sustainable employment.”
Dr Yellen was one of the few economists to forecast the housing and credit disasters of 2008, and so it is easy to see her interest in working towards better regulation in the banking and financial services industries.
Dr Yellen also flagged the regulatory reforms for the financial industry that the Fed plans to implement. These include the strengthening of leverage ratio standards for US Banks, as well as other financial stability risk management measures. Interestingly,
But with the guidance of a chair whom the President describes as being a proven leader with good judgment, the Fed might be able to meet the challenge.
Recently, the US economy has shown improvement in GDP growth and the labour market has continued to add jobs, though growth in this area remains low. Dr Yellen herself summed up the tasks she and her colleagues face in the coming months at the conclusion of her latest speech: “Since the financial crisis and the depths of the recession, substantial progress has been made in restoring the economy to health and in strengthening the financial system. Still, there is more to do.”
George George Street Street Review Review | 17 | 17
Grabbing the Baton
FINSIA’s insight into to the life of a Banking and Finance Lawyer Alicia Back, a member of the NSW Young Finance Professionals Committee (YFP) and a second-generation Finsia member, talks about her fast-paced but very fulfilling role as a Banking and Finance lawyer with Allens. Earlier this year Alicia was awarded the Finsia Prize for her outstanding performance in the Bachelor of Business — Banking major at UTS. What attracted you to banking and finance law, and what aspects of your current role do you find most interesting/fulfilling? The opportunity to combine the knowledge and skills I developed during my business degree with my law degree was what initially led me to pursue banking and finance law, and this is still a significant factor in my continued interest in this particular area of law. The constantly changing business environment, fast-paced and global nature of transactional work is also something that makes my role as a banking and finance lawyer at Allens incredibly challenging and fulfilling. How did you get involved in YFP and Finsia, and what have been the main benefits for you? My family recently reminded me that I used to read the Finsia publications my father received (having been a banker for over 30 years) whilst I was studying high school commerce and business studies subjects, so I guess that was my start with Finsia! While studying at UTS I was encouraged to sign up for a student membership by one of my lecturers and found the events and newsletters to be a great way to connect with the industry and enhance my understanding of what I was learning in class. Upon completing my Bachelor of Business, I was honoured to receive a prize sponsored by Finsia for my performance in the banking major. It was from there that I got to know some of the people at Finsia and then became involved in the Young 18 | 18 George | George Street Street Review Review
Finance Professionals Committee earlier this year. The committee has a great cross section of people from various parts of the financial services industry and getting to know them and what they do is something I really enjoy. I am also very much looking forward to getting involved in some of the initiatives that the committee has planned for the next 12 months. What have been your biggest career challenges and highlights so far? I am only in the early stages of my career, so no doubt there are endless challenges (and hopefully a few highlights) to come! So far though, I think that while the fast-paced nature of the transaction work I do is key to my motivation and interest, it can also be the biggest challenge. A significant highlight was completing my law honours thesis on a finance law topic and eventually having it published . Throughout the research and writing process I was lucky to be able to engage with some of the leading Australian lawyers in the area and the time they spent speaking with me was invaluable. What recommendations would you give to anyone interested in pursuing a career in banking and finance law? As simple as it sounds, I have found it very important to keep up to date with financial media and build strong professional relationships within the industry. I would suggest that anyone interested in banking and finance law try to get involved as early as possible. There are all sorts of industry publications to read and events you
can attend as a student; it can never hurt to meet people and ask questions about what they do and how they ended up in their current role. Mentoring is also something that has been of enormous value to me — both through formal mentoring programs and with informal mentors. I am very fortunate that I have ended up with a range of people from the financial services and legal industries, with far more experience than myself, who I can go to for guidance and insight. They make me think about how I am going to achieve my goals, and I can rely on them for some very honest, objective feedback. What are your main interests outside of work? What books/films/ shows have you enjoyed lately? I love art galleries and the theatre. I attended the Sydney moderns exhibition at the Art Gallery of NSW just recently, and the Francis Bacon exhibition earlier this year. I am also looking forward to seeing the Sydney Theatre Company’s production of Waiting for Godot in December. “This article was published in INFINANCE, the magazine for members of Finsia (Financial Services Institute of Australia), in December 2013. Finsia retains copyright in this article, which is reproduced with Finsia’s permission.”
2015 Asia Pacific Graduate Analyst Program Investment Banking Division, Sydney ABOUT BARCLAYS Barclays is on a journey. One that will give you many opportunities to make a positive impact across our business. We have a 300-year-strong foundation on which to build. Our status as one of the world’s major financial services providers gives us weight and momentum. Our expertise across personal banking, credit cards, corporate and investment banking, and wealth and investment management offers true variety. And in over 50 countries around the world, our 140,000 people are coming together to set examples of accountability, collaboration, good citizenship and, above all, pride in the work we do. All guided by a strong set of values: respect, integrity, service, excellence and stewardship. This future is yours. And it all starts today. THE FULL-TIME GRADUATE PROGRAM The Barclays Full-time Graduate Program begins with the Initial Training Program (ITP), which takes place either in London or New York. This provides you with an overview of the firm, its business and its products, as well as introducing you to the work you will be doing in your specific role. WHAT WILL MY ROLE BE AS AN INVESTMENT BANKING ANALYST? Our Analysts take on a high profile role and early responsibility in a highly competitive industry. As an Investment Banking Analyst, you are expected to execute a variety of roles such as performing financial valuation analysis, building and applying financial models, preparing presentation materials, participating in client meetings, conducting industry research, and executing transactions from start to closing. Your supporting role is the cornerstone of our success in providing sound client solutions and advice. Currently Available Locations: Sydney
George Street Review | 19
New Year, New You The Pant Suit vs The Skirt Suit BY JESSICA HOWE
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The Skirt Suit vs The Pantsuit debate is a contentious and confusing issue for many women.It’s a personal preference that needs to be balanced with what’s social norms, industry norms, personal taste, and just a hint of rebellion (everyone needs to stand out, right?). No wonder the young ladies of today’s business world are confused! As Lily Allen so plainly states in her new song, it’s hard out here for a b**ch! But do the pants really beat the skirt when it comes to the art of power dressing? …Rarely. Despite Hilary Clinton’s prominent push for the power-playing pantsuit, recent research suggests that a masculine outfit won’t necessarily guarantee a good first impression on your co-workers, or your new boss. A study conducted at the University of Hertforshire, England, showed images of women in navy pantsuits and skirt suits with their faces blurred. 300 people rated these women on their confidence, success, trustworthiness, salary and flexibility. The participants were only given a few seconds to make their judgments, but the results of the study indicated that skirts make a more positive first impression.
This contradicts previous research that suggested women should dress more like men if they want to gain positions of power within predominantly male environments. Some deem these results concerning. A portion of women are now under the misguided belief that revealing clothes will get you further than brains, skill, passion and a pantsuit. I don’t believe this is the case. The study didn’t reveal that women should wear skirts that barely cover our lacy underwear. It demonstrated that women now have a greater choice when it comes to power dressing in the business industry. If anything, I think it shows our society has come a long way from believing women should be nothing but bare-foot and pregnant. We have now become a society that can respect a woman, no matter what clothes she has on (…almost). So next time you want to look powerful and confident in an interview, but your heels just don’t match that pantsuit… Don’t stress. You can pull out the business skirt, or dress.
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Do we wear a skirt to show we can balance our femininity with our professionalism? Or should we go with the symbolic pantsuit from past decades, designed to break down the ‘boundaries’ of feminism?
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I’ve often spent far too long in front of the mirror trying to decide whether to wear pants or a skirt to my interview. Do we wear a skirt to show we can balance our femininity with our professionalism? Or should we go with the symbolic pantsuit from past decades, designed to break down the ‘boundaries’ of feminism?
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Japan Goes For Gold BY JOY DU With the current 2014 Winter Olympics in Sochi, Japan has gone for gold, winning their first gold medal at the games. In addition, Japan has secured their position as the host of the 2020 Summer Olympics, which will create many economic opportunities for the nation. Being awarded the 2020 Olympics will be good for sentiment and will have some real economic effects in due course. However, questions are often posed as to whether the Olympics actually help trade. The Olympics have been proven beneficial for tourism and travel industries. In fact, the ‘Olympian effect’ on trade has shown that hosting the Olympics has a positive impact on national imports. This effect on trade is often over 20% higher for countries that have hosted the Olympics. Why is hosting a mega-event like the Olympics associated with extra trade? It’s not because the Olympics hosts greet more tourists or appear on TV screens 22 | George Street Review for a few weeks, but rather, it is linked
to trade liberalisation. For example, two months after Beijing was awarded the right to host the 2008 Summer Olympic Games, China successfully concluded negotiations with the World Trade Organisation, the file:///C:/Users/Brigette/ Downloads/Chair%27s%20Address(3). pdf reby formalising its commitment to trade liberalisation. While Japan is currently in a large deficit, the news of the successful Olympics bid has already boosted construction stocks on the anticipation of generous contracts being awarded. Additionally, the construction and retail benefits of the Olympics should be a further boost to Abenomics and its aim to reflate the economy. Abenomics is a term coined to describe the policies being pushed through by Japan’s prime minister, Shinzo Abe. The three policies which he is backing are bold monetary relaxation, flexible fiscal stimulus and a growth strategy to revive the private sector. These policies
have had a much more positive impact than expected. The Olympic bid decision should further improve confidence among the Japanese and the ‘feel good’ factor will likely make Prime Minister Abe even more popular. It will also give increased force to Abe’s third arrow reform policy, further driving his private finance initiative and public private partnership (PPP) funding, according to Simon Somerville, manager of the Jupiter Japan Income Fund. Some optimistic commentators have already termed the Olympics Abe’s fourth arrow, believing that it will bring greater prosperity to Japan. Despite Japan being the most indebted developed country in the world, the market is still cheap versus long term-history, although it is not as cheap as it was at the start of the year. If you are looking to invest in Japan, it all depends on whether you think that the Olympic boost can ensure gold for Japan’s economy and for your back pocket.
George’s Next Big Gamble? BY ANDREW MCNAUGHT Recently, Jordan Belfort has received the limelight for his spectacular rise and fall, but one man who has wielded real financial and political influence over the past three decades is Mr George Soros. He’s currently sitting at 30th on Forbes’ list of billionaires at a comfortable $19.2bn. He’s been the bane of many governments and his most famous exploits usually involve him shorting an overvalued currency and making millions, or billions. In 1992 he earned the nickname “The Man Who Broke the Bank of England” on a day that is now referred to as the Black Wednesday Currency Crisis. Talk about a legacy. Britain had a policy of ensuring a high exchange rate against the German mark but domestically it suffered from high inflation. Soros was the leading currency speculator who saw the flaws in this policy and began shorting the British pound. Once the electronic herds started rolling on and following Soros’ lead, it was too late for the government and the currency tanked.
The cost to the British government was estimated at £3.3bn whilst Soros took home a clean £1bn. Not bad for a day at the office. George Soros has also predicted (or gambled, call it what you will) recent falls in the Australian Dollar against the American Dollar. He recognised that it was overvalued and even just him publically announcing his opinion caused speculators to start shorting the dollar. From this side venture he was estimated to have earned $60 million. Not quite a Black Wednesday but hardly pocket change either. It is now believed that George is planning his next big coup. His target is none other than world superpower China. George predicts that China is the next bubble to burst. It is no secret that China sources a vast number of its funds through the near unregulated world of shadow banking. JPMorgan recently estimated that these shadow banks are responsible for a worrying 69% of China’s GDP. Whilst
these are at dangerously high levels, the real cause of concern is that China’s leader, Xi Jingping, is insisting that GDP continues to grow at levels beyond 7% per annum. Many economists are urging China to pursue restructuring rather than growth as China can only achieve this exborbitant growth by increasing its exposure to Shadow banking. This pursuit of growth is where George believes that China will undo itself like the Western World in the Global Financial Crisis. History seems to be on George’s side as he has a knack for getting it right. However, this gamble is one that may surprise many people but it could be one for the ages and see George Soros sail off into the sunset $20bn richer.
George Soros Fast Facts ... Born in Budapest, Hungary, on August 12, 1930, George Soros fled the Nazis in the mid-1940s and moved to New York City in 1956, where he entered a life of finance. He began his renowned philanthropic efforts in 1979, and as of 2012 his lifetime giving amounts to more than $7 billion via his Open Society Foundations. Soros became well known during the cold war for funding dissident groups behind the iron curtain and then providing hundreds of millions of dollars in aid to those countries. In 1992 Soros bet $10 billion against the value of the British pound. After the currency collapse, known as “Black Wednesday,” Soros makes up to $1 billion and becomes known as the man who “broke the Bank of England” by the London press. He has written 12 books on subjects ranging from the war on terror to global capitalism. Last year he was named No 3o in Forbes Billionaire List. George Street Review | 23 George Street RevieW | 23
Grad Season Your guide to
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Final year students the time is now! Contact the CDC Today.
P: 07 5595 3386 | E: cdc@bond.edu.au | FB: www.facebook.com/bondcdc Graduate recruitment season is during this semester and this is when employers source, entice and hopefully secure final year students from universities nationwide for their graduate programs. Graduate programs are offered by a majority of the top tier multi-national employers across banking, finance, accounting, construction, government (local, state and federal), FMCG, transport, logistics and the list goes on and on. Companies recruit students 12 months in advance and students commence the following year. If you will graduate by the end of this year, it’s time to start considering your options and with careful planning and research, an awesome application and confidence during the recruitment rounds, you might just end up working for the employer of your choice.
What’s on offer for Commerce students? Whether you see your future career path including amassing capital for major transactions (investment banks) or leading a team to advise clients on business strategy (management consultants) or analysing financial management statements for a large conglomerate, there is lots to consider. Most graduate programs offer an accounting or finance stream and the challenge will be to narrow down your choices.
The “well-rounded” graduate
The well rounded graduate is a term that can be very overused. Basically it means that employers are seeking graduates who have a variety of accomplishments during their studies. These include: • Demonstrating leadership through on or off campus activities • Sporting achievements • Academic results • Extracurricular activities such as volunteering • Overseas travel • Part time work or internships Whilst graduate employers do place emphasis on academic results, most
say that this is not the most important thing they look for when recruiting. Instead, they look for the other experiences that build upon your studies and results. To extend your employability and make you more appealing to an employer, activities such as industry related work experience, leadership roles and overseas travel can all help increase your chances of becoming the “well-rounded” graduate.
Second/Final Interview The second interview will be with a senior member of the organisation and may be a panel interview with a number of people. If you have applied to a particular business area, then mostly likely a Senior Manager or Partner from the business area will be involved in the interview. You may have a third and final interview depending upon the decision making process of the senior team members.
What should I expect during the recruitment process?
Tips for nailing grad season
Online Application All applications will start with an online application. Some employers will ask you to complete forms addressing selection criteria and others will ask you to upload a cover letter, resume and transcript. Online Test Psychometric testing is very common practice for recruiters and is administered online under strict time restrictions. You may encounter numeric and/or reasoning questions and it is important that you answer these accurately and honestly. There are websites that can assist you with practicing this stage of the process. For more information about testing, see http://www.shldirect.com/ en. First Interview The first interview will most likely be with a graduate recruiter from the organisation and will be either a phone or a video interview. Both will generally take 15 minutes and are used to confirm a few details on your resume and check your communication style along with your interest and knowledge in the role. For more information about video interviews, see http://www.vieple.com/. Assessment Centre Assessment centres are an opportunity for an employer to observe you in a team setting, where you can demonstrate will set a task with a time limit and will look for, amongst other things, problem solving, leadership, collaboration, idea generation and time management skills.
• Research employers of choice and identify the business areas that you are applying too. Keep track of application opening and closing dates and who you are applying to. • Don’t leave your application to the last minute – check out the online application process well before the closing dates. • See the Career Development Centre to assist you with tailoring your applications and addressing selection criteria, as well as advice on the recruitment process and to schedule a mock interview. • Attend all of the employer events on campus.
EVENTS ON CAMPUS THIS SEMESTER: The Big 4 Roadshow EY, KPMG, Deloitte, PwC 11 March @ 3pm in the Princeton Room BDO Australia (Accounting students) 6 March @ 11am in the CDC Seminar Room J.P. Morgan 13 March @ 2pm in the CDC Seminar Room Careers Fair 27 March @ 4:30pm in the George Street Review Sports Hall | 25
WANT TO PLAY THE STOCK MARKET?
THE BOND INVESTMENT GROUP STOCK TRADING COMPETITION IS COMING...
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