2021/2022 UNSW FINANCE AND BANKING SOCIETY
CAREERS GUIDE
ACKNOWLEDGEMENTS CO-PRESIDENTS
SUBCOMMITTEE
Merrynal Anthony
Salena Bhalerao
Emily Weng
Chrystal Mao
VICE PRESIDENT
Kevin Wu
(OPERATIONS) Rishi Chhugani
SPONSORSHIP DIRECTORS
Jeremy Wang Janice Low Vikas Arkalgud Rebecca Li Wilson Yang
Shane Mammen
Matthew Sulistyo
Alex Cai
Avaneesh Shrestha
PUBLICATIONS DIRECTORS
Andrew Park Lily Zhang
Katherine Mo Mimi Zhou Alex Wong Tom Morton Cindy Lam Mandy Zhou
MARKETING DIRECTORS Kelly Liang Jessica Qiao
EDUCATION DIRECTORS Vedant Shah Bryan Gunawan
Carl Braganza Oliver Ryan
SPECIAL THANKS TO Victor Rodriguez Christina Manonian Hart Lestari William Lee Lauren Davies Tony Chen Nahum Adeel Samantha Chen Jacqueline Liu
SPONSORS Special acknowledgements to our sponsors for their ongoing support throughout the year
HSBC RB Franklin Templeton TMGM Bain & Company Neu Capital Greenstone Partners AMP Capital Deustche Bank Longreach Alternatives Bloomberg Pottinger FPA Flow Traders CFA Society Lendlease Bridgestreet Capital Challenger Limited
PRESIDENTS' ADDRESS
As
we
approach
the
end
of
another
towards your chosen career path. We seek to
challenging year of online learning, we would
upskill you through our many workshops and
like to warmly acquaint you with the UNSW
professional
Finance
UNSW experience – one that equips you with
and
Banking
Society
(FINSOC).
events
offer
you
seasoned
technical skills to take the reigns and plough
we
are
enthralled
to
have you with us. Our goal is to guide you through
the
sea
of
job
social
vital
the
year,
professional,
the
Whether you are fresh and keen first year or a final
required
to
and
forward into the horizon that is your future.
applications,
interviews and their respective hard skills as
Hence, we are proud to present to you our
you
inaugural 2021 UNSW FINSOC Careers Guide
dive
deeper
into
the
dynamic
and
multifaceted world of corporate finance.
which
features
the
major
financial
institutions
Regardless of the many adversities you would
landing
face
overview
as
a
university
student,
you
would
your of
dream the
recruitment
role,
different
to a
process
assist
at
you
in
comprehensive
finance
electives
always have the support of UNSW FINSOC
offered at UNSW Business School as well as
every step of the way. Our mission as the
our
constituent Finance and Banking Society, is
this guide is able to provide value to your
to push you to your boundaries beyond the
career aspirations and we wish you well in all
scope
your
of
the
classroom
and
embrace
adversity as they open doors of opportunity
sponsoring
company
professional
profiles.
endeavours
remainder of 2021.
Emily Weng & Anthony Merrynal
We
for
hope
the
VICE-PRESIDENT OPERATIONS' ADDRESS Thank you for taking the time to read UNSW
student. Further, if you find yourself straying
Finance
from
and
Banking
Society’s
first-ever
a
career
in
finance
and
down
a
careers guide developed by our Publications,
different path, you can still refer to this guide
Sponsorships,
as many of the recruitment processes remain
Educations,
and
Marketing
team. This guide was made with the purpose of
helping
themselves
finance for
the
students
variety
of
similar.
prepare
application
processes that they may undergo.
A parting thought I would like to leave you with is – write your own story. Remember that there is no set path to success, and everyone
A
career
in
finance
entails
a
multitude
of
has to manifest their own destiny. Do not feel
unique career progressions you can take. This
intimidated
guide
completed several internships and seem like
will
career
explain
paths
you
the can
number take
as
of
different
you
if
those
around
you
have
decide
they have everything figured out. Do not feel
what your goals are. As we emerge from the
disheartened by rejections. It is okay to feel
COVID-19 pandemic in 2022, companies will
like you are lost and falling behind. It is okay
be gearing up to return to larger recruitment
to change your mind. Stay resilient, keep an
intakes.
open mind, and you will find the right path for yourself.
Whether
you
are
approaching
your
Take
opportunity.
every
Educate
failure
as
yourself,
a
dig
learning deep
to
penultimate or final year in 2022, this guide
find out your own goals, work hard to achieve
will
them, and stick to your gut. Things will work
act
as
a
critical
preparatory
tool
providing you with a solid understanding of
out, trust me.
what you can expect. If you are in your prepenultimate years, this guide will shed light
All in all, I would like to wish you all the very
on the potentially daunting rumours you have
best with your futures, and I hope that this
heard about recruitment processes and will
careers guide will aid you in achieving your
hopefully
goals.
inspire
you
about
the
countless
opportunities available to you as a finance
Rishi Chhugani
contents
01
LAUNCHING YOUR CAREER
01
Connecting your Linkedin
Perfecting your Cover Letter
Polishing your CV
Acing the Interview
02
04
08
10
02
FINANCE COURSE BREAKDOWNS BREAKDOWN
14
Core Courses
Electives
Work Integrated Learning
Subject Testimonials
15
15
16
17
03
FINANCE FIRM PROFILES Investment Management
Asset Management
Wealth Management
Private Equity
Sales & Trading
Investment Banking
Financial Planning & Analysis (FP&A)
Venture Capital
Capital Markets
Equity Research
Treasury
Risk Management
Institutional Banking
Brokerage
21 22
24
26
28
30
32
34
36
38
40
42
44
46
48
04
INSIGHTS FROM INDUSTRY PROFESSIONALS
50
Victor Rodriguez
Christina Manonian
Hart Lestari
William Lee
Lauren Davies
51
53
55
57
59
05
GRADUATE AND STUDENT TESTIMONIALS
61
Nahum Adeel
Samantha Chen
Tony Chen
Jacqueline Liu
62
63
64
65
Launc
your c
ching
career
01
CONNECTING YOUR LINKEDIN Connect Now
More
About Linkedin LinkedIn is the largest business-to-business social network in the world with over 756 million users and 31 million monthly active users (as at 6 June 2021)! With 87% of recruiters using LinkedIn, there has never been a better time to join this professional network and get a head start on your career as an ambitious student.
Your LinkedIn profile is your online resume.
Profile Picture Your profile picture is the most
Making Connections
striking feature of your profile and
If you want to improve your
what potential connections or
chance of getting a connection
recruiters will see first.
request accepted, send a note
A profile with a professional photo
to accompany the connection
will, on average, get 14x more views
request!
than other profiles so make sure you
Compliment your prospective connection - but make sure it is
have one!
When uploading your profile picture, make sure:
specific and genuine! e.g.
Face is clearly visible
Background is neutral
“I
thoroughly
Facing the camera
Appropriate attire
your
article
enjoyed
on
the
reading
impacts
of
inflation in Venezuela”
Experience Use the ‘Experiences’ section to expand upon your key achievements in jobs/activities. A good way of keeping it succinct and relevant is to give quantifiable business impact if you can. Using action words similar to what you would have in your resume helps. However, you would generally go beyond your resume and include more detail. For example “The new strategy I was in charge of implementing led to a 12% decrease in overhead expenses over 12 months”.
Find common ground Something about the person that both of you can relate to. Perhaps you are both FINSOC alumnis, are interested in the same career path, or even support the same soccer team!
Never ask for a job out of the blue - If you want to have a coffee chat, make sure to properly introduce yourself and respect the other person’s time. After all, you are looking to build long-lasting professional connections – not one-off referrals.
02
LinkedIn Tips Sort
by:
Top
...
UNSW Finance and Banking Society 1m
Background banner –
Your
background
banner
should
be
simple
and
relevant.
For
example, if you are looking to work in the corporate sphere, you can have the banner image contain a few city skyscrapers.
Headline – The headline is the part beneath your profile picture and name. It should clearly state your current job title. If you are not currently working because of study, you may want to put a title you currently hold in a university society. As with everything on LinkedIn, keep it clear and concise!
About –
For your ‘About’ section, avoid the temptation to use a lot of fluffy adjectives and
buzzwords. If you are a student without a job, you can use this as an opportunity to outline what you are studying and the key career path/s you are interested in.
Custom URL – Click on the pencil icon towards the bottom right of your background banner and scroll to the bottom to make your very own custom URL. Copy this link into your resume to make finding and selecting you easier for recruiters.
External media – this
by
clicking
Remember that you can add external media to your profile! You can do
on
the
pencil
icon
on
the
top
right-hand
side
of
the
‘Experience’
or
‘Education’ section and scroll to the bottom ‘Media’ section. Examples of media you can attach include an academic article you have published, educational video content you have created, your winning case competition slides etc.
IMPORTANT:
If you do not want other LinkedIn users to know you have been viewing their
→
→
profile, you need to make sure your profile viewing option has been set to ‘Anonymous LinkedIn Member’. This can be done by going to 'Settings & Privacy
Visibility
Profile
viewing options' and selecting the ‘Anonymous LinkedIn Member’ option.
03
PERFECTING YOUR
COVER LETTER Purpose of the Cover Letter The cover letter serves as an introduction to your overall application and provides the
skills, qualities and experiences you can bring to name implies, your cover letter is read before your
initial platform for you to market the the job and the company. As the
resume
- hence, it is essential that your cover letter captivates the recruiter’s interest
and incentivises them to look at your resume.
individuality to come through. Your choice of wording gives express your personality and style of communication in a way
The cover letter allows your you the opportunity to
that a resume can not. A great cover letter should not just repeat your resume in a contracted form, but really demonstrate to the employer the
motivations you possess for
the job and the organisation.
Although there is no single correct method to your tone and choice of words, it is crucial to provide the right information required to market yourself.
Employers want to see that: You have researched the job and their organisation You will fit well with their organisational culture You understand and are motivated to work towards their values
04
Recommended Structure Opening Paragraph: Brief Introduction
This section should be kept relatively
Your academic background
short (recommended 1-2 sentences).
Rationale for writing the letter The specific role/service line in which you
Make sure to mention:
are applying for at the company
Body Paragraph 1: Demonstrate your motivation
In some countries, the cover letter is referred to as a
motivation”.
As
this
name
suggests,
it
is
“motivational letter”
integral
that
you
use
the
or a
cover
“letter of letter
to
demonstrate what motivates you to apply.
Questions to consider are: What attracts you to the company? What attracts you to the particular position/type of work/service line? This is the perfect place for you to demonstrate your knowledge of the position and research into the organisation. It is not sufficient to just say:
“I would like to work at firm XYZ because it works on high profile deals.” Your
motivation
needs
to
be
more
personalised.
For
example,
if
a
firm
has
a
strong
international presence, you could say something along the lines of:
“Cross-border M&A deals are especially captivating to me because I have explored the implications of globalisation on businesses through XY extra-curricular activity/subject/work experience. Given firm A’s international focus and renowned reputation for cross-border work, evinced by deal AB (referencing a deal is helpful but not necessary), I am excited to begin my [career] at the firm."
Note If you reference a deal in your cover letter, be prepared to talk about it in your interview. While you don’t need to know all the details, make sure you know the general information surrounding it.
05
Recommended Structure (Continued) Body Paragraph 2: Demonstrate your suitability
After communicating your interest in the job, demonstrate to the recruiter why you are a good choice for the position.
Questions to consider are: What qualities/skills make you a strong candidate for this particular position? What situations/experiences do you possess which serve as strong evidence for the aforementioned attributes?
As noted before, this section is not just a rehash of your resume. Rather, you need to identify which skill sets/experience are most relevant to the position you are applying for. A good starting point to determine what the firm is looking for in candidates is the selection criteria.
Body Paragraph 3 (Optional): Pro-bono and D&I initiatives
If you have space and would like to talk about the firm’s pro-bono or D&I initiatives, this paragraph can be included to show that you are a cultural fit for the firm. You can also highlight any volunteering experience that you have here and why they are similar to what the firm is passionate about. However, remember that this paragraph is only relevant if you have space.
Closing Paragraph: Ending on a hopeful and positive note
Make sure to express gratitude and thank the recruiter for spending time to read and consider
your
application.
Also
take
this
space
to
reiterate
your
interest
and
open
opportunities for further contact.
Additional Tips If you have attended any events related to the company, the cover letter is a good place for you to mention this For example, if you had attended a networking event and listened to a speech from a senior-level employee, do not hesitate to mention this, or even name-drop the particular individual in your letter Make sure to use fonts which are easy to read - Times New Roman, Calibri, Arial etc.
06
COVER LETTER TEMPLATE Name Address (optional) City, Post Code (optional) Phone Number Email Address XYZ Group 50 Martin Place Sydney NSW 2000
17 May 2021
Re: Application for [Program] 2021/2022 Dear XYZ Recruitment Team,
Opening Paragraph
Body Paragraph(s)
Closing Paragraph
Sincerely, First Name Surname
07
POLISHING YOUR CV The purpose of your resume is to compel the recruitment manager to invite you to the next round of the application process by communicating to them that you have the skills and experience required for the position. To ensure that your resume introduces yourself in the best light, below are some tips before you send out your next application.
COMPONENTS OF A RESUME HEADINGS Print
your
name
and
contact
information
including
mobile
number,
and
LinkedIn.
Avoid
including an image of yourself as this may introduce bias.
SUMMARY SENTENCE A summary statement concisely summarises your experiences, motivations and distinctive traits which serves to efficiently convey the key points of your resume to the recruiter This is optional and usually not necessary if the application requires a cover letter
EDUCATION Briefly state your educational background along with any educational achievements you have accomplished. Key points to include: Tertiary education: University, degree and majors you are studying, expected graduation date Academic achievements: WAM, scholarships, Dean’s List, courses you have achieved within the top 5-10% of the course High school education: School, ATAR, academic or leadership awards
PROFESSIONAL EXPERIENCE Outline your prior work experience and the responsibilities and accomplishments you achieved in these roles Stand out by providing specific and quantifiable examples which have positive results and highlight characteristics such as your soft/technical skills and proactivity. Some examples could include:
"Exceeded
daily sales targets of $XX by consistently prioritising customer service and
building strong team rapport, averaging customer service rating of XX"
"Performed analytical procedures for a diverse array of industries including XX, XX..." LEADERSHIP AND VOLUNTEERING List experiences outside of your studies and work which further build on key traits which align with
the
role
you
are
applying
for.
Here,
relevant
experiences
could
range
from
student
societies to passion projects you may have had. Some examples include:
"Proactively
formed partnerships with industry senior leaders and sponsors to deliver the
annual XX Event for XX event attendees"
"Placed in the finals of the XX Case Competition by delivering a recommendation aimed at solving XX"
08
GUIDELINES FOR CONSTRUCTING YOUR RESUME
1
CONTENT Ensure that the responsibilities you include
highlight your positive qualities
through appropriate examples tailored to the requirements outlined in the role description. Keep in mind that you will need to be prepared to expand on any points you include if raised in an interview To provide context to your experiences, each role you include the dates during which they were relevant as well as the geographical location if applicable
2
WRITING STYLE
Your writing style should be
unbiased whilst also concise and quantifiable.
Some guidelines to follow: Avoid statements beginning with “I” and replace these with action verbs instead Denote past experiences in past tense and current roles in present tense Avoid abbreviations Where possible, instead of conveying your skills through responsibilities you had in a role, demonstrate these skills through specific results you achieved
3
FORMAT AND LAYOUT The format and layout of your resume should be
consistent and easily scannable. The
standard approach should include: List experiences in chronological order with your most recent experience at the top Devote more space to more relevant and more recent roles Place the role before the organisation. E.g. Audit & Assurance Intern: KPMG Australia 1-2 pages. Standard font Appropriate margins and paragraph spacing to avoid cramping the page with text Consistency between font sizes, bullet point styles and colours
4
ADDITIONAL TIPS
Have someone else review your resume. Whether it be a friend or the UNSW Resume Checker, simple mistakes such as grammatical errors can be avoided. Maintain a master copy resume with all your experiences without the limitations of length and tailor this for each application Maintain consistency in formatting and font across your resume and cover letter While optional, additional components of your resume could be Interests and Skills. Referees can be provided upon request
09
ACING THE INTERVIEW RESEARCH ON COMPANY Understand what makes the company unique Companies tend to have certain strengths that set them apart from other companies. This could be through strength in a particular sector/geography, a unique investment philosophy, technological innovation, or social and ESG initiatives Familiarise yourself with the different groups of the business Core values and culture: Learn about the firm's culture and what key values they emphasise Key events, deals and transactions: Understanding recent key events that have involved the firm is beneficial. Knowing deals and transactions done by the firm is a must if you are applying for investment banking How to find this information: Company website Talking to company employees at networking events or through linkedin News articles
RESEARCH ON ROLE Read the job description carefully Understand the day-to-day tasks of the role or at least the high-level overview of what your role entails Understand the key skills and qualities required to do the role successfully. Most finance roles typically look for basic proficiency in Excel, PowerPoint and Word, strong communication and teamwork skills, an analytical mindset, and ability to handle pressure During your interview, speak to how your background and qualities align with the qualities from the job description to maximise your chances of success
RESEARCH ON INDUSTRY Understand how the industry has changed over the past few years, and how it might change in the future. Consider: Has the market size for this industry increased or decreased, and why? What are the key trends of this industry, and what are the key factors influencing these trends? How has COVID-19 impacted this industry? What are the key threats and challenges facing the industry?
10
STAR INTERVIEW METHOD The STAR method is a technique used to answer behavioural interview questions in a structured manner.
Situation Explain the situation. What was the project, challenge or event you were faced with?
Task Identify what your task was. What was your responsibility in this situation?
Action Describe the action you took. What did you do and what were the skills you used?
Result Describe the result. What was the outcome of your actions? Can the outcome be quantifiably measured?
Reflection Share your reflection. What did you learn from the experience? How do the skills you portrayed link to the job you have applied for?
ADDITIONAL TIPS
Aim for an answer of roughly 1-2 minutes Be direct and straight to the point Make sure to not sound rehearsed and speak naturally The best way to achieve this is to prepare your answers with rough guidelines and dot points of what you want to say, and not trying to say your answer word-for-word
11
TYPES OF INTERVIEW QUESTIONS PERSONAL & RESUME Almost all interviews will begin with the interviewer asking to know more about you; possibly in the form of
“Tell me about yourself”, or “Walk me through your resume”. This is where you need to
tell your interviewer about your experiences, the skills you have gained, and how this has led you to applying for this firm. This is the key opportunity to link together the skills you have gained with your passion for this role and the company you are applying for.
BEHAVIOURALS
EDUCATION
Behavioural questions are designed to
Employers may be interested in where you
understand how an interviewee will act in
passion stems from and how the knowledge
specific scenarios based on past
and skills you have gained from your degree
experiences. A good approach to most of
will help you succeed in the job you are
these questions is using the STAR method.
applying for.
Commonly asked questions:
Commonly asked questions:
Tell me about a time when you were
Why do you study your degree?
faced with conflict whilst working in a
What are your least and most favourite
team
subjects?
Describe a time when you showed resilience Tell me about a time you delivered value to a client or customer Describe a situation where you had to adapt to an unexpected change
WORK EXPERIENCE
TECHNICALS It is important to prepare for technical questions if you are applying for investment banking, financial markets, or investment management roles. The number of questions and their difficulty varies widely. Therefore, it
Interviewers are interested in understanding
is a good idea to research or ask the HR
what skills and experiences you have gained
representative if there will be an emphasis
from past work experiences, and how you
on technical questions.
developed from them. Types of technical questions: Commonly asked questions:
Deals based questions
What were your responsibilities in your
Markets based questions
role as XYZ?
Accounting
What were the key challenges you faced
Valuation
in your role as XYZ?
Financial Modelling
12
QUESTIONS FOR THE INTERVIEWER Make sure to ask questions to the interviewer at the end of your interview, as the interview is also regarded as an opportunity for you to get to know them. Asking questions will show you are interested in the role and you want to learn more about the company.
Prepare
2-3 questions in advance of your interview
Tailor your questions to the person who is interviewing you. For example, your interviewer might have mentioned that they have significant experience in a particular sector or they have worked on a project that aligns with your interests. Asking questions about these is beneficial as it shows you have good listening skills, in addition to making the conversation more natural and personal
Examples What are the three most important attributes of a successful candidate? You mentioned that whilst working here, you gained significant experience in [Sector]. As this is a sector I am interested in, I would like to know more about the projects you were involved in What’s your favourite thing about working at this company?
13
finance breakd
course downs 14
Majoring in
FINANCE
Core Courses
The Bachelor of Commerce degree has undergone a few changes hence the course roadmap will depend on the stage of your degree. The below guide is split into
COMM1180
Value Creation
core courses and
electives. Note that students must take a minimum of 48 UOC for the completion of this major. 30 UOC is
FINS1612
Capital Markets and Institutions
taken up by the core courses. The remaining 18 UOC are filled with
FINS2613
electives.
Intermediate Business Finance
Asset Management
FINS2624
FINS3640
Investment Management Modelling
Portfolio Management
FINS3616
FINS3641
Securities Analysis and Valuation
FINS3625
International Business Finance
Trading FINS3666
Applied Corporate Finance
Trading and Market Making
FINS3635
FINS3635
Options, Futures and Risk
Options, Futures and Risk
Management
Management
FINS3644
FINS3636
Sustainable and Responsible Investment
Interest Rate Risk Management
FINS2643
FINS3645
Wealth Management and Client
Financial Market Data Design and
Engagement
Analysis
15
Other ACCT3563
Corporate Finance FINS3625
Issues in Financial Reporting Analysis
Applied Corporate Finance
FINS3623
FINS3631 International Corporate
Venture Model
Governance
FINS3630
FINS3626 Personal Risk, Insurance and Superannuation for Financial Planning
Bank Financial Management
FINS3640
FINS3633
Real Estate Finance
Investment Management Modelling
FINS3634
FINS3641
Credit Analysis and Lending
Securities Analysis and Valuation
WIL
FINS3646
Toolkit for Finance
COMM2222 Industry Experience Program
FINS3650
International Banking
COMM3020 Global Business Practicum
FINS3637 Wealth Management Advice and
COMM3030
Ethics Social Entrepreneurship Practicum
FINS3647
Bitcoin and Decentralised Finance
COMM3101 Industry Experience Placement 1
FINS3655
Behavioural Finance
COMM3202 Industry Experience Placement 2
16
SUBJECT TESTIMONIALS FINS1612 - Capital Markets and Institutions What was the
best part about the subject?
Taking it alongside
sets up the basics of finance.
FINS1613, it
Probably more applicable than 1613 as well
Gaining a solid understanding of the financial markets and
equations for personal finance
What about the
Mostly a
rote-learning
course which means your effort directly correlates with your results
worst part about the subject?
Tutor was upset about losing his banking job at Goldman Sachs during the GFC in 2007. It was an awkward first tutorial
First grasping some of the more
complex topics
especially with derivatives
The content can be
boring
at times
and options
Advice for future students
Nothing in particular, just
don't underestimate the finance exam for any fins
Take advantage of university resources like
PASS classes
It's worthwhile spending your time studying during
or FINSOC's very own
this course as it is the
courses. This one was
revision workshops for
surprisingly hard
harder topics
easiest Finance core course you will do
Tim Xue Commerce/ Computer Science
Daniel Xu Commerce/ Law
Alex Wong Commerce/ Law
17
SUBJECT TESTIMONIALS FINS1613/FINS2613 - Intermediate Business Finance best part about the subject?
What was the
If you like the basic theory of maths, this one is for you. You'll spend a lot of time looking at how to use
important financial concepts that Learning
will remain very relevant in the future as a
NPV and discounted cash flows
professional
What about the
A
fun lecturer who tries
very hard to relate course content to his very original dad jokes
worst part about the subject?
Worst part is that it wasn't
The topics on cash flow
very memorable. I don't
and dividends/capital
think it's a terrible course
raising can be
quite
tbh, but you will see all of
challenging to digest
this theory again in later
without enough practice
courses
and studying
With exams being online, be careful when transcribing numbers from your calculator/excel onto Moodle
Advice for future students
Take advantage of the This is obviously
essential. Remember how to use NPV properly and you'll be fine
university's resources for topics such as CFs. These include the weekly
PASS
classes and FINSOC's
revision workshops
Tim Xue Commerce/ Computer Science
Daniel Xu Commerce/ Law
A fundamentally simple course, if you are updated with most of the lectures and tutorial work, this course is easy to do well in
Rebecca Leigh Commerce (International)
18
SUBJECT TESTIMONIALS FINS2624 - Portfolio Management What was the
best part about the subject?
The technical concepts were
easy to grasp and very practical in application. Really sets you up for the rest of your finance degree
From the start to the end the content is useful in terms of personal portfolio management, anything you will see in a finance role and everything in between
This course was one of the
best courses in my finance degree for my WAM. It's very much a retread of previous courses in finance, and my tutor was a gun (funny mohawk man)
What about the
worst part about the subject?
It was all quite technical, if
The last two weeks of content;
you want to learn more
the Black-Scholes method
about how portfolio
and option parity pricing. The
managers use these concepts in the real world
do your own research.
you will have to
textbook has poor practice material, and you don't have
not really learning much new that you
You're
couldn't have learnt from FINS1612 or FINS1613. Also, the labs were bland and I
much time before the exam to
don't remember anything in
perfect the topics.
them.
Advice for future students
It requires
consistent effort.
Do the problem sets,
Know all the formulas
participate in tutorials and
and you'll smash it
study regularly. It's a fun course and probably the most useful out of the mandatory subjects.
Vedant Shah Actuarial Studies/ Commerce
James Layland Commerce/ Economics
I mean it's
compulsory.
Remember to do these courses with friends for study groups and you'll be fine
Tim Xue Commerce/ Computer Science
19
SUBJECT TESTIMONIALS FINS3616 - Internation Business Finance best part about the subject?
What was the
A lot of calculations, if that's your thing. Very applicable in the real finance world, these skills are quite essential
wellstructured and wide in scope to cover all interests,
The course is extremely
including exchange rates for your future travel plans and the global economy
What about the
The content may not seem relevant now but it helps develop an understanding of the nuances of
international transactions, which will only continue to increase in relevance
worst part about the subject?
Sometimes the teaching can be confusing and hard to grasp, and quite dull
The course is more content-
Very punishing of silly
heavy than other finance
mistakes and it can often be
electives and leans more
confusing when multiple
towards the quantitative side
currencies are involved
Advice for future students
Spend effort perfecting the first few weeks and the rest should come naturally
This course has been one of
Don't take the first 4 weeks
my favourite subjects.
chill, they are arguably the
Contextualising the material
most important part of the
and applying it to the global
course, as everything else
world helped me with
builds upon them
studying for this subject
Vedant Shah Actuarial Studies/Commerce
Yolanda Zhang Actuarial Studies/Commerce
Alex Wong Commerce/Law
20
Financ prof
ce firm files 21
INVESTMENT MANAGEMENT
OVERVIEW Investment managers play a key role in the global economy via managing the assets of institutional investors, mutual funds, government agencies and high net worth individuals. This traditionally refers to allocating the clients’ money toward various assets, including stocks, bonds and commodities.
FUNCTIONS Investment Management firms core duties include: Interpreting the client’s goals in relation to their risk appetite Involves
discovering
clients’
current
financial
situation,
additional
required
amounts
(if
necessary), investment timeline and how much they’re willing to risk. Observing markets for investment opportunities This involves extensive research into different asset classes, recent economic trends, global policies etc. Composing investment strategies Delivered as reports. They provide a holistic overview and analysis of the clients’ current portfolio (including selling/buying suggestions) and new opportunities (including investment thesis and related strategies).
KEY ROLES Investment Management Firms are primarily comprised of: Investment Managers Collaborate
with
analysts
to
research
prospective
investments,
and
allocate
client
funds/assets to generate profit. This involves disclosing investment strategies/rationale to clients, and as such are required to be broad in scope. Investment Marketers Acts as the firm’s rainmaker. Additionally, they advise clients on new investment decisions. This often includes selling new financial products and updating clients regarding current rates and policies. Internal Auditors Monitors firm’s accounting records to ensure misinformation is minimised. Portfolio managers Execute investment strategies and are responsible for making buy/sell decisions across various asset classes Compliance Officers Ensures the firm complies with regulations and legislations.
22
TRENDS Given
the
11%
increase
(USD
$92.7
trillion
to
$103.1
trillion)
in
global
assets
under
(AuM)
management, the Investment Management industry emerged from a global pandemic with relative promise.
This primarily refers to North America, the world’s largest centre for asset management, with AuM growing from $43.2 trillion in 2019 (USD) to $48.6 trillion in 2020 (12.5% increase).
This resilient growth is nothing new, particularly when considering how the industry withstood significant economic shocks during the GFC. This can be attributed to the nature of investment clients, where“investors are increasingly turning to alternative asset classes… hedge funds, private equity, real estate” (Fabozzi, Focardi and Jonas, n.d.).
In particular, Real Estate assets have improved performance, in which Financial Year returns (%) for Australian Listed Properties jumped from 13% in 2018 to 19.3% in 2019. This likely stems from an overall increasing population, where Australia has experienced a 16.6% increase over the past decade. Additionally, Work From Home protocols have enhanced the viability of Real Estate as an alternative investment, given the exponential growth of the Housing Price Index from -1.8% in July 2020 to 6.7% in July 2021.
Case Study: One such Investment Management firm is Challenger, an investment management firm that focuses on providing clients with financial security for retirement. Established in Australia in 1987, the firm aims to create wealth for clients in the accumulation phase of superannuation, by converting it into safe
and
reliable
income
channels
for
retirees.
Given
the
above,
Challenger
primarily
offers
products tailored toward aiding a client’s retirement. These products include lifetime & fixed-term annuities, aged care solutions and superannuation products. These can be categorized into two core investment businesses:
Challenger Fund Management: A fiduciary funds management division. It is composed of: Challenger Investment Partners and Fidante Partners. Challenger
Investments
Partners
(CIP
Asset
Management)
monitors
global
opportunities,
specifically across real estate, fixed income and solutions regarding liquid asset classes.
Challenger Life Company The life division that is regulated by the Australian Prudential Regulation Authority. Currently have AUD $21 billion in Assets under Management. As the largest provider of annuities, the Challenger Life Company provides safeguards against various long term risks (E.g. Inflation, Interest and Exchange Rates etc.). As such, investors are guaranteed income without needing to worry about insufficient funds in the future.
In addition, Challenger’s ‘Accurium’ provides actuarial certificates and education regarding self managed super funds to individuals during their retirement phase (or the transition to it). This involves ‘TechHub’, an online learning platform that provides ‘Continuing Professional Development’ accredited by the Financial Adviser Standards and Ethics Authority (FASEA) and the Self Managed Superannuation Fund Association.
Challenger offers careers in a variety of different fields, including portfolio management, asset management and financial analysis. These fields often work with various asset classes (fixed real estate, income and equities. Recruitment Timeline for Summer Intern Applications: Open: June, Close: Mid-July
23
Asset Mana OVERVIEW Asset management is the practice of increasing the total wealth of individuals, investment banks and other financial institutions over time through acquisitions, management, and trading of investments that have potential to grow in value. Asset management aims to maximize the value of an investment portfolio over time while maintaining an acceptable level of risk.
Asset management is practiced by a wide range of parties such as banks, individuals, financial institutions, and more. To maintain a stable asset management system, organisations which participate in asset management must consistently maintain and analyse data from multiple sources which may affect risks, benefits, and any other factors which can alter the success of an asset management strategy.
Some examples of asset managers include corporate buyout asset managers, infrastructure or mining asset managers, and real estate asset managers.
KEY ROLES AND RESPONSIBILITIES
1
COVID-19 shifting asset management trends Since the sudden introduction of COVID-19, investors have started to value assets which have longevity and stable returns over a long period of time EG 10 years . In recent years, investors especially in the US, have been looking to invest in infrastructure with the 2.2 trillion infrastructure investment valuation .
2
ESG A prime example of ESG investment is the Queensland Treasury Corporation Green Bonds (QTC Green bonds). There has been a recent investment of 2 billion dollars into decreasing carbon emissions in the Australian economy . A recent project which has been funded is Gold Coast Light Rail – a transport system fully electrically powered .
Huge rise in assets and shift in investor base
3
EG Blackrock is one of the largest investment firms, and has recently started to invest in Superfunds and expand their investment base. Recently, they have started to target markets which other firms have been abandoning EG Vanguard, which was valued at an approximate 2 billion dollars
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agement Case study: ABOUT Blackrock is one of the largest investment firms based in America and roots its history back to 1988. It is currently one of the world’s largest asset management firms and their assets are valued at over 9 trillion USD. Blackrock currently provides financial solutions through their professional services and servers organisations and individuals such as not-for-profits, corporate firms, and high net worth individuals.
RECRUITMENT CV and Cover letter
Submit a cover letter and a resume online to express interest in joining the firm! Show your individuality and demonstrate why they should pick you
Video Interview
You will be asked a series of questions on an online platform in a given time frame. If you are successful, you will be invited to the final stage
Group Interview exercise through presentations and/ or case studies
The final stage is a group interview / assessment centre, where the firm will provide you with a case study for you to work together with other candidates.
TYPES OF ASSET MANAGEMENT Digital Asset Management (DAM) Fixed Asset Management IT Asset Management (ITAM) Enterprise Asset Management Infrastructure Asset Management
25
Wealth Ma
OVERVIEW
Wealth management is an investment advisory service that uses a combination of other financial products and services to fulfill the needs of high net worth individuals. The advisor gains information about the client’s wants and specific financial situation, then tailors a personalised strategy that uses a variety of different financial products and services.
The global wealth management market has an expected growth rate from “$1162.66 billion in 2020 to $1263.34 billion in 2021 at a compound annual growth rate (CAGR) of 8.7%” (Businesswire, 2021). As COVID-19 continues to dominate domestic and global markets, global wealth managers have had to restructure business operations as global assets plunged in value due to reduced consumer confidence as capital allocation divested across diversified asset classes. However, as business activity returns to normalised levels, there is expected significant market growth as global economic activity recovers and the wider industry is expected to reach $1755 billion in 2025 at a CAGR of 9%.
KEY ROLES AND RESPONSIBILITIES A Wealth Manager is the professional who is in charge of advising individuals and families in undertaking this process. These professionals often operate as either an individual financial advisor or group collective under an integrated brand offering with key players in the market such as Morgan Stanley Wealth Management. Their overarching responsibility is to conduct due diligence across the financial planning process and assist in preserving and generating wealth for their clients. Key responsibilities of wealth managers may include Understanding the key objectives of retail and institutional clients to determine their current financial situation and objectives, such as their income, expenses, insurance coverage, risk tolerance, or other information critical to developing a financial plan. Recommending an integrated service offering across key strategies in cash management, insurance coverage, investment planning, or other areas in order to assist clients in achieving their financial aspirations. Implement financial planning recommendations or refer clients to external parties someone who are able to assist key capabilities across the wealth management process. Investigate available investment opportunities to determine compatibility with client financial plans. Monitor financial market trends to ensure that strategic objectives are achieved and client plans are responsive. Recommend an integrated offering across various financial products, such as stocks, bonds, mutual funds, or insurance.
26
anagement TRENDS Wealth management firms are integrating emerging technology into their systems that include artificial intelligence (AI), machine learning, and data analytics applications to provide a unique and hybrid experience across the wealth management process. Whilst the traditional financial management industry is racing to apply key technological innovations within existing processes, an interesting application of technological leverage within financial decision making is AI-enabled insights derived through natural language generation (NLG). This application of emerging AI technology aims to bridge the gap between data analysis and investment decisions to real-time insights in an automated trading frameworks.
Additionally, wealth management firms are currently offering a bigger portion of hybrid services including standardised and personalised tailored advice to global clients. Due to growing demand for consistent and robust solutions among consumers, the significance and need for standardisation and personalisation of advice arise. Therefore, wealth management firms are producing computer-driven analysis in order to offer standardised advisory services, while also maintaining granularity in their offerings with bespoke solutions.
Case Study: Morgan Stanley Wealth Management is a multinational financial services corporation based in America that specialises in retail brokerage, and they are the wealth & asset management division of Morgan Stanley. They have $38B wealth management client assets.
Morgan Stanley has been a global leader for 85 years in financial services, with the scale and stability to help bring you valuable opportunities. Managing wealth with the highest standard of care and providing financial advice to help support the goals of clients at any stage of life is their priority. Their teams provide “custom solutions for institutions, families and individuals with significant wealth, sports and entertainment professionals, and business professionals living outside the U.S” (Morgan Stanley, 2021, Wealth Management).
Morgan Stanley Wealth Management has an international sector, which focuses on a specific country or region, understands the culture, and recognises the fluctuating economic and regulatory climates. Through combining their investment knowledge with the global resources and intellectual capital of Morgan Stanley, the International Wealth Management are able to deliver relevant solutions that help clients pursue their personal, familial, and community goals (Morgan Stanley, 2021, International Wealth Management).
Recruitment roles open in Sydney right now, Internships aren’t available right now but usually occur in May-July time period.
27
Private
Equity OVERVIEW Private equity refers to capital investment made into private or publicly traded companies. Due to the nature of direct investment, investors gain a degree of influence over the companies’ operations by taking a stake in the company’s ownership, therefore requiring significant capital requirements. Private equity typically offers stronger returns that are less correlated with public markets, with the trade off that these investments lack liquidity.
Depending on various factors including the size of funds under management, investment strategy and economic conditions, a PE firm may seek to exit its investments in 3-5 years in order to generate an internal rate of return of 20-30%. In order to achieve these returns, PE firms will typically perform a “Leveraged Buyout” (LBO), which involves financing the investment with significant levels of debt thereby minimising initial equity.
KEY ROLES AND RESPONSIBILITIES In recent years, several key themes have been dominating PE in Australia and globally. The interest in the technology sector has been accelerated by the pandemic resulting in PE investment into tech companies representing around 40% of total deal value. This trend is expected to continue with opportunities within SaaS, Fintech, HealthTech and mobile. Valuations have remained relatively high as PE firms remain concentrated on growth-oriented businesses An underlying focus has been placed on ESG, even throughout the pandemic. As consumers place a greater preference on companies that employ ESG initiatives, PE firms must align their strategies in order to create value. Capital market liquidity has encouraged increased activity in the financial sponsor space. This has grown by 7.4% in Q1 of 2021 driven by strong deadflow within the market as businesses are looking to expand on record low interest rates and cheap capital Large PE activity in the infrastructure space, notable parties include MIRA, The Partners Group and Palisad As investors have increased demand for stable and non cyclical cash flows due to the results of the pandemic
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Case Study: ABOUT
KKR is an American private equity firm that was founded in 1976, and currently manages USD$153B. KKR is recognised as one of the earliest and most successful private equity firms, with offices globally.
KKR offers various private equity investment strategies including Infrastructure, Energy Real Assets, Health care growth and TMT growth. Within Australia, some notable companies within its portfolio include Arnott’s, Laser clinics Australia, MYOB and Pepper Group. KKR aims to create value through a three stage assessment process.
Asset Selection: Identify operational improvement opportunities during the due diligence stage.
Transformational Change: Work closely with key management to support operation improvements within the company.
Leverage KKR Scale: Employ cross-portfolio programs that aim to improve operations and enhance value.
RECRUITMENT
Recruitment at KKR is highly competitive, with only a few positions available each year with thousands of applicants.
1
The recruitment process typically begins with a first-round interview with an investment team member via phone call or zoom.
Eight individual interviews from various members of the team. These
2
interviews
will
assess
technical
skills,
cultural
fit
and
will
often
involve case studies to test their abilities under pressure.
KKR does not have a defined background of ideal candidates, however, have historically displayed a
preference
towards
candidates
with
a
developed
corporate
finance
background
within
investment banking, consulting or law at top firms.
29
sALES & TRAD OVERVIEW
Sales and Trading (S&T) is a division at an investment bank that consists primarily o execute orders and advise clients on entering and exiting financial positions.
KEY ROLES AND RESPONSIBILITIES
As part of S&T activities, the key roles and responsibilities of traders are buying and
specialise in different investment areas such as stocks, bonds, or commodities. Spec
Traders are responsible for managing both risk and capital and for security analys
traders engage with other counterparts in other investment firms or commercial ba sell securities or derivatives.
The key functions of S&T are as follows:
Sales
Salespeople are split up by products such as equities, fixed income etc. In addition to the product, salespeople are split up even further such as by client type which includes Hedge Funds, Corporates, Insurance companies and Buy-side Investors (i.e. Asset Managers, Pensions Funds and Insurers).
Trading
Traders
execute
trades
such
as
buying
and
selling
stocks,
futures
and
other
securities on behalf of their firms or clients.
Structuring
Structurers work directly with traders when executing trades. They have expertise in complex products and are responsible for pitching their area of expertise to clients.
Research
Researchers
provide
insights
and
potential
investment
and
trade
ideas
to
salespeople, traders and investors. Different types of researchers include: equity research which is focused on equities and credit research which is focused on the fixed income side.
Quant/Strat
Quants, also called strats, are responsible for maintaining electronic trading or algorithmic
trading
platforms.
This
area
of
the
business
is
growing
as
certain
trades such as cash equities and FX are increasingly being done electronically.
30
DING
of salespeople and traders. Salespeople call institutional investors with ideas and opportunities, and traders
d selling securities, either on behalf of the investment firm they work for or on behalf of their clients. Traders cialisation in sales and trading typically goes much deeper than what individual traders are assigned to.
sis. In most large trading firms such as investment banks, because of the large amounts of trading activity, anks. Salespeople work with different products and with different client types to pitch ideas and to buy or
Case Study: ABOUT Morgan Stanley is a leading provider of execution services and solutions across global equity derivatives markets. The product suite encompasses “equity options, equity swaps, warrants, structured notes, and futures on individual securities, indices, and baskets of securities. They are a global leader in executing transactions in cash equity and equity-related products for institutional clients around the world. These products include common stocks, global depository receipts, and exchange-traded funds. For more than 25 years, Morgan Stanley has led the industry and set the standard for excellence in prime brokerage. Their broad and deep client relationships, marketleading platform, and intellectual insights enable them to be a world-class service provider to their clients for their financing, market access, and portfolio management needs.” (Morgan Stanley, 2019)
In a variety of areas, such as municipal securities, investment-grade, and high-yield bond and credit derivatives trading, Morgan Stanley trades all assets that are fixed income with embedded credit. In addition, Morgan Stanley “structures, underwrites, and trades the full range of collateralized securities, including those backed by residential and commercial mortgages, in both the cash and derivatives markets. Our global sales function connects Morgan Stanley’s resources with our institutional clients, such as banks, insurance companies, hedge funds, money managers, pension funds, and mutual funds. Sales executives help institutional clients to achieve their particular investment objectives, providing them not only with product expertise but also with access to all areas of the firm.” (Morgan Stanley, 2021, Sales & Trading).
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Investment banking OVERVIEW Investment banking is a sector of the financial services industry which functions as intermediaries between organisations and investors. They assist governments and corporations in raising capital through Initial Public Offerings (IPOs) and carrying out transactions such as mergers and acquisitions (M&A). What started as a partnership firm that focused on supporting security publications evolved into a "full-service" range which included investment management, proprietary trading, and securities research. KEY FUNCTIONS Investment banking is known to be sectioned into three key functions; front office, middle office, and back office. The front office manages revenue generation, including divisions such as corporate finance as well as sales and trading. The middle office includes activities that support processes associated with revenue generation, like treasury and risk management. Lastly, the back office comprises roles that are unrelated to revenue generated, such as human resources (HR) and information technology (IT). These offices are “traditional” classifications, however it may be easier and more convenient to think of these in terms of revenue-generating roles, risk-related roles, and supporting roles. It is recommended that you aim for the front office if you are high achieving as these roles usually offer higher salaries along with better career options, exit opportunities, and promotions.
Front Office Divisions:
LevFin division (leveraged finance division) - responsible for providing advice to Private Equity firms and corporations to raise debt capital.
M&A division - advise clients on various buy-side and sell-side deals. Other responsibilities include sourcing deals and creating pitch books for VPs and MDs to pitch transactions to their clients.
Restructuring & Special situations division - provide financial restructuring solutions for distressed companies in navigating financial distress to avoid insolvency.
32
TRENDS Sourcing new opportunities through strengthening relationship capital
Corporations with secure governance around relationship management attentively track deal influencers while leveraging technology to assist dealmakers in fueling social strategies and amplifying the value of their relationships over time. This focuses more on the long term goal of developing relationship value, rather than the individual transactions, creating generational impact and growth.
Accelerate deals and transactions through AI and predictive analysis
As technology innovation continues to advance across market capabilities, global investment banks are beginning to understand the benefits key technology can provide in improving existing operational capacities. As an example, leading integrated investment bank Goldman Sachs is beginning to equip the potential power of machine learning and artificial intelligence (AI) to receive “proactive alerts when their professional networks change.”
Whilst robots obviously cannot replace the role of executives or directors, they can and will facilitate collecting information and accelerate the pace of making deals. In addition, key artificial intelligence capabilities can also offer sufficient value towards high-pressure deals by ensuring meeting scheduling are seamless, thus eliminating possible human errors on complex contracts, or simply automating the signing process.
Case Study: Deutsche Bank is a German international investment bank founded in 1870 and is known as a leading European Corporate Bank. It began with a goal to assist German businesses into the world. Ever since then, Deutsche Bank worked across borders to enable societal progress as well as economic growth through its constructive impact. With its network spanning over 58 countries, the bank is not only listed on the Frankfurt Stock Exchange but also on the New York Stock Exchange. Deutsche Bank operates where it feels is competitive along with where clients want it to be, allowing it to be less complex and more profitable.
33
Financial p analysis OVERVIEW Working with Chief Financial Officers (CFO), Financial Planning and Analysis (FP&A) groups play a significant role in firms as they provide support for major corporate decisions made by the board of directors through executing analysis, forecasting, and budgeting. Without the incorporation of careful financial planning and cash flow management, it is almost impossible for companies to profit and grow consistently. FP&A differs from accounting in a sense that it concentrates on forward-looking data while attempting to predict future developments, rather than reviewing information from the past to measure the current financial position of a company. FP&A professionals can identify opportunities for investment, savings and efficiency, which can effectively assist leaders of the finance department in prolonging and mitigating additional costs.
KEY ROLES While specific roles and job titles of FP&A team members may differ by organisation, here are some of the commonly used titles and the respective responsibilities that come with them:
Corporate Financial Analyst
Focuses on analysing trends and forecasting to advise recommended actions.
Assess financial performance through comparing genuine results with predictions and plans.
FP&A Manager
Works intimately with leadership teams to construct short term and long term strategic plans.
Communicates recommendations and outcomes to senior management which will result in cost reduction, revenue generation, and more efficient operations.
Director of FP&A/Vice President of FP&A
Improves and pushes existing management reporting to be increasingly timely and precise.
Cooperates with IT and the general organisation to advance forecasting by system optimisation and automation.
34
planning &
s (FP&A) TRENDS
According to Unit 4 Communications (2021), the influential role of technology in helping change the way we do nearly everything in, not only our professional, but also personal lives is anything but new. Here are a few of the emerging FP&A trends AI becomes an expanding role in FP&A : Artificial intelligence (AI) making the list is certainly no surprise. With the smart algorithms used to predict the potential content we are likely to enjoy on
social
media,
AI
is
working
hard
in
the
financial
industry,
particularly
in
the
role
of
forecasting. Overall, trends like these that are related to technology will quickly grow and lead to endless data-crunching possibilities. Finance leaders eventually turn into storytellers: Unit4 Communications (2021) continued stating that
forward-thinking
dashboards explore
and
and
leaders
data.
uncover
Just
in
like
critical
the
finance
journalists,
information
industry
they
about
are
are
now
crafting
their
working
compelling
company,
beyond
just
narratives
delivering
these
sharing
while
they
stories
and
headlines to the board and their colleagues.
Case Study:
The
Financial
Planning
Association
(FPA)
is
a
professional
organisation
for
the
financial
planning
industry in Australia, representing more than 13,000 members where 11,400 of them are practising financial planning and 5,700 are certified professionals. Founded in 1992, the FPA has changed the image of financial planning, from just another industry to a profession that earns customers trust and confidence.
FPA
believes
that
better
financial
advice
will
influence
the
financial
wellbeing
of
all
Australians.
Consequently, the associate of FPA offers the CERTIFIED FINANCIAL PLANNER certification program, which
aims
addition, Through
to
FPA its
develop
professional,
represents
members,
members’
FPA
stands
compliance interests with
and
with
ethical
standards
legislators,
Australians
for
a
for
regulators better
CFP
and
financial
professionals.
consumer future
in
In
bodies. better
understanding consumer needs and tailoring financial products and services to meet such needs.
35
Venture capital
Overview
Venture capital is a type of financing and private equity where investors help provide for emerging companies, small businesses, and start-ups with high growth potential but cannot yet access equities markets.
Apart from access to capital, many venture capital programs also provide portfolio companies with access to skills and professionals. Venture capitalists invest in high-risk start-ups in return for earning interest on invested funds, equity ownership in the companies, and in hopes of the portfolio company’s future success. Venture capitalists research potential investments, new companies, and market trends to inform their decisions. Trends The future of venture capital is expected to see an increase in the number of mega-deals from companies worth over $1 billion with venture capital funding rounds getting larger. In 2020, the median fund size in the US grew by 69% to $75 million - the largest growth since 2008.
VC has also become prominent with the popularity of angel investing TV Shows such as Shark Tank and The Social Network as well as the increase in start-up accelerators, and the growth of VC companies like Google Ventures and Bain Capital Ventures who offer a platform of networks and a range of services on top of simple funding. Venture capital is thus becoming increasingly prevalent with the rapid growth and demand of technological start-ups.
Key Roles Whilst the number of levels vary between different firms and their different structures, the standard Venture Capital Career path involves beginning as an Analyst, progressing to an Associate, then Senior Associate, then Principal or VP, Junior Partner, then Senior Partner.
A graduate analyst role involves predominantly numerical calculations, industry research, assisting with due diligence and other internal processes. Analysts may learn some financial and market analysis to equip. them for driving deals during future Associate and Principal roles. Most venture capitalists receive remuneration in the form of salaries, bonuses, and commission on their portfolios.
36
Case Study:
About Bain Capital is one of the world’s leading private multi-asset investment firms with approximately $140 billion USD in assets being managed, including the ownership of Virgin Australia in a $3.5 billion sale in 2020. They operate as a separate spin-off company from Bain & Company, specialising in Private Equity, Venture Capital, Credit, Public Equity, Impact Investing, Life Sciences, and Real Estate. They began in Boston Massachusetts USA, but now span globally across many regions and a range of industry sectors. Bain Capital has made over a thousand investments, earning $106 billion USD in revenue in 2020.
Description
Bain Capital Ventures is a leading venture capital firm that operates on both a domestic and international capability across 26 countries globally. It is a value-yielding subsidiary of Bain Capital, focusing on fostering the next generation of innovation through venture capital, and in particular, investing in seed to growth-stage start-ups that focus on using technology to disrupt existing markets.
As one of the world’s leading venture capital firms, Bain Capital has strong support and backing from institutional investors, government agencies and global fund managers. They achieve global success by utilising a mix of key capital allocation and tailored strategic initiatives to support businesses in transforming major global industries such as Saas, Fintech, and the diversified healthcare sector. Bain Capital accesses investments between $1million to $100 million whilst creating a streamlined platform for founders to connect through networks, partners and customers.
Careers In Australia, Bain Capital focuses predominantly on Private Equity and Credit. Whilst they do not have a formal internship or graduate program for students in Australia, they offer broad careers in all of their practice areas across Asia-Pacific, Europe, and the Americas.
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Capital Mar OVERVIEW
Capital Markets facilitate capital transfers between investors and institutions. These include Equity (Shares, ETFs), Debt (Corporate and Government Bonds), Foreign Currencies, Commodities and Derivatives.
Primary and Secondary Markets Primary Markets Placements: The company sells directly to select private investors (E.g. Banks, Hedge Funds). These are sold to private investors without needing to be publicly available.
Preferential Allotments: The company offers shares to select investors at special prices. These prices are unavailable to public.
IPOs: Occurs when a private entity goes public and issues stock to the public for the first time. The shares purchased from the underwriter of the stock.
SEOs: A public company issues new stock.
Secondary Markets Secondary Markets facilitate trade amongst investors. These transactions are executed through various securities exchanges (E.g. ASX, NYSE and NASDAQ)
TRENDS
During
COVID-19,
the
Australian
government
provided
significant
stimulus
to
corporations,
which meant that capital markets fully unlocked during the pandemic This allowed many companies to raise debt in order to extend their liquidity runway and accumulate cash on the balance sheet This
also
allowed
for
an
M&A
boom
as
companies
started
using
their
accumulated
cash
balance for inorganic growth, which also provided impetus to boost the demand to access capital markets Infrastructure
boom:
Transurban
bid
for
Westconnex,
Consortium
bid
for
Sydney
Airport,
Mastermyne’s acquisition of PYBAR, Allegro’s bid for Toll Group Interest rates are record low, allowing for cheaper financing, providing further momentum for strategic and financial buyers Attractive equity market as economies recover and investors start deploying funds, more than 30 IPOs occuring in the last 6 months, with almost 50% at positive performance Iron ore price plunged by up to 50% since its record high in June (from $US257/t to $US110/t) due to weak demand from China Average steel mill production in China dropped by 5% on a daily basis to promote clear skies for Olympics and to meet its environmental targets
38
rkets Case Study: The most well-known players in Capital Markets are major financial institutions within their Investment Banking Divisions (J.P Morgan, Goldman Sachs, Citigroup). This represents the ‘Sell Side’ of Capital Markets, most of which conduct annual internship programs.
One prominent example is Morgan Stanley, a leading financial institution known for executing transactions in equity-related products for institutional clients around the world. Morgan Stanley can be categorized into 3 divisions, including the Investment Banking Division, Wealth Management, Investment Management.
The investment banking division provides key services within capital markets, particularly, capital raising (IPOs and SEOs). The division also provides financial advisory services, including M&A advisory, restructuring, real estate/ project finance, and corporate lending.
Services within the Wealth Management division include stock brokerage and advisory. It merged with Citigroup’s Smith Barney in January 2009.
Finally, the Investment Management division provides asset management services to retail and institutional clients via distribution channels (Third-party retail channels and Morgan Stanley’s Institutional channel). The division also offers products in equity, fixed income, alternative investments and private equity.
There are also ‘Buy Side’ institutions who invest in corporations (E.g. Tesla, Alphabet) in exchange for debt and equity securities (bonds & stocks). These include: Bridgewater Associates – The Carlyle Group – Apollo Global Management
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EQUITY RESEARCH OVERVIEW Equity research provides an analysis on certain stocks across diverse industries to support financial services and investment division within firms. Their market analysis, industry research and trend projections allow them to provide guidance in whether to buy, hold, or sell certain equities. Their constant monitoring of the market and financial valuations is what provides them accuracy and reliability in the recommendations they provide.
KEY ROLES The equity research division within firms works in a flat organisational structure. In most cases, there will be associates working for one analyst, and that team researches into a group of equities. The team’s
main
responsibility
is
to
produce
reports
to
inform
their
clients,
ranging
from
in-depth
analysis to higher-level, quickly produced reports.
TRENDS Recent industry trends have shifted heavily with the impact of COVID-19 and investors showing different trends and preferences. The standard practices have been reinvented, with clients now demanding different types of reports and information. In recent years, investors have shown strong demand for forms of passive income over a long period of time.
The recent strategy priorities for the equity research industry has shifted to: 1. Diversifying and expanding through joint ventures across different industries and areas in the economy 2. Valuing ideas and innovative thinking, and understanding different client preferences for reports and analysis 3. The importance of client preferences and tailoring solutions and research to such preferences 4. The adoption of technology such as Artificial Intelligence, Machine Learning, and Big data has become a fundamental part of equity research. The multitude of sources of data online has made technology a necessity, such as social media, supply chains, constant market information requires financial analysis which is integrated with technology to take into consideration client preferences and markets with a positive outlook. Analytical tools’ leverage data analytics to provide value to clients and ease processes.
40
Case Study:
ABOUT JPMorgan Chase is one of the world’s most famous investment banks located in the states, with their headquarters in New York City. Not only this, JP Morgan’s outreach also extends to Australia and has a deep root of 100 years and is one of the largest financial institutions in Australia. Clients such as high net individuals, companies, and public sector organisations including the government seek JP Morgan’s financial services. Their expertise in asset management, equity research, and investment banking makes them a heavily relied on financial institution. JP Morgan has aimed to invest in CSR initiatives, and has invested an approximate $1.75 billion, and also offers volunteering services for communities and charitable initiatives through their extensive network, funds and global expertise.
RECRUITMENT PROCESS The equity research division within firms works in a flat organisational structure. In most cases, there will be associates working for one analyst, and that team researches into a group of equities. The team’s main responsibility is to produce reports to inform their clients, ranging from in-depth analysis to higher-level, quickly produced reports.
Explore 3 preferences – navigate through their website to find different roles which interest you – you can have up to 3 preferences
Apply - Upload your resume and use pymetrics to undergo psychometric tests to examine your personality, behavioural psychology, and analytical thinking
Interview: Complete the video interview via HireVue and answer the questions asked in an allocated time frame If the role is technical EG software development, there may be a technical interview where you will have to complete coding challenges The final round will entail either an in person or online interview where you will have the opportunity to meet firm members, where you will be asked technical, behavioural, and situational questions. Make sure to have questions prepared to ask the recruiters
Offer: Depending on your performance and multiple factors, you may be offered a position!
41
TREASURY OVERVIEW Treasury refers to the management of cash flows and financial risks within an organisation to ensure they are efficiently managed and optimised. The underlying focus of treasury is to ensure that cash and risk is managed on a daily basis, whilst maintaining the long term strategy. The ultimate purpose of treasury is to manage and maintain a company's liquidity and mitigate any risk, in order to align day to day operations with a long term goal. A career in
treasury
can
be
broken
into
three
functions:
Cash
management,
risk
management,
corporate finance.
Cash management:
This aspect of treasury is heavily focused on the operational side of
the business. Optimising efficiency and processes to assist with cash management will ensure the company has the right amount of cash on hand at all times.
Risk Management:
Risk management is concerned with unexpected expenditures. It has a
strong focus on operational controls and planning for the potential impact of technological changes, economic changes and company changes.
Corporate Finance:
Corporate finance is related to the strategic planning of financing
expenditures through borrowing and investment. The treasury will ensure that the sources of funding allows the company to meet long term objectives of the company.
TRENDS Treasure as an industry has been subject to new trends and directions as we recover from the
global
pandemic.
A
key
underlying
trend
is
the
employment
and
optimisation
of
effective hedging tools to mitigate foreign exchange risk. A key concern is whether the hedging tools complexity and operational costs justify its cost savings.
Treasury
has
recently
gone
under
a
significant
degree
of
automation,
as
companies
continue to integrate and automate risk management programs. Many companies have therefore increased their budget capacity to strategically adopt efficient technology and utilise software that promotes data-driven decision making.
42
Case study:
ABOUT Westpac
is
a
leading
Australian
commercial
bank
founded
in
1817
with
over
16,000
employees and offices globally, including London, New York, Hong Kong and Singapore. Westpac has a developed treasury team that aims to provide funding, liquidity and risk management to Westpac’s balance sheet, thereby enabling all other functions of the business to operate effectively. Westpac also extends its treasury services to small to medium sized businesses, helping them manage their financial risks and liquidity needs.
RECRUITMENT PROCESS The first step in the recruitment process to join the treasury team at Westpac is the online application.
This
involves
sending
a
cover
letter,
resume,
and
academic
transcript
in
addition to selecting team preferences. The second step in the process is an online assessment. The step helps Westpac determine whether your values align with Westpac and how suitable you are for the role. There are two online tests; Culture fit assessment and Psychometric testing. The third step in the process is a video interview with one of the team members.
43
OVERVIEW
Risk man
Risk management is the mitigation of costs associated with risks for corporations. Corporations face five main risks including liquidity, operational, market, default, and pure risk. Financial risk management seeks to understand a corporation’s risk appetite, what risks the corporation is willing to take and which to avoid and develops a strategy to control the risks faced. Risk management involves identifying risk exposures, quantifying the exposure, and making decisions to hedge against the risks.
TRENDS
Risk management continues to evolve with increased regulatory compliance requirements around the world as corporations continue to face modern problems and new risks. These include risks associated with increased technological use and increased global and political risks as more and more multinational companies emerge. Coupled with increased regulatory compliance requirements over time and higher business stakes from the threat of financial and reputational damages for failure to adhere, risk management becomes more important than ever.
KEY ROLES There are many roles in risk management from broad backgrounds including but not limited to engineering, finance, statistics, and law due to the diverse nature of risks faced by modern companies. Jobs in these areas may vary in seniority and roles but include:
Risk Analyst: Examines the risk involved in a firm’s investment portfolio, project possible losses, and recommend risk-mitigation strategies through diversification, currency exchanges, and more.
Risk Manager: Works in an organisation to implement and manage their enterprise risk frameworks, monitor and inform them of potential risks, and make decisions on such identified risks.
Risk Management Consultant: Advises multiple organisations and individuals on their risks and develops plans to mitigate risk exposures.
Risk Control Supervisor: Supervises a team of risk analysts who handle claims, plan and direct business analysis, risk modelling and loss prevention strategies.
Director of Corporate Risk Management: facilitate risk management in the organisation and are responsible for ensuring the security and safety of all people, processes, and assets in the organisation.
Chief Risk Officer: are responsible for the implementation of all policies and procedures to mitigate risk and supervising the organisation’s risk identification and mitigation procedures.
44
nagement
Case Study: ERNST & YOUNG
ABOUT Founded in 1989 in England, Ernst & Young (EY) is one of the largest professional services companies in the world and is considered one of the Big Four accounting firms with $40 billion USD revenue in 2021, and 312,250 global employees. EY’s service offerings encompasses Assurance, Consulting, Strategy and Transactions, and Tax. Each service line includes numerous subdivisions such as risk management.
EY is a leader in risk management, aiming to create value and a competitive advantage for corporations by effectively navigating financial disruptions. The large multinational firm offers risk transformation, internal audit, technological risk services, actuarial services, financial services risk management, and forensic & integrity service offerings to help corporations manage risk. Within financial services risk management consulting, EY helps corporations minimise enterprise, liquidity credit, operational, compliance, and market risks, whilst also offering capital management, structured finance, and quantitative services. CAREERS EY offers multiple career programs for students at different points of their career paths.
Pre-Penultimate
Cadet Program: A two year program where students combine full-time work with part-time university to help students accelerate their development.
Career Compass Program: A short two day program to help students explore a range of career opportunities.
Penultimate
Vacationer Program: A 6-8 week internship program to gain exposure work within a chosen practice area, and take a step towards landing a graduate position at the firm.
Graduate
Graduate Program: Students can apply for this position when they’re in the final year of their degree or within 18 months of graduating from university. This is an 18 month entry-level program where new graduates begin their careers.
Application proces Online written applicatio Online Portal Assessmen Online Job Simulation Recruitment Day meeting recruiters either face-to-face or virtually 45
Institutiona Overview
Institutional banking is a special division within a bank that provides specialised services to businesses, inclu research - you could think of institutional banking as like financial consulting. Institutional banks deal wit distinction between institutional and investment banks are blurred, since they both offer overlapping service HISTORY AND TRENDS In Australia, the main institutional banks are the big four banks CBA, AN , NAB and Westpac. These banks are strictly separate, under the four pillars policy which was introduced in . The big four banks make up a uarter of the A 2 by market cap CBA is the largest by market cap, and has an overview below. ince institutional banks focus on much larger clients (corporations and government departments), their operations haven’t been as affected as other divisions such as retail As a graduate, institutional banks are considered a safe ob, since their services are always re uired and their clientele are low risk.
:
Z
1990
q
SX
00
S
j
q
CAREERS There are different career prospects for people who work in institutional bank ou can move around the different divisions of the bank In a retail bank; product or marketing In an investment bank; M A, trading, etc. Consulting :
Y
&
Case Study: Commo
About Commonwealth Bank is an Australian multinati including business and institutional banking, sup products and services. Commonwealth Bank’s solutions to both private and public sector organi capital raising solutions, transaction banking servic
Recruitment Recruitment Online application Advice Knowledge Assessment Phone Interview (Nine tips for the interview on C Academic Qualification Checks Online Assessments Interview (Ten tips for this interview on CBA’s w Background and Reference checks (At least 2 r
Case Study:
About National Australia Bank is a multinational bank corporate and institutional banking, business operations. NAB provides institutional banking th where it provides a range of specialist solutions i risk and specialized financing solutions.
Recruitment Application Phone Interview Formal Interview (Behavioural Event Interviewin Assessment (Mix - online/face-to-face and ma competency testing) Work reference and Background checks 46
al Banking
uding debt structuring, fund management, trading and th large corporations and government institutions. The es.
onwealth Bank
ional bank that provides integrated financial services perannuation, funds management, insurance and retail Institutional division forms relationships and provides isations through a range of financial market capabilities, ces and risk management products and services.
CBA’s website)
website) recent managers)
that operates in four key divisions; personal banking, and private banking and technology and enterprise hrough its Corporate and Institutional Banking division including financing corporate growth, managing market
ng) ay include cognitive, psychometric and or/
47
BROKERAGE OVERVIEW Similar to investment banking, a brokerage service’s major duty is to act as an intermediary and link their clients to the other side in a trade, bringing together sellers and buyers at the best price possible for both parties. These services involve transactions such as trading shares, stocks, or other financial assets on either a transaction fee or commission basis. There are many different types of brokerage firms, contributing to a wide variety of goods and services.
THREE MAJOR BROKERAGE TYPES Full-service brokerage (traditional brokerages) This type of brokerage company employs professional financial advisers who control all investment choices and delivers ongoing support and advice. These brokerages are undoubtedly the most expensive option as their services are higher quality compared to the other brokerages.
Discount brokerages Coming in next is the more affordable discount brokerage. What was once a face to face operation is now regularly online as this allows self-directed investors to decide their own trading deals for lower commissions. As a result of this, there has been a boost toward zero trading commissions for exchange traded funds on many self-directed online platforms. These brokers may attempt to deal fairly low flat fees for trades in radio, internet and television advertising.
Robo-advisors Robo-advisors, also known as automated investment advisory platforms, are a somewhat new form of digitalised financial advisors. These inexpensive digital advisors deliver investment management services executed by algorithms with minimal human intervention. Various robo-advisors provide zero fees or commissions, where buyers can begin with as little as $5.
48
Case Study:
TRADEMAX TMGM is one of the leading innovators providers of contract for differences (CFD) trading. They
are
continuously
pressing
the
boundaries
through
cutting-edge
development
and
research. TMGM has more than 15,000 shares and ETFs along with 5 cryptocurrencies and commodities.
TMGM aimsto provide its clients with the best trading conditions, powered by both industryleading
and
cutting
edge
innovative
platforms.
It’s
R&D
efforts
constantly
push
the
boundaries of liquidity and usability to empower clients to benefit from a truly exceptional trading environment. At TMGM, as one of the leading brokerage firms across Australia, and with
rapid
growth
across
the
Asian-Pacific
market,the
business
connects
the
everyday
investor to the widest range of markets through both industry-leading platforms and its own proprietary cutting edge platforms. TMGM provides both the best breadth of markets and depths of liquidity. Utilizing OneZero’s cutting edge pricing engine to support multi-tiered best bid/ask aggregation, its smart order routing executes customer orders on the best price available in its deep liquidity pool, allowing customers to trade a wide range of markets at truly competitive rates.
49
insights indus profess
s from stry sionals 50
Victor Rodriguez
HEAD OF FIXED INCOME INTRODUCTION & CAREER JOURNEY I’ve been working in financial services for 27 years, initially starting in banking before very quickly making the move into investment management. I then spent over 13 years in the Asset Management division at Credit Suisse (CSAM), initially starting as a dealer. trading a wide range of bond and derivative investments for portfolio managers. I then moved into a credit analyst role, analysing companies issuing debt
in
bond
markets
and
putting
forward
buy
and
sell
recommendations,
before
becoming
an
investment manager, helping manage a range of different portfolios and funds for institutional and retail clients. On New Year’s Eve 2008, global asset management firm, Abrdn acquired the division I was part of at CSAM, and I was tasked with leading the merged Australian fixed income team. This 8 year stint also included a few years in Singapore heading up the Asia Pacific investment team before returning home to my current role at Challenger in 2017.
WHAT DOES A TYPICAL DAY IN YOUR CAREER LOOK LIKE? I’m
not sure there is such a thing as a typical day, the role is wide and varied, but maybe I can just use
today as an example: As a member of the Investment Committee, an assessment and approval of a $150m loan following private equity sponsored acquisition of an Australian medical services company Negotiating
amendments
to
our
investment
management
agreement
with
large
Australian
superannuation fund, including discussion on management fees Internal
meeting
ahead
of
discussion
with
regulator
seeking
our
thoughts
on
the
liquidity
we
witnessed during times of market distress such as witnessed last year Portfolio construction meeting with members of my team, discussing how to position portfolios given seemingly stretched valuations in public credit markets (and most other risk asset classes!) Funds Management Leadership Team meeting discussing potential launch of a new total return fund in our product suite End the day with an evening zoom call interviewing for candidate in our London based securitisation team
51
WHAT ARE THE MOST ENJOYABLE ASPECTS OF YOUR WORK? I quickly moved from banking into investment management and felt more at home. I enjoy the fact that in this industry, we only succeed if our clients succeed. Our fee structures are such that we need to keep clients (saving for or already in retirement) over the long term to ensure a profitable business, consistent with our fiduciary obligations as investment managers. Other parts of the financial services industry can be more transaction fee based, where incentives may differ. Day to day, the fast-paced environment (even more so in lockdown!) and the intellectual challenge of understanding a business well enough to determine whether we should be lending to it or not are the two things I would call out as providing lots of enjoyment. In the second half of my career, I have also been
surprised
with
how
much
I
have
also
enjoyed
the
people
management
that
comes
with
a
leadership role. Every person is different, and whilst sometimes that can create more issues than one would like, understanding what motivates people, their hopes and their fears, finding ways to help them develop their skills and progress their careers are all a source of great joy – I would not have said that when I started managing people I stress!
WHAT DO YOU BELIEVE ARE SOME OF THE MOST IMPORTANT ATTRIBUTES TO SUCCEED IN THE INDUSTRY YOU WORK IN? The Investment Management caters to a wide range of potential career opportunities from risk-based roles in areas like Compliance, to Accounting/Finance or even a career in Sales, the pathways are wide ranging.
Just
focusing
solely
on
a
career
as
an
investment
manager,
quite
obviously
a
thirst
for
knowledge and passion for investing is critical. I might just single out one less obvious attribute here that I have witnessed over the years. As an investor, you will also need to be prepared to be wrong sometimes and learn from those experiences. An accountant probably fails if they get things wrong 1% of the time, whereas an investor can succeed getting things wrong 20% of the time. That doesn’t make it easier, it’s just the difference between accurately recording the past and trying to predict the future. It’s an attribute and a mindset that some people embrace much more than others.
WHAT CAREER ADVICE WOULD YOU GIVE TO YOUR YOUNGER SELF? Even if you love what you do, that can sometimes be easy to forget, particularly when you’re less experienced or during times of heightened market stress and turmoil, like we saw for example during the GFC in 2008. With that in mind, I would simply say to my younger self “Remember Vic, you’re far more likely to perform at your best if you’re having fun” :-)
52
Christina Manonian
SENIOR DIRECTOR INSTITUTIONAL BUSINESS
INTRODUCTION & CAREER JOURNEY I actually started my career in the insurance industry – probably influenced in part by my father, who spent the bulk of his career after starting in public accounting. I worked for a reinsurance broker in New York City, and while I found the concept of risk transfer and pooling very interesting, I found the insurance industry fairly narrow in scope. I moved on to a role in Investor Relations with an agency that represented many different types of businesses, so got a broader scope and worked with CEOs and CFOs from a range of industries.
I learned so much about both capital markets and corporate communication – and discovered my passion for blending the two. I moved west to San Francisco, taking a role in a tech PR firm within their financial services team – working with clients mainly in venture capital, private equity, and investment banking. However, I missed the analytical side of things and when an opportunity came up at Franklin Templeton, I jumped at it. I worked first in the Institutional Marketing & Communications team, and then in the Institutional Product Management team. After a few years in California, an opportunity to do a 2year stint in FT’s Melbourne, Australia office came up – and being newly married to someone who loved both traveling and surfing – it wasn’t a tough decision to make the leap down under. I found the superannuation industry both welcoming and dynamic – and the close knit nature of most asset owners being in Sydney and Melbourne meant that there were ample opportunities for networking and learning through conferences and events. We ended up staying 8 years and having both of our children here. From there, we moved back to California for 2.5 years, and I worked on FT’s US Institutional Consultant Relations team. But… we missed so much about Australia, so when the opportunity again arose to move back – we followed our intuition and crossed the Pacific Ocean once again.
53
WHAT DOES A TYPICAL DAY IN YOUR CAREER LOOK LIKE? There’s no typical day necessarily, but the one element that’s constant is a focus on our clients. My time is split between business development (new client relationships) and working with existing clients. It’s fast paced, and the industry is constantly changing. I have a lot of client meetings, some internal meetings, make phone calls and spend a good amount of time on email. Another element is staying current on the markets and news, so I read a lot. I studied Economics in university and do a lot of work with fixed income strategies, so knowing what’s happening with rates, political regimes and economies around the world is critical.
WHAT ARE THE MOST ENJOYABLE ASPECTS OF YOUR WORK? The most enjoyable element of my job is the interaction – both with clients and with our team. I’m an extrovert by nature, so enjoy talking to different people with different backgrounds and perspectives. I feel like I’m constantly learning about different markets, companies, industries, and economies. I also love writing and developing clear communications, which is an important aspect of the job.
WHAT DO YOU BELIEVE ARE SOME OF THE MOST IMPORTANT ATTRIBUTES TO SUCCEED IN THE INDUSTRY YOU WORK IN? First and foremost, persistence, but I’d say that more and more it’s the ability to be flexible. Being able to build a rapport with clients and also internal resources is key, and being diligent in follow up to clients is absolutely critical. As mentioned, communication skills are also important, as is staying abreast of industry information. It doesn’t seem like a creative industry per se, but being able to think outside the box and develop new and customised solutions for clients is increasingly important.
WHAT CAREER ADVICE WOULD YOU GIVE TO YOUR YOUNGER SELF? Back yourself. Ditch your self-doubt, but also your ego. Do great work and put your hand up and things will work out. Also, you don’t have to have everything figured out all at once, and life (and your career trajectory) may not always be linear. You will have ample opportunities to contribute and help others throughout your career, and it is these elements that you’ll find the most meaningful.
54
Hart Lestari
FOUNDING PRINCIPAL INTRODUCTION & CAREER JOURNEY I grew up in Indonesia and Singapore and pursued my BS in Commerce degree at the University of Virginia, concentrating in Finance, Accounting and Social Entrepreneurship. After a few internships in asset management and investment banking, I joined J.P. Morgan’s financial institutions coverage team in New York. I worked in investment banking and venture capital for a few years in New York and Sydney before joining Barrenjoey in early 2021. I work in the financial services and technology coverage team now.
WHAT DOES A TYPICAL DAY IN YOUR CAREER LOOK LIKE? This changes a lot, so it’s hard to pin down.
Some days involve working on live transactions (equity, debt, or M&A). During my first year on the job, I worked on a few debt transactions, and IPO, and a spin-off. No year is the same, and your involvement in these transactions will mostly be driven by your experience and initiative.
Some days involve working through strategy or pitch decks. Since these outputs are less straightforward, the team usually starts with an internal meeting to set out key messages and identify analysis needed to help find the answer. The team will then go off to do the work and have a few check-ins / turns of comments before presenting the book to the client. You might get a few follow ups after the client meeting…or a deal to be worked on further!
Some days will require sprinting at both types of work, and others are nice and quiet, so you’ll have time to brush up on other deals / pitch decks / industries in the coverage universe…or take it easy.
55
WHAT ARE THE MOST ENJOYABLE ASPECTS OF YOUR WORK? One of the best parts of the job is working with your team to answer tricky client questions and arrive at the best advice to deliver. This involves workstreams such as running financial analysis, doing research on the industry, looking into the outcomes of what other companies have done, or speaking to people with more specialised knowledge. It’s also very rewarding to see your team’s advice and work come into fruition, whether it be an IPO, an M&A deal, a shift in the client’s strategy, or even just helping the client to further their internal analyses. The most enjoyable part is the people. Having a great team makes a huge difference when you’re struggling with finding the right answers, doing more tedious tasks (which are unavoidable), or looking for guidance on how to develop into a better adviser. I’ve met most of my closest friends at work so I think that says something!
WHAT ARE SOME OF THE MOST IMPORTANT ATTRIBUTES TO SUCCEED IN THE INDUSTRY? Resourcefulness – it’s important to be able to and have the initiative to figure things out on your own. Yes, you’ll have someone to point you in the right direction when you’re stuck, but I’ve learnt that it’s much better for your learning and the team’s overall productivity when you are able to look for answers and develop ideas on your own as well. Grit – it’s not all sunshine and roses. There will be times when you are tired and stressed, and in these times it’s important to remember why you are doing what you are doing, lean on your team, be transparent about your capacity and take care of yourself. Ability to work (well) under pressure – as much as we try to minimise panicky last-minute sprints, they will happen. Being able to process and integrate new information accurately and quickly under pressure is important. Ability to balance work / life / health – it’s important to know when to say no, whether it be pushing back on a new staffing because you are already working at 100%, skipping that workout because you haven’t slept enough, or taking a raincheck on that dinner in favour of a quiet night in after a long week. Ability to accept (or rather, invite) constructive criticism and develop from it – self-explanatory, but remember that work is very different from university, and that everyone always has something to improve upon (no matter how senior they are). Ability to connect with different personalities in your team / client base – this will reduce friction in everything you do, help you get more information and do a better job, and will only become more important over time.
WHAT CAREER ADVICE WOULD YOU GIVE TO YOUR YOUNGER SELF? Feeling overwhelmed at first is normal – it’ll get better. Everyone makes mistakes, don’t freak out too much when you do. It’s never too late to do something different. You are not superhuman (no matter how proud you are about able to work with 4.5 hours every night in your early twenties – it’s really not something to be proud of) – watch your health!
56
William Lee
NATIONAL FINANCE MANAGER BUILDING
INTRODUCTION & CAREER JOURNEY After graduating from university with a Bachelor of Commerce from the University of Western Australia, I started my career in the Audit and Assurance division of KPMG. I spent over three and a half years providing audit services to client across a diverse range of industries, specialising in, energy and natural resources, mining services, transportation and media. It was during this time that I completed my Chartered Accountants post graduate qualification.
I am currently the National Finance Manager for Lendlease’s Australian Building business. My role is focused on providing operational financial support and ensuring consistent application of financial process and framework, and leading the Building finance function’s support of origination activities. I have previously held roles across Property and Urban Regeneration during my time at Lendlease.
WHAT DOES A TYPICAL DAY IN YOUR CAREER LOOK LIKE? In my current role, each day is challenging and varied. My key responsibilities include ensuring effective financial risk management, the smooth coordination of finance and reporting activities and continuing to build a positive culture in the team so that everyone feels supported, engaged and is equipped to provide the best service possible to the business. This includes reviewing regional forecast data and validating
embedded
assumptions,
supporting
teams
in
tender
activity,
engaging
with
non-finance
stakeholders to understand the financial implications of operational decisions and helping to establish team strategy and future focus areas.
57
WHAT ARE THE MOST ENJOYABLE ASPECTS OF YOUR WORK? What I enjoy most is the diverse range of stakeholders that I engage with each day. This includes individuals within the Building business, but also across other functions/businesses and with external stakeholders. The ability to collaborate with others and contribute to a common goal is very fulfilling. The people that I get to work with is what keeps me motivated, engaged and excited to come to work each day. Finance are sometimes seen as the number crunchers behind the scenes, but what makes my work enjoyable, is the ability of our finance team to challenge the status-quo, influence stakeholders and drive positive change throughout the business.
WHAT DO YOU BELIEVE ARE SOME OF THE MOST IMPORTANT ATTRIBUTES TO SUCCEED IN THE INDUSTRY YOU WORK IN? I believe that the most important attribute to develop in the construction industry, is the ability to rapidly respond to change. Each day brings new challenges for our construction projects, this has been particularly evident over the past 18 months with projects managing the impacts of COVID-19 and the various government mandated regulations. As a finance team, we engage closely with commercial and operations teams, and the ability to pivot and proactively respond is key to enabling finance to provide the
insights
to
support
management
decision-making.
In
addition,
it
is
critical
to
always
look
for
opportunities for improvement and optimisation of process so that as a finance team, we can continue to evolve and better support the business.
WHAT CAREER ADVICE WOULD YOU GIVE TO YOUR YOUNGER SELF? For someone starting out in their career, I think that one of the most important skills to develop is to be a good listener. In my career to date, there is so much knowledge and capabilities that I have acquired through listening, actively seeking feedback and learning from others. Having confidence in your own abilities but maintaining a growth mindset, will ensure continued development at every stage of your career. Asking lots of questions and having a keen interest in what others do has helped me immensely in developing my financial and commercial knowledge. I continue to be amazed, inspired and educated by the people I work with each day and their wealth of knowledge. But most importantly, don’t be afraid to step outside your comfort zone and challenge yourself, you will surprise yourself at how much you are truly capable of!
58
Lauren Davies
MANAGEMENT CONSULTING MANAGER
INTRODUCTION & CAREER JOURNEY I
have
been
at
Accenture
for
6
years,
split
between
London
and
Sydney.
I
started
my
career
in
recruitment in London, hiring project management professionals into the Financial Services industry for a start-up boutique agency. About 18 months later, I started at Accenture on their grad programme, starting my career in Contract Management within retail, and moving to Capital Markets after 6 months, where I have been ever since. I made Consultant in London, and then decided that I wanted to transfer to one of Accenture’s other global locations. I picked Sydney, making connections in 2017 and moving over in 2018. I have now been here for 3 years, making Manager along the way, and I am currently working towards Senior Manager.
WHAT DOES A TYPICAL DAY IN YOUR CAREER LOOK LIKE? Typically check emails and clear inbox between 7-8am on the Accenture side. We often have a lot of internal work that we have to balance alongside our client work so I find it helpful to get on top of this early in the day. I then typically log on or arrive at client site between 8 and 8.30am.
My day typically consists of 70% meetings, depending on the day and the stage of the project. I usually catch up with my team first thing to set intentions for the day, in a measurable way. I would then have a range of internal and client meetings to run/attend, reporting packs to create, emails to respond to and team catch ups to attend.
59
WHAT ARE THE MOST ENJOYABLE ASPECTS OF YOUR WORK? I enjoy the people side of the job the most. I looked forward to becoming a People Lead (Career Counsellor) for most of my career, and currently have 5 counselees. It is good to be able to give back to the company and contribute towards people’s careers and it’s certainly a rewarding element of the job.
I also enjoy working with clients to help them to achieve their strategic goals and building continued relationships with them over several years, working together as delivery partners.
WHAT DO YOU BELIEVE ARE SOME OF THE MOST IMPORTANT ATTRIBUTES TO SUCCEED IN THE INDUSTRY YOU WORK IN? Grit and determination. Management Consulting can be a tough but rewarding industry. Hard work is a must, a clear communication style is hugely beneficial. Being your genuine self is the best advice I could give to succeed – people buy people – and overly-engineered, gimmicky sales techniques are not usually successful.
WHAT CAREER ADVICE WOULD YOU GIVE TO YOUR YOUNGER SELF? Working hard in the junior stage of your career will pay off in the long-term and help you to move quickly. Be proactive, reliable and useful. Take every opportunity to learn, do training, travel with the company. Enjoy it – the first few years in your career will shape the decades to come!
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graduate testimo
& student onials 60
NAHUM ADEEL
Private Equity Intern at Pemba Capital 4th Year Bachelor of Commerce (Finance) & Bachelor of Actuarial Studies
What motivates you to pursue a career in finance? For me it has to be the breadth and range of the
commercial deal
acumen,
process
and
but
what
also
learn
about
considerations
go
the into
structuring transactions.
work. Each deal is different and you’re working
refreshing - that also means you’re continuously
What was the most challenging part of your work?
learning. I also like to work hard and I thought
Probably time management – as an intern, you’ll
finance
you’re
be working for multiple analysts at the same time
basically packing 3 years of experience in 1 with
each with their own deadlines. Being able to set
the amount of projects you get involved in!
expectations and being transparent about your
on
something
new
suited
every
my
day
which
personality
is
type
always
–
capacity is very important to make sure all the
What do you do in your current role?
work gets done on time. On top of that, making
My role involves working directly with the deal
sure
origination
means
attractive
and
the
industries
investment and
niches
team
to
based
find
on
our
investment mandate. When I’m not researching potential
target
companies,
I
spend
my
you’re
completing
it’s
difficult
all
to
your
achieve
work
on
time
perfection
–
knowing where to put your effort can make all the difference.
time
working with analysts to put together slides on
Advice to students:
industry and company analysis for the investment
Do lots of case competitions! They’re a great way
committee. I also got a chance to sit in on the
to see what finance professionals get up to at
meetings with the management team of target
work, and they really do capture the essence of
companies and the bankers assisting us on the
what
deals.
finance. Case competitions are a lot of work,
it's
like
to
work
in
buy-side/sell-side
when you sign up it's important to be ready to
What do you enjoy the most about your work?
spend the majority of your time during the week
Definitely
on the case. Secondly, take a genuine interest in
the
variety
of
the
work
–
every
company is different, and you get a chance to
finance!
analyse them from an investor standpoint and
what’s going on in the industry (in your area of
think about all the factors they could potentially
interest).
affect
whatever financial modelling you can – it goes a
returns.
You
get
a
chance
to
directly from professionals and build your
learn
That
Try
means
to
use
being
online
up
to
date
resources
to
with
learn
long way especially in 1st/2nd year of uni!
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SAMANTHA CHEN Private Wealth Intern at Westpac 3rd Year Bachelor of Commerce (International) (Finance and Accounting)
What motivates you to pursue a career in finance? I
chose
to
major
in
finance
as
the
finance
industry is a necessary, fast-paced and evolving
units in the bank fit together and coordinate. I am often encouraged to make enquiries about other departments and areas of the bank which I find engaging.
industry that provides access to a variety of job
new
What was the most challenging part of your work?
programs, talk to new people and learn about
The most challenging part of my work is being in
new cultures. A major in finance perfectly aligns
an unfamiliar environment and given tasks that I
with my strengths and interests.
am not 100% confident in. I navigate through new
opportunities in various industries. As a curious individual,
I
love
to
learn
new
skills,
tasks
and
projects
by
setting
my
own
What do you do in your current role?
working
I am currently working as a Private Wealth Intern
utilising all resources available to me.
in
collaboration
with
goals,
colleagues
and
at Westpac. In this role, I work with my team to streamline Wealth other
processes
sector
and
business
experience
within
improve
units
for
to
Westpac’s
coordination
create
Westpac’s
Private
a
Private
with
seamless Wealth
Advice to students: As
a
university
important
to
student,
be
opportunities
that
believe
proactive will
and
allow
you
job
develop
would like to pursue a career in. A lot of my work
find
programs.
We
suggestions
also
for
respond
procedural
experience
to
and
customer service, where I learnt many skills such
from
as
conflict
resolution,
working
in
collaborating
retail
you
and
improvement
from
industry
technologies feedback
comes
the
to
for
is
procedures that are inefficient or redundant and new
to
look
it
transferable
through
relevant
that
customers. My team aims to identify the areas of
solutions
skills
I
in
a
and
team
staff in other teams and prioritise our workload
and working in a fast-paced environment. These
through cost-benefit analysis.
skills were transferable to my role as a Customer Service Representative at CBA, where I served
What do you enjoy the most about your work?
clients for their financial needs. It is important to know your motivations, your passions and your
What I enjoy about my role is that I am given
strengths:
this
will
allow
you
to
“sell
yourself”
exposure to many different areas of the business
when you go through the application progress
and I can observe how the different business
and interview stages.
63
TONY CHEN
Investment Banking Analyst at Neu Capital 2020 Graduate Bachelor of Commerce (Accounting and Finance)
What motivates you to pursue a career in finance?
My role at Neu Capital has helped me realise that
client
value
isn't
created
by
successfully
It's really fun, you learn heaps and also my mum
executing a transaction but rather the terms and
told me too. A career in finance is a great way
conditions that are negotiated in their favour.
to learn the nuances of and be exposed to a
you'd get in another career path. For example, I
What was the most challenging part of your work?
worked on a CAPEX facility for cherry orchards
The most challenging part of my role is framing
and now I know all these interesting facts about
the credit story to accurately depict our client's
how to grow cherries, their harvest cycles and
situation and cover off any potential commercial
the insane premium Asian countries are willing to
contention
pay for them.
lender's due diligence and delay the transaction.
broad
range
of
industries
which
I
don't
think
points
that
could
arise
during
the
The primary concern for debt investors is capital
What do you do in your current role? Neu
Capital
specialising leveraged property.
is in
a
boutique
mid-market
finance, We
transactions
structured
quite
firm
across
finance
need
who
to
volatility.
deal
ensure
with
that
Therefore,
non-bank
our
debt
lenders, papers
and
papers
that
handling
managing
Q&A
with
they
are
lenders
taking
as
potential
we
ability to recover their loan for the additional risk
get
reflect
credit
as
includes preparing deal materials such as credit
and
the
advisors
from
to
and
so
loss
scenarios
models,
team,
of
analysts have quite a lot of responsibility which
communications
small
and
risk
models
financial
a
advisory
financial
and
are
debt
preservation and ensuring that equity wears the
stressed
comfortable
this
on
determines
their
the
pricing and terms that we can negotiate for our
investors and clients.
clients.
What do you enjoy the most about your work?
Advice to students:
Really clique but what I most enjoy at work is
I highly recommend that if you are interested in
helping structure transactions and participating
finance,
in commercial negotiations as there are always
societies such as FINSOC so you can meet other
different
considerations
like-minded students. Your friends will be your
which
find
I
for
grades play a critical role in securing internships
know
and graduate roles!
your
deal
team
has
negotiated
are
finance
been working on reaches financial close and you that
referrals
the
powerful. Also, study hard from day 1 as your
that
as
of
have
transaction
network
one
you
a
feels
join
greatest
when
It
transaction
you
extremely
rewarding
interesting.
every
that
extremely
excellent commercials on the client’s behalf.
64
JACQUELINE LIU
Investment Banking Analyst at Credit Suisse 2019 Graduate Bachelor of Commerce (Finance and Accounting)
What motivates you to pursue a career in finance?
What do you enjoy the most about your work?
Investment
assist a diverse range of clients through providing
banking
appealed
to
me
as
the
I enjoy working closely with a supportive team to
increasingly complex challenge faced by firms
our
analysis
today to grow would mean new demands for
solutions to their unique business, and facilitating
creative solutions, so no one day would be like
deals. Our teams are quite lean, so juniors are
the next. In particular, working in finance does
given a lot of responsibility in taking ownership of
not limit you to any one sector as finance is
producing meaningful work that is presented to
applicable to and touches upon all industries
clients
(e.g. industrial, real estate etc.).
assisting
and in
on
current
released drafting
trends
to ASX
the
and
potential
public,
such
announcements
as and
prospectuses.
What do you do in your current role? capital
What was the most challenging part of your work?
advisory
The most challenging part of work was definitely
services for real estate clients. This is a broad
at the start, trying to pick up on all the jargon
sector,
specific
I’ve
recently
coverage raising
team,
and
with
Scentre Group),
day,
(e.g.
pubs,
childcare,
may
look
(e.g.
Goodman
Office
others
storage like
retail
(e.g.
Centuria and
Estate
provide
including
industrial
Dexus)
Real
transaction
sub-sectors
(e.g.
the
we
strategic
office
this
into
where
Group),
diversified hotels,
rotated
to
the
clients’
industry
group
as
this
information is not readily available online in the
REIT),
public domain. In addition, the work is very fast-
(includes
paced and it is quite common for people to be
etc.).
Day
preparing
to
working on different work streams simultaneously.
client
presentations and updating financial models for
Advice to students:
clients to assess potential ideas to pursue or
I advise students to apply for internships since the
bespoke deal-specific work. Previously, I worked
best way to understand the role is to have first-
in
hand experience. In addition, it is helpful to reach
the
Financial
Institutions
Group
(FIG)
coverage team, which is similar kind of advice
out
work but focused on advising financial services
applying to and try to schedule a coffee catch-
clients such as the banks, wealth management,
up to understand more about the role. The juniors
asset
companies.
have been in your shoes previously and will be
Deals I have worked on include being on the IPO
able to share their experiences and what they
of
found most useful during the hiring process. This
management
Liberty
and
Financial,
insurance
Latitude
Financial
and
Pepper Money, and the strategic review of AMP.
to
current
employees
of
the
firm
you
are
will allow your application to stand out by being able
to
tailor
responses
to
the
firm
you
are
applying for. Good luck
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