Careers - Induction to

Finance

Roger Howgego/Richard Smith

July 2010
 Agenda
• Roles and Functions
• How to Apply/Timing
• Preparation before Application
• Reasons for Rejection
• Your Strengths as a Candidate
• Career Progression
• Impact of Downturn on Recruitment
• Information Sources for Further Reading
Overview
Central Bank + Regulators + Treasury

CAPITAL USERS UNIVERSAL/INVESTMENT BANKS CAPITAL PROVIDERS

Investors
Issuers Capital Asset Managers
Government Corporate Markets Hedge Funds
Corporate Finance (Trading Private Equity
Supranationals Floor) Private Wealth
Management

Borrowers
Lenders
Corporates Commercial
Retail
Retail Banking
Institutional Corporations
Mortgages

Stock Exchange + Custodian Bank + Brokers - Clearers

Investment/Universal Banks

Corporate Finance Capital Markets Support

Risk
Equity and FICC
Finance
Sales – Geographic product
Industry Specialist Groups Treasury
focus
M&A Operations
Trading – Product focus
Geographic teams Legal
Research – Industry (Eq.)
Debt/Equity Capital Markets Compliance
Credit/Quant Strategic (FICC)
HR
Prime Broker
IT

Project Finance, Commercial Loans, Correspondent/Retail banking

Participants

Barclays Capital, JP Morgan, Goldman Sachs,

IB/UB Deutsche Bank, Nomura, Standard Chartered

Boutiques Greenhill, Jefferies, Close Brothers

Commercial Lloyds Banking Group, Barclays Bank, Sumitomo

Blackrock
Asset Managers Pimco
JP Morgan Asset management

Hedge Funds Brevan Howard

3i
Private Equity KKR Permira

Private Wealth
Barclays Wealth, Pictet
Management
Participants

Towers Watson
Investment Consultants Mercer

IBRD (World bank)

Regional Development
IFC
Banks EBRD

PwC
Ernst & Young
Advisory/Accounting Deloitte
KPMG

SEC
Regulators BAFIN
FSA

Moodys
Rating Agencies S&P
Fitch

SAB Miller
Finance division of
Shell
corporates Diageo
Participants

Icap
Interdealer brokers Tulllets

Bloomberg
Information providers Thomson Reuters

Northern Trust
Custodian banks State Street
BoNY Mellon

Bank of England
Public sector Federal Reserve
ECB

Norges Bank
Sovereign wealth funds ADIA
Australian Future Fund
 How to Apply/Timing

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

• Analyst vs. associate

• On line process/cover letter and CV

• Lateral hires – company websites

• Network – main route to opportunities

• Direct approach – company websites

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

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

FTSE 100
 Preparation Before Application
• Thorough research of company to include:
– Business divisions
– Structure and ownership
– Recent corporate history (earnings/events/personnel)
– Share price
– Recent transactions
– Competitors
– Value proposition/mission statement

• The role and how it fits into the organisation and contributes to revenues
• The markets in your chosen area of interest
• Current affairs and developments
 Reasons for Rejection
• Spelling mistakes

• Copy and paste errors

• Grammar

• Poor presentation – fonts /alignment

• Too much irrelevant information

• Too little relevant information

• Poorly constructed cover letter

 Your Strengths as a Candidate
• Differentiate yourself/ unique selling point

• Don’t forget language/cultural skills

• Highlight historic exposure to financial industry

• Personal investing/portfolios of any sort

• List any relevant books/journals/trade magazines read

• Demonstrate financial markets awareness – clubs, societies

• Dissertations or projects of a financial nature

• Relevant work experience or internships

 Career Progression MANAGING
DIRECTOR

• Firm leadership
SENIOR VICE • Strategic planning
PRESIDENT • Personnel direction

• Project leadership
VICE PRESIDENT • Revenue generation
• Training for MD role

• Team leadership
ASSOCIATE • Increased client contact
• Workflow responsibility

• Complex modelling
ANALYST • Client contact
• Leadership

• Financial analysis
• Teamwork skills
 Impact of the Downturn on
Recruitment
• Fewer places and more competition

• Thorough preparation and commitment even more crucial

• More attrition should create openings

• Closure of entry level programs not an option

• More targeted approach

• One off roles

• All year round activity

• Internships have become even more important than before

 Information Sources for Further
Reading
• Individual company websites (www.gs.com, www.ms.com)

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

• www.ft.com

• www.bloomberg.com

• www.investmentfunds.org

• www.bis.org

• www.bba.org

• http://village.albourne.com/
 ASSET MANAGERS

Aegon Asset Management Lazard Asset Management

Alliance Bernstein* Legal & General
Allianz Global Investors* Lloyds TSB Group
Amundi (Agricole/SocGen) Man Group/GLG
Axa Asset Management Mellon Financial
Baring Asset Management Morley Fund Management (Aviva Group)*
Bank of New York Mellon Natixis Asset Management
BP Investment Management Nomura Asset Management
Blackrock/Barclays Global Investors* Optiva
BNP Paribas Asset Management Northern Trust
Capital Group Orbis
CDC Ixis Asset Management Pension First
Cigna Pictet Asset Management
Citigroup Asset Management Pimco
Credit Suisse Asset Management Prudential
Deutsche Bank Asset Management Putnam Investments
European Investment Fund – (EIB Rathbones
Affiliate/SME Lending)
Fidelity Resolution (Britannic)
Foreign and Colonial Sandford Bernstein
Franklin Templeton Santander Asset Management
Fortis Schroder Investment Management
GE Asset Management SIG – Susquehana International Group
GE Capital State Street Global Investors
Generali Group Smith and Williamson
Global Asset Management (GAM) Swiss Re
Goldman Sachs Asset Management* Threadneedle
HSBC Asset Management UBS Asset Management
Henderson Global Investors Vanguard
ING Group Zurich Financial Services
Intesa
Invesco Asset Management Scotland:
Investec Baillie Gifford
Intesa Asset Management Scottish Mutual
Insight Investment Management Scottish Widows
JP Morgan Asset Management* Standard Life*

*Firms that have a graduate program

Further Information Sources:
Investment Management Association www.investmentuk.org
European Fund and Asset Management Association www.efama.org
 INVESTMENT/UNIVERSAL BANK LIST

American Express Macquarie

Bank of America Merrill Lynch Morgan Stanley
Barclays Capital Mitsubishi UFJ Securities
BBVA Mizuho
BNP Paribas Nomura
Credit Agricole Investment Bank (CIB) Royal Bank of Canada Capital Markets
CIBC World Markets Royal Bank of Scotland
Citigroup NM Rothschild
Credit Suisse Group Rabobank
Daiwa Securities Sanpaolo/Intesa
Deutsche Bank Societe Generale
Goldman Sachs Standard Chartered
GE Capital Standard Bank (South Africa)
HSBC Sumitomo Mitsui Banking Corporation
ING Bank Banco Santander
Investec UBS
JP Morgan Chase Unicredit
Lazard

Further Information Sources:

British Bankers Association www.bba.org.uk
Or country/city specific bankers associations
 BOUTIQUE/NICHE BANKS

Alix Partners – Financial Restructuring Jeffries & Co

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

Further Information Sources:

www.afme.eu
www.liba.org.uk
 PROFESSIONAL SERVICE FIRMS

Ernst & Young KPMG

Deloitte PwC
BDO Stoy Hayward Grant Thornton

ISLAMIC BANKING

The Islamic Bank of Britain – Retail European Finance House

European Islamic Investment Bank Gatehouse
Bank of London and Middle East

INFORMATION SOURCES FOR FURTHER NAMES

AFME (Assoc. Financial Markets in EU) www.afme.eu

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

OTHER FINANCIAL INSTITUTIONS

SUPRANATIONALS

African Development Bank IBRD - World Bank – Washington

Asian Development Bank IFC - International Finance Corp. –
Washington/London/Paris
Bank For International Settlements InterAmerican Development Bank –
Washington
EBRD – European Bank For Crown Agents - UK
Reconstruction And Development
European Investment Bank DFID- Department For International
Development
Kreditanstalt Fur Weideraufbau

CENTRAL BANKS

Bank of England European Central Bank – Frankfurt

All Countries have a central bank usually located in the capital city

RATING AGENCIES

Fitch Standard and Poors

Moodys DBRS
 REGULATORY BODIES

ICFR – International Centre for Financial FSA - Financial Services Authority

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

INVESTMENT CONSULTANTS

Aon Consulting Fortune Asset Management (Close

Brothers Sub)
Barrington Partners MSCI Barra/Riskmetrics
Cambridge Associates Redington Partners
Duff & Phelps Towers Watson
Russell Investments Chatham Financial
Hewitt Associates Scorpio Partnership
Mercer Investment Consultants FTI Consulting
Mourant Q Finance

INFORMATION PROVIDERS

Bloomberg Euromoney
Thomson Reuters Fidessa
Financial Times Institutional Investor

INTER-DEALER BROKERS/TRADING HOUSES

BGC Partners GFI

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

CLEARING HOUSES

LCH Clearnet Euroclear

PRIVATE EQUITY/VENTURE CAPITAL

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

Association of British Insurers www.abi.org.uk

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

FINANCE DIVISIONS OF CORPORATE ENTITIES

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

INDEPENDENT RESEARCH HOUSES

TOP 10 IN EUROPE

Redburn Partners New Street Research

Autonomous Research BCA Research
Absolute Strategy Research Capital Economics
Helvea Auerbach Grayson
Arete Research Druganalyst Research

Further Information Sources:

European Assoc. Of Independent Research Providers http://www.euroirp.com/
 PRIVATE BANKING

Spears WMS - Publication Societe Generale Private Bank

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

FAMILY OFFICES

Sandaire Genspring Family Office (Fla)

Marcuard Family Office (Zurich) Pitcairn (Penn)

HEDGE FUNDS (EUROPE)

TOP 25

Blackstone/Barclays Global Investors The Children’s Investment Fund

Man Investments Cheyne Capital Man.
Bluebay Asset Man.
Lansdowne Partners Winton Capital Man.
Brevan Howard Asset Man. ADI Gestion (Paris)
Bluecrest Capital Man. Alternative & Quantitative Investments
(UBS) (Zurich)
Sloane Robinson M&G Investments
HSBC Polygon Investment Man
Marshall Wace Dexia Asset Man. (Paris)
Gartmore Investment Spinnaker Capital
CQS (UK) RAB Capital
Aspect Capital Brummer & Partners (Stockholm)
London Diversified Fund Man. AIMA.Org

Hedge Fund Assoc www.thehfa.org

https://village.albourne.com/user/news.pcg
Search Firms www.newlifenetwork.co.uk/executive-and-
senior-managerial-search-firms-C109.html